NEOGEN CORP (NEOG)
US6404911066 - Common Stock
We assign a fundamental rating of 5 out of 10 to NEOG. NEOG was compared to 195 industry peers in the Health Care Equipment & Supplies industry. NEOG has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEOG is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
NEOG had positive earnings in the past year.
NEOG had a positive operating cash flow in the past year.
Of the past 5 years NEOG 4 years were profitable.
Each year in the past 5 years NEOG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NEOG (0.03%) is better than 71.79% of its industry peers.
NEOG has a better Return On Equity (0.05%) than 72.31% of its industry peers.
NEOG has a Return On Invested Capital of 1.33%. This is in the better half of the industry: NEOG outperforms 70.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEOG is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.03% | ||
| ROE | 0.05% | ||
| ROIC | 1.33% |
ROA(3y)3.66%
ROA(5y)5.42%
ROE(3y)3.99%
ROE(5y)5.92%
ROIC(3y)4.59%
ROIC(5y)5.86%
1.3 Margins
NEOG's Profit Margin of 0.17% is fine compared to the rest of the industry. NEOG outperforms 71.79% of its industry peers.
The Operating Margin of NEOG (7.87%) is better than 74.87% of its industry peers.
NEOG's Operating Margin has declined in the last couple of years.
NEOG has a Gross Margin of 50.97%. This is comparable to the rest of the industry: NEOG outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of NEOG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.87% | ||
| PM (TTM) | 0.17% | ||
| GM | 50.97% |
OM growth 3Y-9.84%
OM growth 5Y-7.68%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.7%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEOG is destroying value.
Compared to 1 year ago, NEOG has more shares outstanding
Compared to 5 years ago, NEOG has more shares outstanding
NEOG has a worse debt/assets ratio than last year.
2.2 Solvency
NEOG has an Altman-Z score of 1.66. This is a bad value and indicates that NEOG is not financially healthy and even has some risk of bankruptcy.
NEOG has a Altman-Z score (1.66) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.28 indicates that NEOG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, NEOG is in line with its industry, outperforming 45.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.13
WACC10.35%
2.3 Liquidity
NEOG has a Current Ratio of 3.82. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.82, NEOG perfoms like the industry average, outperforming 57.95% of the companies in the same industry.
A Quick Ratio of 2.66 indicates that NEOG has no problem at all paying its short term obligations.
The Quick ratio of NEOG (2.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 300.00% over the past year.
Measured over the past years, NEOG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.45% on average per year.
Looking at the last year, NEOG shows a very strong growth in Revenue. The Revenue has grown by 28.94%.
NEOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.63% yearly.
EPS 1Y (TTM)300%
EPS 3Y-40.34%
EPS 5Y-25.45%
EPS growth Q2Q0%
Revenue 1Y (TTM)28.94%
Revenue growth 3Y25.29%
Revenue growth 5Y15.63%
Revenue growth Q2Q4.82%
3.2 Future
The Earnings Per Share is expected to grow by 88.66% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.99% on average over the next years. This is quite good.
EPS Next Y359%
EPS Next 2Y147.39%
EPS Next 3Y88.66%
EPS Next 5YN/A
Revenue Next Year16.06%
Revenue Next 2Y10.4%
Revenue Next 3Y9.99%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.92, NEOG is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NEOG indicates a rather cheap valuation: NEOG is cheaper than 80.51% of the companies listed in the same industry.
NEOG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 16.29, which indicates a correct valuation of NEOG.
Based on the Price/Forward Earnings ratio, NEOG is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NEOG to the average of the S&P500 Index (21.63), we can say NEOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEOG indicates a rather cheap valuation: NEOG is cheaper than 83.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.92 |
4.3 Compensation for Growth
NEOG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEOG's earnings are expected to grow with 88.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y147.39%
EPS Next 3Y88.66%
5. Dividend
5.1 Amount
NEOG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NEOGEN CORP
NASDAQ:NEOG (4/25/2024, 4:20:02 PM)
After market: 12.05 +0.09 (+0.75%)11.96
-0.41 (-3.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 16.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.03% | ||
| ROE | 0.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.87% | ||
| PM (TTM) | 0.17% | ||
| GM | 50.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)300%
EPS 3Y-40.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y359%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.94%
Revenue growth 3Y25.29%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y