NasdaqGS:NEOG

Stock Analysis Report

Executive Summary

Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide.

Rewards

Earnings are forecast to grow 11.15% per year

Risk Analysis

No risks detected for NEOG from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Neogen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEOG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

NEOG

-0.06%

US Medical Equipment

0.6%

US Market


1 Year Return

9.8%

NEOG

25.1%

US Medical Equipment

20.8%

US Market

Return vs Industry: NEOG underperformed the US Medical Equipment industry which returned 25.1% over the past year.

Return vs Market: NEOG underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

NEOGIndustryMarket
7 Day1.1%-0.06%0.6%
30 Day6.2%3.7%2.5%
90 Day-13.0%4.2%4.9%
1 Year9.8%9.8%26.2%25.1%23.5%20.8%
3 Year43.7%43.7%91.7%86.1%46.5%37.0%
5 Year88.8%88.8%117.6%93.8%64.6%46.5%

Price Volatility Vs. Market

How volatile is Neogen's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neogen undervalued compared to its fair value and its price relative to the market?

59.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEOG ($68.35) is trading above our estimate of fair value ($34.51)

Significantly Below Fair Value: NEOG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEOG is poor value based on its PE Ratio (59.7x) compared to the Medical Equipment industry average (46.6x).

PE vs Market: NEOG is poor value based on its PE Ratio (59.7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NEOG is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: NEOG is overvalued based on its PB Ratio (5.4x) compared to the US Medical Equipment industry average (4.2x).


Next Steps

Future Growth

How is Neogen forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEOG's forecast earnings growth (11.1% per year) is above the savings rate (1.7%).

Earnings vs Market: NEOG's earnings (11.1% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: NEOG's earnings are forecast to grow, but not significantly.

Revenue vs Market: NEOG's revenue (6.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: NEOG's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEOG's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Neogen performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEOG has high quality earnings.

Growing Profit Margin: NEOG's current net profit margins (14.3%) are lower than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: NEOG's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: NEOG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NEOG had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.3%).


Return on Equity

High ROE: NEOG's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Neogen's financial position?


Financial Position Analysis

Short Term Liabilities: NEOG's short term assets ($473.5M) exceed its short term liabilities ($40.4M).

Long Term Liabilities: NEOG's short term assets ($473.5M) exceed its long term liabilities ($20.4M).


Debt to Equity History and Analysis

Debt Level: NEOG is debt free.

Reducing Debt: NEOG has not had any debt for past 5 years.

Debt Coverage: NEOG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NEOG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NEOG has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NEOG's debt is covered by short term assets.


Next Steps

Dividend

What is Neogen's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NEOG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NEOG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NEOG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NEOG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NEOG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Neogen's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

John Adent (51yo)

2.4yrs

Tenure

US$1,962,814

Compensation

Mr. John Edward Adent has been Chief Executive Officer at Neogen Corporation since July 17, 2017 and has been its President since September 22, 2017. He has been Director of Neogen Corporation since Octobe ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.96M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

57yo

Average Age

Experienced Management: NEOG's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NEOG's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: NEOG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,333,36403 Dec 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares20,000
Max PriceUS$66.67
SellUS$1,321,58801 Nov 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares20,000
Max PriceUS$66.08
SellUS$1,343,37002 Oct 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares20,000
Max PriceUS$67.95
SellUS$1,075,10922 Aug 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares15,000
Max PriceUS$71.67
SellUS$30,73005 Aug 19
Jack Parnell
EntityIndividual
Shares439
Max PriceUS$70.00
SellUS$738,09731 Jul 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares10,499
Max PriceUS$70.39
SellUS$347,96429 Jul 19
Jack Parnell
EntityIndividual
Shares5,000
Max PriceUS$69.59
SellUS$582,07722 May 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares10,000
Max PriceUS$58.21
SellUS$543,62001 May 19
Jack Parnell
EntityIndividual
Shares9,000
Max PriceUS$60.58
SellUS$2,299,49622 Apr 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares41,000
Max PriceUS$56.11
SellUS$313,23315 Feb 19
Jack Parnell
EntityIndividual
Shares5,000
Max PriceUS$62.65
SellUS$632,15912 Feb 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares10,262
Max PriceUS$61.60
SellUS$2,932,61501 Feb 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares49,400
Max PriceUS$59.73
SellUS$1,202,41024 Jan 19
James Herbert
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman & Director of Strategic Growth
Shares20,000
Max PriceUS$60.24

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Steve Quinlan (57yo)

    VP, CFO & Secretary

    • Tenure: 8.9yrs
    • Compensation: US$828.38k
  • James Herbert (79yo)

    Non-Executive Chairman & Director of Strategic Growth

    • Tenure: 13.5yrs
    • Compensation: US$306.25k
  • Rod Poland

    Director of Corporate Communications

    • Tenure: 0yrs
  • John Adent (51yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.96m

Board Members

  • James Herbert (79yo)

    Non-Executive Chairman & Director of Strategic Growth

    • Tenure: 13.5yrs
    • Compensation: US$306.25k
  • G. Papesh (72yo)

    Independent Director

    • Tenure: 26.2yrs
    • Compensation: US$87.63k
  • Thomas Reed (74yo)

    Independent Director

    • Tenure: 24.2yrs
    • Compensation: US$89.63k
  • Robert Book (89yo)

    Director Emeritus

    • Tenure: 8.8yrs
    • Compensation: US$13.56k
  • Ronnie Green (58yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$88.63k
  • Bill Boehm (72yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$87.63k
  • Jim Borel (63yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$88.13k
  • John Adent (51yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.96m
  • Darci Vetter (45yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$85.63k
  • James Tobin (63yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$88.63k

Company Information

Neogen Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neogen Corporation
  • Ticker: NEOG
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$3.583b
  • Shares outstanding: 52.42m
  • Website: https://www.neogen.com

Number of Employees


Location

  • Neogen Corporation
  • 620 Lesher Place
  • Lansing
  • Michigan
  • 48912
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEOGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1989
NG2DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1989

Biography

Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. It operates through two segments, Food Safety and the Animal S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 23:41
End of Day Share Price2019/12/13 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.