NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock - Currency: USD
NEOG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. NEOG has only an average score on both its financial health and profitability. NEOG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NEOG was profitable.
In the past year NEOG had a positive cash flow from operations.
In multiple years NEOG reported negative net income over the last 5 years.
NEOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NEOG has a Return On Assets (-12.02%) which is comparable to the rest of the industry.
NEOG has a better Return On Equity (-18.24%) than 63.49% of its industry peers.
With a decent Return On Invested Capital value of 0.50%, NEOG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
NEOG had an Average Return On Invested Capital over the past 3 years of 2.71%. This is below the industry average of 7.71%.
| 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
Looking at the Operating Margin, with a value of 2.72%, NEOG is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Operating Margin of NEOG has declined.
With a Gross Margin value of 48.79%, NEOG perfoms like the industry average, outperforming 41.80% of the companies in the same industry.
NEOG's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEOG is destroying value.
The number of shares outstanding for NEOG remains at a similar level compared to 1 year ago.
NEOG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NEOG has a worse debt to assets ratio.
2.2 Solvency
NEOG has an Altman-Z score of 0.87. This is a bad value and indicates that NEOG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NEOG (0.87) is comparable to the rest of the industry.
NEOG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
NEOG has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACC0.05
WACC9.38%
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.
The Current ratio of NEOG (3.91) is better than 64.55% of its industry peers.
NEOG has a Quick Ratio of 2.45. This indicates that NEOG is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.45, NEOG perfoms like the industry average, outperforming 56.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
The earnings per share for NEOG have decreased strongly by -20.83% in the last year.
NEOG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.21% yearly.
The Revenue has decreased by -2.50% in the past year.
NEOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.41% yearly.
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.
NEOG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.81% yearly.
EPS Next Y-14.23%
EPS Next 2Y-1.33%
EPS Next 3Y3.62%
EPS Next 5Y6.1%
Revenue Next Year-2.47%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.13%
Revenue Next 5Y1.81%
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
A Price/Earnings ratio of 13.55 indicates a correct valuation of NEOG.
Compared to the rest of the industry, the Price/Earnings ratio of NEOG indicates a rather cheap valuation: NEOG is cheaper than 89.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.85, NEOG is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.02, NEOG is valued correctly.
Based on the Price/Forward Earnings ratio, NEOG is valued cheaply inside the industry as 91.01% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NEOG to the average of the S&P500 Index (20.77), we can say NEOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEOG is valued cheaply inside the industry as 84.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.33%
EPS Next 3Y3.62%
5. Dividend
5.1 Amount
No dividends for NEOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.15
+0.1 (+1.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners121.73%
Inst Owner Change0.1%
Ins Owners0.23%
Ins Owner Change21.57%
Market Cap1.12B
Analysts82
Price Target8.67 (68.35%)
Short Float %12.11%
Short Ratio4.4
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)-42.05%
PT rev (3m)-47.42%
EPS NQ rev (1m)-30.77%
EPS NQ rev (3m)-45.45%
EPS NY rev (1m)-11.9%
EPS NY rev (3m)-19.57%
Revenue NQ rev (1m)-6.38%
Revenue NQ rev (3m)-13.01%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 12.02 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 16.33 | ||
| P/B | 0.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.04 |
EPS(TTM)0.38
EY7.38%
EPS(NY)0.43
Fwd EY8.32%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.32
OCFY6.12%
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 | 0.87 |
F-Score4
WACC9.38%
ROIC/WACC0.05
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-14.23%
EPS Next 2Y-1.33%
EPS Next 3Y3.62%
EPS Next 5Y6.1%
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y25.42%
Revenue growth 5Y17.41%
Sales Q2Q%-3.42%
Revenue Next Year-2.47%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.13%
Revenue Next 5Y1.81%
EBIT growth 1Y-66.32%
EBIT growth 3Y-0.01%
EBIT growth 5Y1.73%
EBIT Next Year62.88%
EBIT Next 3Y24.17%
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%