NEOGEN CORP (NEOG) Stock Fundamental Analysis
NASDAQ:NEOG - Nasdaq - US6404911066 - Common Stock - Currency: USD
NEOG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. NEOG has an average financial health and profitability rating. NEOG has a expensive valuation and it also 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.
The reported net income has been mixed in the past 5 years: NEOG reported negative net income in multiple years.
NEOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -12.02%, NEOG is in line with its industry, outperforming 59.36% of the companies in the same industry.
NEOG's Return On Equity of -18.24% is fine compared to the rest of the industry. NEOG outperforms 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.
NEOG has a Gross Margin of 48.79%. This is comparable to the rest of the industry: NEOG outperforms 43.85% of its industry peers.
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.
Compared to 5 years ago, NEOG has more shares outstanding
Compared to 1 year ago, NEOG has a worse debt to assets ratio.
2.2 Solvency
NEOG has an Altman-Z score of 0.90. 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 (0.90) 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.06
WACC8.79%
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 65.24% of its industry peers.
A Quick Ratio of 2.45 indicates that NEOG has no problem at all paying its short term obligations.
NEOG's Quick ratio of 2.45 is in line compared to the rest of the industry. NEOG outperforms 55.62% of its industry peers.
| 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.
Looking at the last year, NEOG shows a decrease in Revenue. The Revenue has decreased by -2.50% in the last 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
NEOG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.10% yearly.
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-31.34%
EPS Next 3Y2.16%
EPS Next 5Y6.1%
Revenue Next Year-2.43%
Revenue Next 2Y-0.98%
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.
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 14.03.
Based on the Price/Earnings ratio, NEOG is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NEOG to the average of the S&P500 Index (27.45), we can say NEOG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 25.70, NEOG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, NEOG is valued a bit cheaper than 72.73% of the companies in the same industry.
NEOG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 25.7 |
4.2 Price Multiples
NEOG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEOG is cheaper than 82.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-31.34%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
No dividends for NEOG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.33
+0.1 (+1.91%)
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 Change6.45%
Ins Owners0.33%
Ins Owner Change31.2%
Market Cap1.16B
Analysts82
Price Target8.67 (62.66%)
Short Float %11.62%
Short Ratio4.01
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)0%
PT rev (3m)-42.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 25.7 | ||
| P/S | 1.28 | ||
| P/FCF | N/A | ||
| P/OCF | 16.9 | ||
| P/B | 0.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.47 |
EPS(TTM)0.38
EY7.13%
EPS(NY)0.21
Fwd EY3.89%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.32
OCFY5.92%
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 | 0.9 |
F-Score4
WACC8.79%
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-14.23%
EPS Next 2Y-31.34%
EPS Next 3Y2.16%
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-0.98%
Revenue Next 3Y0.13%
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%