NEO PERFORMANCE MATERIALS IN (NEO.CA) Stock Fundamental Analysis
Canada - TSX:NEO - CA64046G1063 - Common Stock
22.26 CAD
+1.94 (+9.55%)
Taking everything into account, NEO scores 4 out of 10 in our fundamental rating. NEO was compared to 29 industry peers in the Chemicals industry. NEO has only an average score on both its financial health and profitability. NEO does not seem to be growing, but still is valued expensively.
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.
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
NEO has a Return On Assets of -1.59%. This is comparable to the rest of the industry: NEO outperforms 53.57% of its industry peers.
The Return On Equity of NEO (-2.57%) is better than 71.43% of its industry peers.
NEO has a better Return On Invested Capital (5.76%) than 82.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEO is below the industry average of 7.93%.
The last Return On Invested Capital (5.76%) for NEO is above the 3 year average (4.99%), which is a sign of increasing profitability.
| 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 has a Operating Margin of 8.55%. This is in the better half of the industry: NEO outperforms 71.43% of its industry peers.
NEO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.18%, NEO belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
NEO's Gross Margin has been stable in the last couple of years.
| 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.
NEO has more shares outstanding than it did 5 years ago.
NEO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that NEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
NEO has a Altman-Z score of 2.80. This is in the better half of the industry: NEO outperforms 71.43% of its industry peers.
NEO has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NEO (0.23) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.8 |
ROIC/WACC0.72
WACC7.97%
2.3 Liquidity
A Current Ratio of 2.46 indicates that NEO has no problem at all paying its short term obligations.
NEO has a Current ratio of 2.46. This is in the better half of the industry: NEO outperforms 67.86% of its industry peers.
A Quick Ratio of 1.38 indicates that NEO should not have too much problems paying its short term obligations.
NEO has a better Quick ratio (1.38) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for NEO have decreased strongly by -422.52% in the last year.
The Revenue has decreased by -2.57% in the past year.
NEO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.15% yearly.
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
NEO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
NEO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.76% yearly.
EPS Next Y4.17%
EPS Next 2Y6.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.66%
Revenue Next 2Y4.32%
Revenue Next 3Y5.68%
Revenue Next 5Y11.76%
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 accelerating.
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 quite expensively with a Price/Forward Earnings ratio of 58.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEO indicates a somewhat cheap valuation: NEO is cheaper than 71.43% of the companies listed in the same industry.
NEO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 58.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEO is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 1.97%.
NEO's Dividend Yield is a higher than the industry average which is at 5.53.
NEO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 (10/3/2025, 7:00:00 PM)
22.26
+1.94 (+9.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners19.92%
Inst Owner ChangeN/A
Ins Owners1.39%
Ins Owner ChangeN/A
Market Cap926.02M
Analysts82.86
Price Target24.65 (10.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)13.73%
PT rev (3m)52.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.58%
Revenue NQ rev (1m)6.67%
Revenue NQ rev (3m)-18.14%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 58.45 | ||
| P/S | 1.37 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.64 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)-0.35
EYN/A
EPS(NY)0.38
Fwd EY1.71%
FCF(TTM)-2.02
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS16.2
BVpS13.58
TBVpS10.34
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 | 2.8 |
F-Score3
WACC7.97%
ROIC/WACC0.72
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-1.66%
Revenue Next 2Y4.32%
Revenue Next 3Y5.68%
Revenue Next 5Y11.76%
EBIT growth 1Y163.15%
EBIT growth 3Y-15.67%
EBIT growth 5Y-1.64%
EBIT Next Year126.97%
EBIT Next 3Y31.31%
EBIT Next 5Y35%
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%