NEO PERFORMANCE MATERIALS IN (NEO.CA) Stock Fundamental Analysis
TSX:NEO - CA64046G1063 - Common Stock
16.84 CAD
-0.29 (-1.69%)
Taking everything into account, NEO scores 3 out of 10 in our fundamental rating. 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NEO had negative earnings in the past year.
NEO had a negative operating cash flow in the past year.
In multiple years NEO reported negative net income over the last 5 years.
Of the past 5 years NEO 4 years had a positive operating cash flow.
1.2 Ratios
NEO's Return On Assets of -1.59% is in line compared to the rest of the industry. NEO outperforms 53.57% of its industry peers.
NEO has a better Return On Equity (-2.57%) than 67.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.76%, NEO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NEO is below the industry average of 8.88%.
The 3 year average ROIC (4.99%) for NEO is below the current ROIC(5.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.59% | ||
| ROE | -2.57% | ||
| ROIC | 5.76% |
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
NEO's Operating Margin of 8.55% is fine compared to the rest of the industry. NEO outperforms 67.86% of its industry peers.
In the last couple of years the Operating Margin of NEO has declined.
Looking at the Gross Margin, with a value of 28.18%, NEO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of NEO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.55% | ||
| PM (TTM) | N/A | ||
| GM | 28.18% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEO is destroying value.
The number of shares outstanding for NEO has been reduced compared to 1 year ago.
Compared to 5 years ago, NEO has more shares outstanding
The debt/assets ratio for NEO is higher compared to a year ago.
2.2 Solvency
NEO has an Altman-Z score of 2.44. 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.
Looking at the Altman-Z score, with a value of 2.44, NEO is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
NEO has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
NEO has a Debt to Equity ratio of 0.23. This is in the better half of the industry: NEO outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.44 |
ROIC/WACC0.69
WACC8.36%
2.3 Liquidity
A Current Ratio of 2.46 indicates that NEO has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.46, NEO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that NEO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.38, NEO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
NEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -422.52%.
The Revenue has decreased by -2.57% in the past year.
The Revenue has been growing slightly by 3.15% on average over the past years.
EPS 1Y (TTM)-422.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y-4.09%
Revenue growth 5Y3.15%
Sales Q2Q%6.65%
3.2 Future
Based on estimates for the next years, NEO will show a small growth in Earnings Per Share. The EPS will grow by 6.07% on average per year.
NEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y4.17%
EPS Next 2Y6.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.06%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NEO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 44.56, the valuation of NEO can be described as expensive.
71.43% of the companies in the same industry are more expensive than NEO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NEO to the average of the S&P500 Index (22.87), we can say NEO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 44.56 |
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 | 9.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NEO has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
NEO's Dividend Yield is a higher than the industry average which is at 5.78.
Compared to an average S&P500 Dividend Yield of 2.45, NEO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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
The earnings of NEO are negative and hence is the payout ratio. NEO will probably not be able to sustain this dividend level.
DP-117.46%
EPS Next 2Y6.07%
EPS Next 3YN/A
TSX:NEO (9/11/2025, 7:00:00 PM)
16.84
-0.29 (-1.69%)
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 Cap699.03M
Analysts83.33
Price Target21.68 (28.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0.41
Dividend Growth(5Y)-0.14%
DP-117.46%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-78%
Min EPS beat(2)-199.01%
Max EPS beat(2)43.01%
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)2.05%
Min Revenue beat(2)-0.05%
Max Revenue beat(2)4.16%
Revenue beat(4)3
Avg Revenue beat(4)6.8%
Min Revenue beat(4)-0.05%
Max Revenue beat(4)22.74%
Revenue beat(8)3
Avg Revenue beat(8)-2.03%
Revenue beat(12)5
Avg Revenue beat(12)0.02%
Revenue beat(16)7
Avg Revenue beat(16)0.84%
PT rev (1m)11.84%
PT rev (3m)34.07%
EPS NQ rev (1m)-30%
EPS NQ rev (3m)-46.56%
EPS NY rev (1m)-29.58%
EPS NY rev (3m)-29.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-23.25%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 44.56 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.25 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)-0.35
EYN/A
EPS(NY)0.38
Fwd EY2.24%
FCF(TTM)-2.01
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS16.11
BVpS13.51
TBVpS10.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.59% | ||
| ROE | -2.57% | ||
| ROCE | 8% | ||
| ROIC | 5.76% | ||
| ROICexc | 6.82% | ||
| ROICexgc | 8.76% | ||
| OM | 8.55% | ||
| PM (TTM) | N/A | ||
| GM | 28.18% | ||
| 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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 369.66% | ||
| Cap/Sales | 11.99% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.44 |
F-Score3
WACC8.36%
ROIC/WACC0.69
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)-422.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%550%
EPS Next Y4.17%
EPS Next 2Y6.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y-4.09%
Revenue growth 5Y3.15%
Sales Q2Q%6.65%
Revenue Next Year-2.06%
Revenue Next 2Y-0.32%
Revenue Next 3Y1.13%
Revenue Next 5YN/A
EBIT growth 1Y163.15%
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-234.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-103.83%
OCF growth 3YN/A
OCF growth 5Y-8.21%