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 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
NEO had negative earnings in the past year.
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.
Of the past 5 years NEO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.46%, NEO is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
With a decent Return On Equity value of -3.79%, NEO is doing good in the industry, outperforming 68.97% of the companies in the same industry.
NEO has a Return On Invested Capital of 5.70%. This is in the better half of the industry: NEO outperforms 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEO is below the industry average of 7.51%.
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.
NEO's Operating Margin has declined in the last couple of years.
The Gross Margin of NEO (27.21%) is better than 75.86% of its industry peers.
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 | 8.22% | ||
| 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.
Compared to 1 year ago, NEO has less shares outstanding
The number of shares outstanding for NEO has been increased compared to 5 years ago.
NEO has a worse debt/assets ratio than last year.
2.2 Solvency
NEO has an Altman-Z score of 2.59. 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 2.59, NEO is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
NEO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
NEO's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. NEO outperforms 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC0.72
WACC7.93%
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.
The Current ratio of NEO (2.41) is better than 68.97% 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 has a Quick ratio of 1.31. This is comparable to the rest of the industry: NEO outperforms 58.62% 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
The Revenue has been growing slightly by 3.15% on average over the past years.
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
Based on estimates for the next years, NEO will show a small growth in Revenue. The Revenue will grow by 1.40% on average per year.
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.
The Price/Forward Earnings ratio is 21.31, which indicates a rather expensive current valuation of NEO.
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.
The average S&P500 Price/Forward Earnings ratio is at 36.44. NEO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 21.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEO is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.1 |
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.
A more expensive valuation may be justified as NEO's earnings are expected to grow with 52.75% in the coming years.
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 2.38%, NEO has a reasonable but not impressive dividend return.
NEO's Dividend Yield is a higher than the industry average which is at 5.92.
Compared to an average S&P500 Dividend Yield of 2.35, NEO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 (7/18/2025, 7:00:00 PM)
16.54
-0.29 (-1.72%)
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 Cap691.70M
Analysts82.86
Price Target19.38 (17.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)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 | 21.31 | ||
| P/S | 1.06 | ||
| P/FCF | N/A | ||
| P/OCF | 28.89 | ||
| P/B | 1.25 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 9.1 |
EPS(TTM)-0.5
EYN/A
EPS(NY)0.78
Fwd EY4.69%
FCF(TTM)-1.38
FCFYN/A
OCF(TTM)0.57
OCFY3.46%
SpS15.59
BVpS13.24
TBVpS10.06
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 | 2.59 |
F-Score3
WACC7.93%
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)-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%