NasdaqGS:NEOG

Stock Analysis Report

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Executive Summary

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


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

3.7%

NEOG

4.3%

US Medical Equipment

2.8%

US Market


1 Year Return

26.2%

NEOG

16.7%

US Medical Equipment

9.3%

US Market

Return vs Industry: NEOG exceeded the US Medical Equipment industry which returned 17.2% over the past year.

Return vs Market: NEOG exceeded the US Market which returned 9.9% over the past year.


Shareholder returns

NEOGIndustryMarket
7 Day3.7%4.3%2.8%
30 Day17.7%7.5%8.9%
90 Day12.5%6.8%-0.5%
1 Year26.2%26.2%17.7%16.7%11.8%9.3%
3 Year48.2%48.2%59.9%55.4%31.4%22.7%
5 Year105.8%105.8%108.4%86.6%58.7%40.9%

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?

63.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEOG ($71.83) is trading above our estimate of fair value ($30.72)

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 (63.8x) compared to the Medical Equipment industry average (47.8x).

PE vs Market: NEOG is poor value based on its PE Ratio (63.8x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: NEOG is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: NEOG is overvalued based on its PB Ratio (5.3x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEOG's forecast earnings growth (9% per year) is above the savings rate (2.2%).

Earnings vs Market: NEOG's earnings (9% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: NEOG's revenue (7.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: NEOG's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NEOG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Neogen performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEOG has high quality earnings.

Growing Profit Margin: NEOG's current net profit margins (14.1%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: NEOG's earnings have grown by 15.2% 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 (-4.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (7.2%).


Return on Equity

High ROE: NEOG's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Neogen's financial position?


Financial Position Analysis

Short Term Liabilities: NEOG's short term assets ($514.9M) exceed its short term liabilities ($39.1M).

Long Term Liabilities: NEOG's short term assets ($514.9M) exceed its long term liabilities ($22.5M).


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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average board tenure


CEO

John Adent (51yo)

2.92yrs

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 ($USD1.96M) is below average for companies of similar size in the US market ($USD5.91M).

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


Board Members

NamePositionTenureCompensationOwnership
John Adent
President2.92yrsUS$1.96m0.030% $1.2m
James Herbert
Director38yrsUS$306.25k0.20% $7.6m
G. Papesh
Independent Director26.67yrsUS$87.63k0.061% $2.3m
Robert Book
Director Emeritus9.25yrsUS$13.56kno data
Gordon Guyer
Director Emeritusno dataUS$13.56kno data
Ronald Green
Independent Director5.67yrsUS$88.63k0.0032% $120.9k
William Boehm
Independent Director9.08yrsUS$87.63k0.020% $752.9k
James Borel
Independent Chairman0.17yrUS$88.13k0.0038% $143.7k
Darci Vetter
Independent Director2.67yrsUS$85.63kno data
James Tobin
Independent Director3.67yrsUS$88.63k0.010% $394.9k

5.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NEOG's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NEOG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.801b
  • Shares outstanding: 52.91m
  • 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 Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test for adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed processors; grain producers and processors; producers of cookies, crackers, candy, ice cream, and other processed foods; meat and poultry processors, seafood processors, fruit and vegetable producers, and dairies; laboratories; and producers of pharmaceuticals, cosmetics, veterinary vaccines, and nutraceutical products. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, diagnostic products, rodenticides, cleaners, disinfectants, insecticides, and genomics testing services for the animal safety market. This segment offers various products for researchers to detect biologically active substances. Its drug detection immunoassay test kits are used for the detection of abused and therapeutic drugs in farm and racing animals; detection of drug residues in meat and meat products; and human forensic toxicology drug screening applications. In addition, this segment’s products are also used to maintain sanitary conditions and limit the potential hazards of bacteria, fungi, and viruses. The company sells its products directly, as well as through distributors and retail chains. Neogen Corporation was founded in 1981 and is headquartered in Lansing, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 02:39
End of Day Share Price2020/06/01 00:00
Earnings2020/02/29
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.