NEO PERFORMANCE MATERIALS IN (NEO.CA) Stock Fundamental Analysis
TSX:NEO - Toronto Stock Exchange - CA64046G1063 - Common Stock - Currency: CAD
Overall NEO gets a fundamental rating of 4 out of 10. We evaluated NEO against 30 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NEO has reported negative net income.
In the past year NEO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NEO reported negative net income in multiple years.
NEO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of NEO (-1.98%) is better than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of -3.22%, NEO is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.14%, NEO is doing good in the industry, outperforming 76.67% of the companies in the same industry.
NEO had an Average Return On Invested Capital over the past 3 years of 4.99%. This is below the industry average of 7.38%.
The last Return On Invested Capital (5.14%) for NEO is above the 3 year average (4.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.98% | ||
| ROE | -3.22% | ||
| ROIC | 5.14% |
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 7.45%, NEO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
NEO's Operating Margin has declined in the last couple of years.
The Gross Margin of NEO (26.05%) is better than 66.67% of its industry peers.
NEO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.45% | ||
| PM (TTM) | N/A | ||
| GM | 26.05% |
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
NEO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NEO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEO has more shares outstanding
NEO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.02 indicates that NEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.02, NEO is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that NEO is not too dependend on debt financing.
The Debt to Equity ratio of NEO (0.17) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.71
WACC7.24%
2.3 Liquidity
A Current Ratio of 2.23 indicates that NEO has no problem at all paying its short term obligations.
NEO has a Current ratio of 2.23. This is in the better half of the industry: NEO outperforms 63.33% of its industry peers.
NEO has a Quick Ratio of 1.36. This is a normal value and indicates that NEO is financially healthy and should not expect problems in meeting its short term obligations.
NEO has a better Quick ratio (1.36) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for NEO have decreased strongly by -70.53% in the last year.
NEO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.74%.
NEO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.15% yearly.
EPS 1Y (TTM)-70.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-796.27%
Revenue 1Y (TTM)-16.74%
Revenue growth 3Y-4.09%
Revenue growth 5Y3.15%
Sales Q2Q%4.85%
3.2 Future
Based on estimates for the next years, NEO will show a very strong growth in Earnings Per Share. The EPS will grow by 52.75% on average per year.
The Revenue is expected to grow by 1.40% on average over the next years.
EPS Next Y47.92%
EPS Next 2Y52.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y1.4%
Revenue Next 3YN/A
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
The Price/Earnings Ratio is negative for NEO. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 24.26 indicates a rather expensive valuation of NEO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEO indicates a somewhat cheap valuation: NEO is cheaper than 80.00% of the companies listed in the same industry.
NEO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEO indicates a rather cheap valuation: NEO is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
The 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
NEO has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.72, NEO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, NEO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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.
As NEO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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-95.24%
EPS Next 2Y52.75%
EPS Next 3YN/A
TSX:NEO (5/2/2025, 7:00:00 PM)
12.02
+0.52 (+4.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners22.42%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap502.68M
Analysts82.86
Price Target15.15 (26.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
Yearly Dividend0.41
Dividend Growth(5Y)-0.14%
DP-95.24%
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)2
Avg Revenue beat(2)11.54%
Min Revenue beat(2)0.34%
Max Revenue beat(2)22.74%
Revenue beat(4)2
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-18.01%
Max Revenue beat(4)22.74%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)8
Avg Revenue beat(16)1.56%
PT rev (1m)6.58%
PT rev (3m)6.58%
EPS NQ rev (1m)-63.96%
EPS NQ rev (3m)-63.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.58%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.26 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 7.83 | ||
| P/B | 0.9 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 6.87 |
EPS(TTM)-0.43
EYN/A
EPS(NY)0.5
Fwd EY4.12%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)1.54
OCFY12.77%
SpS15.72
BVpS13.29
TBVpS10.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.98% | ||
| ROE | -3.22% | ||
| ROCE | 7.18% | ||
| ROIC | 5.14% | ||
| ROICexc | 6.21% | ||
| ROICexgc | 8.14% | ||
| OM | 7.45% | ||
| PM (TTM) | N/A | ||
| GM | 26.05% | ||
| 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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 407.76% | ||
| Cap/Sales | 13.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.02 |
F-Score4
WACC7.24%
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)-70.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-796.27%
EPS Next Y47.92%
EPS Next 2Y52.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.74%
Revenue growth 3Y-4.09%
Revenue growth 5Y3.15%
Sales Q2Q%4.85%
Revenue Next Year-0.68%
Revenue Next 2Y1.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y164.47%
EBIT growth 3Y-15.67%
EBIT growth 5Y-1.64%
EBIT Next Year97.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-189.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.61%
OCF growth 3YN/A
OCF growth 5Y-8.21%