Attractive stocks have exceptional fundamentals. In the case of Neogen Corporation (NASDAQ:NEOG), there’s is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Neogen here.
Flawless balance sheet with proven track record
In the previous year, NEOG has ramped up its bottom line by 26%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, NEOG also outperformed its industry, which delivered a growth of 14%. This is what investors like to see! NEOG’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that NEOG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Looking at NEOG’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$2.8b market cap company. NEOG has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Next Steps:
For Neogen, I’ve put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for NEOG’s future growth? Take a look at our free research report of analyst consensus for NEOG’s outlook.
- Valuation: What is NEOG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NEOG is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NEOG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.