NEO PERFORMANCE MATERIALS IN (NEO.CA) Stock Fundamental Analysis
Canada - TSX:NEO - CA64046G1063 - Common Stock
16.88 CAD
-0.49 (-2.82%)
Taking everything into account, NEO scores 4 out of 10 in our fundamental rating. NEO was compared to 27 industry peers in the Chemicals industry. NEO has an average financial health and profitability rating. 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.
In the past year NEO has reported a negative cash flow from operations.
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
With a Return On Assets value of -1.59%, NEO perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
NEO has a better Return On Equity (-2.57%) than 70.37% of its industry peers.
The Return On Invested Capital of NEO (5.76%) is better than 81.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEO is below the industry average of 8.37%.
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
The Operating Margin of NEO (8.55%) is better than 70.37% of its industry peers.
NEO's Operating Margin has declined in the last couple of years.
NEO has a Gross Margin of 28.18%. This is amongst the best in the industry. NEO outperforms 81.48% of its industry peers.
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
NEO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
NEO has a worse debt/assets ratio than last year.
2.2 Solvency
NEO has an Altman-Z score of 2.40. 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.
The Altman-Z score of NEO (2.40) is better than 70.37% 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.
With a decent Debt to Equity ratio value of 0.23, NEO is doing good in the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.4 |
ROIC/WACC0.76
WACC7.57%
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 better Current ratio (2.46) than 70.37% of its industry peers.
NEO has a Quick Ratio of 1.38. 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 1.38. This is in the better half of the industry: NEO outperforms 66.67% of its industry peers.
| 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%.
Looking at the last year, NEO shows a decrease in Revenue. The Revenue has decreased by -2.57% in the last 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.
The Revenue is expected to grow by 11.76% on average over the next years. This is quite good.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 43.97 indicates a quite expensive valuation of NEO.
Based on the Price/Forward Earnings ratio, NEO is valued a bit cheaper than 70.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEO to the average of the S&P500 Index (22.27), we can say NEO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.97 |
4.2 Price Multiples
NEO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEO is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.07 |
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 2.21%.
NEO's Dividend Yield is a higher than the industry average which is at 5.31.
NEO's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
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 (11/4/2025, 7:00:00 PM)
16.88
-0.49 (-2.82%)
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 Cap702.21M
Revenue(TTM)482.49M
Net Income(TTM)-10386000
Analysts82.86
Price Target24.74 (46.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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)14.12%
PT rev (3m)27.63%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-65%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.58%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)6.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.97 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.23 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 9.07 |
EPS(TTM)-0.36
EYN/A
EPS(NY)0.38
Fwd EY2.27%
FCF(TTM)-2.04
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS16.33
BVpS13.69
TBVpS10.42
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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%
ROICexgc growth 3Y-20.73%
ROICexgc 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 | 2.4 |
F-Score3
WACC7.57%
ROIC/WACC0.76
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%
NEO PERFORMANCE MATERIALS IN / NEO.CA FAQ
What is the fundamental rating for NEO stock?
ChartMill assigns a fundamental rating of 4 / 10 to NEO.CA.
What is the valuation status of NEO PERFORMANCE MATERIALS IN (NEO.CA) stock?
ChartMill assigns a valuation rating of 1 / 10 to NEO PERFORMANCE MATERIALS IN (NEO.CA). This can be considered as Overvalued.
How profitable is NEO PERFORMANCE MATERIALS IN (NEO.CA) stock?
NEO PERFORMANCE MATERIALS IN (NEO.CA) has a profitability rating of 4 / 10.
What is the financial health of NEO PERFORMANCE MATERIALS IN (NEO.CA) stock?
The financial health rating of NEO PERFORMANCE MATERIALS IN (NEO.CA) is 5 / 10.