NEO PERFORMANCE MATERIALS IN (NEO.CA) Stock Fundamental Analysis
TSX:NEO - Toronto Stock Exchange - CA64046G1063 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to NEO. NEO was compared to 28 industry peers in the Chemicals industry. Both the profitability and the financial health of NEO get a neutral evaluation. Nothing too spectacular is happening here. NEO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NEO had negative earnings in the past year.
NEO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NEO reported negative net income in multiple years.
Of the past 5 years NEO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NEO (-2.46%) is better than 64.29% of its industry peers.
The Return On Equity of NEO (-3.79%) is better than 67.86% of its industry peers.
NEO's Return On Invested Capital of 5.70% is fine compared to the rest of the industry. NEO outperforms 78.57% of its industry peers.
NEO had an Average Return On Invested Capital over the past 3 years of 4.99%. This is below the industry average of 7.51%.
The last Return On Invested Capital (5.70%) for NEO is above the 3 year average (4.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.46% | ||
| ROE | -3.79% | ||
| ROIC | 5.7% |
ROA(3y)0.17%
ROA(5y)-1.1%
ROE(3y)0.1%
ROE(5y)-1.5%
ROIC(3y)4.99%
ROIC(5y)4.85%
1.3 Margins
Looking at the Operating Margin, with a value of 8.22%, NEO is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NEO has declined.
The Gross Margin of NEO (27.21%) is better than 75.00% of its industry peers.
NEO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.22% | ||
| PM (TTM) | N/A | ||
| GM | 27.21% |
OM growth 3Y-12.08%
OM growth 5Y-4.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.11%
GM growth 5Y0.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEO is destroying value.
NEO has less shares outstanding than it did 1 year ago.
NEO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEO has a worse debt to assets ratio.
2.2 Solvency
NEO has an Altman-Z score of 2.64. This is not the best score and indicates that NEO is in the grey zone with still only limited risk for bankruptcy at the moment.
NEO has a Altman-Z score of 2.64. This is in the better half of the industry: NEO outperforms 71.43% of its industry peers.
NEO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NEO (0.17) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.64 |
ROIC/WACC0.71
WACC8.05%
2.3 Liquidity
NEO has a Current Ratio of 2.41. This indicates that NEO is financially healthy and has no problem in meeting its short term obligations.
NEO has a Current ratio of 2.41. This is in the better half of the industry: NEO outperforms 67.86% of its industry peers.
NEO has a Quick Ratio of 1.31. This is a normal value and indicates that NEO is financially healthy and should not expect problems in meeting its short term obligations.
NEO's Quick ratio of 1.31 is in line compared to the rest of the industry. NEO outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
NEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -636.75%.
The Revenue for NEO has decreased by -14.82% in the past year. This is quite bad
Measured over the past years, NEO shows a small growth in Revenue. The Revenue has been growing by 3.15% on average per year.
EPS 1Y (TTM)-636.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
Revenue 1Y (TTM)-14.82%
Revenue growth 3Y-4.09%
Revenue growth 5Y3.15%
Sales Q2Q%-0.4%
3.2 Future
The Earnings Per Share is expected to grow by 52.75% on average over the next years. This is a very strong growth
NEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y47.92%
EPS Next 2Y52.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.08%
Revenue Next 2Y-1.32%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NEO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
NEO is valuated rather expensively with a Price/Forward Earnings ratio of 22.02.
Based on the Price/Forward Earnings ratio, NEO is valued a bit cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.87. NEO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEO is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
NEO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEO's earnings are expected to grow with 52.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, NEO has a reasonable but not impressive dividend return.
NEO's Dividend Yield is a higher than the industry average which is at 5.93.
Compared to an average S&P500 Dividend Yield of 2.39, NEO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of NEO decreases each year by -0.14%.
NEO has been paying a dividend for over 5 years, so it has already some track record.
NEO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-0.14%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
NEO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-79.53%
EPS Next 2Y52.75%
EPS Next 3YN/A
TSX:NEO (8/11/2025, 7:00:00 PM)
17.11
-0.04 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners19.92%
Inst Owner ChangeN/A
Ins Owners1.02%
Ins Owner ChangeN/A
Market Cap715.54M
Analysts82.86
Price Target19.38 (13.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend0.4
Dividend Growth(5Y)-0.14%
DP-79.53%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)11.35%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)22.74%
Revenue beat(4)2
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-18.01%
Max Revenue beat(4)22.74%
Revenue beat(8)3
Avg Revenue beat(8)0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)7
Avg Revenue beat(16)1.2%
PT rev (1m)19.87%
PT rev (3m)27.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)200%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)10.69%
Revenue NY rev (1m)-2.42%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.02 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 29.85 | ||
| P/B | 1.29 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)-0.5
EYN/A
EPS(NY)0.78
Fwd EY4.54%
FCF(TTM)-1.39
FCFYN/A
OCF(TTM)0.57
OCFY3.35%
SpS15.62
BVpS13.26
TBVpS10.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.46% | ||
| ROE | -3.79% | ||
| ROCE | 7.96% | ||
| ROIC | 5.7% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 8.81% | ||
| OM | 8.22% | ||
| PM (TTM) | N/A | ||
| GM | 27.21% | ||
| FCFM | N/A |
ROA(3y)0.17%
ROA(5y)-1.1%
ROE(3y)0.1%
ROE(5y)-1.5%
ROIC(3y)4.99%
ROIC(5y)4.85%
ROICexc(3y)6.39%
ROICexc(5y)6.12%
ROICexgc(3y)8.55%
ROICexgc(5y)8.48%
ROCE(3y)7.05%
ROCE(5y)6.84%
ROICexcg growth 3Y-20.73%
ROICexcg growth 5Y-9.41%
ROICexc growth 3Y-17.82%
ROICexc growth 5Y-3.58%
OM growth 3Y-12.08%
OM growth 5Y-4.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.11%
GM growth 5Y0.49%
F-Score3
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 377.8% | ||
| Cap/Sales | 12.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 2.64 |
F-Score3
WACC8.05%
ROIC/WACC0.71
Cap/Depr(3y)253.51%
Cap/Depr(5y)172.89%
Cap/Sales(3y)7.84%
Cap/Sales(5y)5.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-636.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-300%
EPS Next Y47.92%
EPS Next 2Y52.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.82%
Revenue growth 3Y-4.09%
Revenue growth 5Y3.15%
Sales Q2Q%-0.4%
Revenue Next Year-3.08%
Revenue Next 2Y-1.32%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
EBIT growth 1Y67.38%
EBIT growth 3Y-15.67%
EBIT growth 5Y-1.64%
EBIT Next Year104.78%
EBIT Next 3Y31.31%
EBIT Next 5YN/A
FCF growth 1Y-209.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-66.86%
OCF growth 3YN/A
OCF growth 5Y-8.21%