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 29 industry peers in the Chemicals industry. NEO has an average financial health and profitability rating. 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
In the past year NEO has reported negative net income.
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
NEO's Return On Assets of -2.46% is fine compared to the rest of the industry. NEO outperforms 68.97% of its industry peers.
NEO's Return On Equity of -3.79% is fine compared to the rest of the industry. NEO outperforms 68.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.70%, NEO is in the better half of the industry, outperforming 79.31% 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 7.51%.
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
The Operating Margin of NEO (8.22%) is better than 68.97% of its industry peers.
In the last couple of years the Operating Margin of NEO has declined.
NEO has a Gross Margin of 27.21%. This is in the better half of the industry: NEO outperforms 75.86% 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
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.
Compared to 1 year ago, NEO has a worse debt to assets ratio.
2.2 Solvency
NEO has an Altman-Z score of 2.54. 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.
With a decent Altman-Z score value of 2.54, NEO is doing good in the industry, outperforming 75.86% 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 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.74
WACC7.7%
2.3 Liquidity
A Current Ratio of 2.41 indicates that NEO has no problem at all paying its short term obligations.
NEO's Current ratio of 2.41 is fine compared to the rest of the industry. NEO outperforms 68.97% of its industry peers.
A Quick Ratio of 1.31 indicates that NEO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, NEO perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for NEO have decreased strongly by -636.75% in the last year.
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 1.40% yearly.
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
NEO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 20.56, NEO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, NEO is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
NEO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
79.31% of the companies in the same industry are more expensive than NEO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.78 |
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 2.52%, NEO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.95, NEO pays a bit more dividend than its industry peers.
NEO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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-79.53%
EPS Next 2Y52.75%
EPS Next 3YN/A
TSX:NEO (7/11/2025, 7:00:00 PM)
15.93
+0.03 (+0.19%)
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 Cap666.19M
Analysts82.86
Price Target16.17 (1.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)0%
PT rev (3m)6.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)200%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.56 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 27.87 | ||
| P/B | 1.2 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)-0.5
EYN/A
EPS(NY)0.77
Fwd EY4.86%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)0.57
OCFY3.59%
SpS15.57
BVpS13.22
TBVpS10.05
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 | 2.54 |
F-Score3
WACC7.7%
ROIC/WACC0.74
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-0.68%
Revenue Next 2Y1.4%
Revenue Next 3YN/A
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%