NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock - Currency: USD
Taking everything into account, NEOG scores 4 out of 10 in our fundamental rating. NEOG was compared to 187 industry peers in the Health Care Equipment & Supplies industry. NEOG has an average financial health and profitability rating. NEOG is valued correctly, but it does not seem to be growing.
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.
In multiple years NEOG reported negative net income over the last 5 years.
Each year in the past 5 years NEOG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -12.02%, NEOG perfoms like the industry average, outperforming 59.36% of the companies in the same industry.
NEOG has a better Return On Equity (-18.24%) than 62.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.50%, NEOG is in the better half of the industry, outperforming 65.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEOG is significantly below the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.02% | ||
| ROE | -18.24% | ||
| ROIC | 0.5% |
ROA(3y)1.38%
ROA(5y)3.65%
ROE(3y)1.47%
ROE(5y)3.97%
ROIC(3y)2.71%
ROIC(5y)4.4%
1.3 Margins
NEOG's Operating Margin of 2.72% is fine compared to the rest of the industry. NEOG outperforms 67.38% of its industry peers.
In the last couple of years the Operating Margin of NEOG has declined.
The Gross Margin of NEOG (48.79%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NEOG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 48.79% |
OM growth 3Y-20.27%
OM growth 5Y-13.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.02%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
NEOG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NEOG has about the same amount of shares outstanding.
Compared to 5 years ago, NEOG has more shares outstanding
The debt/assets ratio for NEOG is higher compared to a year ago.
2.2 Solvency
NEOG has an Altman-Z score of 0.89. This is a bad value and indicates that NEOG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.89, NEOG is in line with its industry, outperforming 48.66% of the companies in the same industry.
NEOG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.33, NEOG perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.06
WACC7.95%
2.3 Liquidity
NEOG has a Current Ratio of 3.91. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.91, NEOG is doing good in the industry, outperforming 65.24% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that NEOG has no problem at all paying its short term obligations.
The Quick ratio of NEOG (2.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
NEOG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.83%.
The Earnings Per Share has been decreasing by -5.21% on average over the past years.
Looking at the last year, NEOG shows a decrease in Revenue. The Revenue has decreased by -2.50% in the last year.
The Revenue has been growing by 17.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-20.83%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-3.42%
3.2 Future
The Earnings Per Share is expected to grow by 6.10% on average over the next years.
The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y-15.77%
EPS Next 2Y-8.65%
EPS Next 3Y-1.15%
EPS Next 5Y6.1%
Revenue Next Year-2.43%
Revenue Next 2Y-2.11%
Revenue Next 3Y-0.88%
Revenue Next 5Y1.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NEOG is valuated correctly with a Price/Earnings ratio of 14.26.
Based on the Price/Earnings ratio, NEOG is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
NEOG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.76, NEOG is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEOG indicates a rather cheap valuation: NEOG is cheaper than 86.63% of the companies listed in the same industry.
NEOG is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
NEOG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEOG is cheaper than 84.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.65%
EPS Next 3Y-1.15%
5. Dividend
5.1 Amount
No dividends for NEOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.42
+0.2 (+3.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners128.1%
Inst Owner Change-0.54%
Ins Owners0.33%
Ins Owner Change26.75%
Market Cap1.18B
Analysts82
Price Target7.65 (41.14%)
Short Float %9.82%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.34%
Min EPS beat(2)-10.87%
Max EPS beat(2)11.56%
EPS beat(4)1
Avg EPS beat(4)-8.33%
Min EPS beat(4)-19.26%
Max EPS beat(4)11.56%
EPS beat(8)2
Avg EPS beat(8)50.77%
EPS beat(12)4
Avg EPS beat(12)43.66%
EPS beat(16)4
Avg EPS beat(16)25.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.66%
Max Revenue beat(2)-0.19%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)2.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)-11.76%
PT rev (3m)-11.76%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 14.76 | ||
| P/S | 1.3 | ||
| P/FCF | N/A | ||
| P/OCF | 17.19 | ||
| P/B | 0.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.3 |
EPS(TTM)0.38
EY7.01%
EPS(NY)0.37
Fwd EY6.77%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.32
OCFY5.82%
SpS4.17
BVpS12.26
TBVpS-2.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.02% | ||
| ROE | -18.24% | ||
| ROCE | 0.63% | ||
| ROIC | 0.5% | ||
| ROICexc | 0.52% | ||
| ROICexgc | 2.96% | ||
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 48.79% | ||
| FCFM | N/A |
ROA(3y)1.38%
ROA(5y)3.65%
ROE(3y)1.47%
ROE(5y)3.97%
ROIC(3y)2.71%
ROIC(5y)4.4%
ROICexc(3y)3.97%
ROICexc(5y)7.43%
ROICexgc(3y)14.92%
ROICexgc(5y)18.11%
ROCE(3y)3.43%
ROCE(5y)5.58%
ROICexcg growth 3Y-23.14%
ROICexcg growth 5Y-16.2%
ROICexc growth 3Y-51.38%
ROICexc growth 5Y-36.83%
OM growth 3Y-20.27%
OM growth 5Y-13.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.02%
GM growth 5Y1.61%
F-Score4
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.24 | ||
| Cap/Depr | 95.45% | ||
| Cap/Sales | 12.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 0.89 |
F-Score4
WACC7.95%
ROIC/WACC0.06
Cap/Depr(3y)91%
Cap/Depr(5y)106.13%
Cap/Sales(3y)8.23%
Cap/Sales(5y)7.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.83%
EPS 3Y-8.53%
EPS 5Y-5.21%
EPS Q2Q%-16.67%
EPS Next Y-15.77%
EPS Next 2Y-8.65%
EPS Next 3Y-1.15%
EPS Next 5Y6.1%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-3.42%
Revenue Next Year-2.43%
Revenue Next 2Y-2.11%
Revenue Next 3Y-0.88%
Revenue Next 5Y1.81%
EBIT growth 1Y-66.32%
EBIT growth 3Y-0.01%
EBIT growth 5Y1.73%
EBIT Next Year47.64%
EBIT Next 3Y17.49%
EBIT Next 5Y15.27%
FCF growth 1Y46.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y331.64%
OCF growth 3Y-24.24%
OCF growth 5Y-11.19%