12.81 USD
-0.16 (-1.23%)
12.64 USD
-0.17 (-1.33%)
NEO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. While NEO seems to be doing ok healthwise, there are quite some concerns on its profitability. NEO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- NEO had positive earnings in the past year.
- In the past year NEO had a positive cash flow from operations.
- In the past 5 years NEO reported 4 times negative net income.
- The reported operating cash flow has been mixed in the past 5 years: NEO reported negative operating cash flow in multiple years.
1.2 Ratios
- With a Return On Assets value of -8.25%, NEO is not doing good in the industry: 68.93% of the companies in the same industry are doing better.
- The Return On Equity of NEO (-13.54%) is worse than 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.25% | ||
| ROE | -13.54% | ||
| ROIC | N/A |
ROA(3y)-6.11%
ROA(5y)-3.67%
ROE(3y)-10.84%
ROE(5y)-6.53%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- NEO's Gross Margin of 43.46% is fine compared to the rest of the industry. NEO outperforms 72.82% of its industry peers.
- In the last couple of years the Gross Margin of NEO has declined.
- NEO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 43.46% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.37%
GM growth 5Y-1.82%
2. Health
2.1 Basic Checks
- NEO does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, NEO has more shares outstanding
- 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 1.97 indicates that NEO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- NEO has a Altman-Z score (1.97) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.41 indicates that NEO is not too dependend on debt financing.
- NEO has a Debt to Equity ratio of 0.41. This is in the better half of the industry: NEO outperforms 65.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACCN/A
WACC7.75%
2.3 Liquidity
- A Current Ratio of 3.91 indicates that NEO has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.91, NEO belongs to the top of the industry, outperforming 89.32% of the companies in the same industry.
- NEO has a Quick Ratio of 3.62. This indicates that NEO is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 3.62, NEO belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 3.62 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.11% over the past year.
- The earnings per share for NEO have been decreasing by -20.25% on average. This is quite bad
- The Revenue has grown by 10.10% in the past year. This is quite good.
- NEO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.07% yearly.
EPS 1Y (TTM)11.11%
EPS 3YN/A
EPS 5Y-20.25%
EPS Q2Q%-40%
Revenue 1Y (TTM)10.1%
Revenue growth 3Y10.9%
Revenue growth 5Y10.07%
Sales Q2Q%11.9%
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 41.92% on average per year.
- NEO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.49% yearly.
EPS Next Y-11.43%
EPS Next 2Y29.75%
EPS Next 3Y54.31%
EPS Next 5Y41.92%
Revenue Next Year9.54%
Revenue Next 2Y9.62%
Revenue Next 3Y9.52%
Revenue Next 5Y9.49%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- NEO is valuated quite expensively with a Price/Earnings ratio of 128.10.
- The rest of the industry has a similar Price/Earnings ratio as NEO.
- NEO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 76.09, which means the current valuation is very expensive for NEO.
- The rest of the industry has a similar Price/Forward Earnings ratio as NEO.
- When comparing the Price/Forward Earnings ratio of NEO to the average of the S&P500 Index (25.98), we can say NEO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.1 | ||
| Fwd PE | 76.09 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- NEO's earnings are expected to grow with 54.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.75%
EPS Next 3Y54.31%
5. Dividend
5.1 Amount
- NEO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NEOGENOMICS INC / NEO FAQ
What is the fundamental rating for NEO stock?
ChartMill assigns a fundamental rating of 3 / 10 to NEO.
What is the valuation status for NEO stock?
ChartMill assigns a valuation rating of 1 / 10 to NEOGENOMICS INC (NEO). This can be considered as Overvalued.
How profitable is NEOGENOMICS INC (NEO) stock?
NEOGENOMICS INC (NEO) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for NEO stock?
The Earnings per Share (EPS) of NEOGENOMICS INC (NEO) is expected to decline by -11.43% in the next year.