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Neogen

Nasdaq:NEOG
Snowflake Description

Flawless balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NEOG
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. The last earnings update was 81 days ago. More info.


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NEOG Share Price and Events
7 Day Returns
6.3%
NasdaqGS:NEOG
0%
US Medical Equipment
0.1%
US Market
1 Year Returns
-22.7%
NasdaqGS:NEOG
12.8%
US Medical Equipment
1.2%
US Market
NEOG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Neogen (NEOG) 6.3% 7.1% -1.2% -22.7% 57.4% 115.5%
US Medical Equipment 0% 6.1% 1.6% 12.8% 61.8% 95.3%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • NEOG underperformed the Medical Equipment industry which returned 12.8% over the past year.
  • NEOG underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
NEOG
Industry
5yr Volatility vs Market

Value

 Is Neogen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Neogen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Neogen.

NasdaqGS:NEOG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NEOG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.85 (1 + (1- 21%) (0%))
0.9
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.9 * 5.96%)
8.09%

Discounted Cash Flow Calculation for NasdaqGS:NEOG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Neogen is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:NEOG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.09%)
2019 59.50 Analyst x1 55.05
2020 62.20 Analyst x1 53.23
2021 68.00 Analyst x1 53.84
2022 72.80 Est @ 7.06% 53.33
2023 76.99 Est @ 5.76% 52.18
2024 80.73 Est @ 4.85% 50.61
2025 84.13 Est @ 4.22% 48.80
2026 87.30 Est @ 3.77% 46.84
2027 90.32 Est @ 3.46% 44.84
2028 93.25 Est @ 3.24% 42.82
Present value of next 10 years cash flows $501.54
NasdaqGS:NEOG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $93.25 × (1 + 2.73%) ÷ (8.09% – 2.73%)
$1,786.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,786.25 ÷ (1 + 8.09%)10
$820.30
NasdaqGS:NEOG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $501.54 + $820.30
$1,321.84
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,321.84 / 52.12
$25.36
NasdaqGS:NEOG Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.36
Current discount Discount to share price of $63.10
= -1 x ($63.10 - $25.36) / $25.36
-148.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Neogen is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Neogen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Neogen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NEOG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in USD $1.19
NasdaqGS:NEOG Share Price ** NasdaqGS (2019-06-18) in USD $63.1
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 40.71x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Neogen.

NasdaqGS:NEOG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NEOG Share Price ÷ EPS (both in USD)

= 63.1 ÷ 1.19

52.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Neogen is overvalued based on earnings compared to the US Medical Equipment industry average.
  • Neogen is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Neogen's expected growth come at a high price?
Raw Data
NasdaqGS:NEOG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 52.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
8.9%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.27x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:NEOG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 52.8x ÷ 8.9%

5.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Neogen is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Neogen's assets?
Raw Data
NasdaqGS:NEOG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in USD $11.89
NasdaqGS:NEOG Share Price * NasdaqGS (2019-06-18) in USD $63.1
United States of America Medical Equipment Industry PB Ratio Median Figure of 183 Publicly-Listed Medical Equipment Companies 4.39x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:NEOG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NEOG Share Price ÷ Book Value per Share (both in USD)

= 63.1 ÷ 11.89

5.31x

* Primary Listing of Neogen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Neogen is overvalued based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess Neogen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Neogen has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Neogen expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Neogen expected to grow at an attractive rate?
  • Neogen's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Neogen's earnings growth is positive but not above the United States of America market average.
  • Neogen's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NEOG Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NEOG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 8.9%
NasdaqGS:NEOG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.6%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 22%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NEOG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NEOG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-05-31 528 80 1
2021-05-31 485 83 72 2
2020-05-31 447 77 65 6
2019-05-31 416 68 60 6
NasdaqGS:NEOG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-28 417 66 62
2018-11-30 414 74 65
2018-08-31 408 67 66
2018-05-31 402 69 63
2018-02-28 389 62 58
2017-11-30 382 58 52
2017-08-31 372 59 46
2017-05-31 362 60 44
2017-02-28 353 53 41
2016-11-30 341 44 39
2016-08-31 330 49 37
2016-05-31 321 35 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Neogen's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • Neogen's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NEOG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Neogen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NEOG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-05-31 1.48 1.48 1.48 1.00
2021-05-31 1.35 1.35 1.34 2.00
2020-05-31 1.23 1.25 1.22 5.00
2019-05-31 1.14 1.16 1.10 5.00
NasdaqGS:NEOG Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-28 1.19
2018-11-30 1.27
2018-08-31 1.29
2018-05-31 1.23
2018-02-28 1.14
2017-11-30 1.02
2017-08-31 0.90
2017-05-31 0.87
2017-02-28 0.82
2016-11-30 0.78
2016-08-31 0.74
2016-05-31 0.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Neogen is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Neogen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Neogen has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Neogen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Neogen's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Neogen's year on year earnings growth rate has been positive over the past 5 years.
  • Neogen's 1-year earnings growth is less than its 5-year average (6.6% vs 18.7%)
  • Neogen's earnings growth has not exceeded the US Medical Equipment industry average in the past year (6.6% vs 31.9%).
Earnings and Revenue History
Neogen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Neogen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NEOG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 416.87 61.91 113.46 11.19
2018-11-30 414.07 65.42 112.57 10.78
2018-08-31 407.67 66.47 111.23 10.58
2018-05-31 402.25 63.15 109.20 10.86
2018-02-28 388.66 58.07 104.26 11.20
2017-11-30 382.14 51.78 102.29 11.00
2017-08-31 372.16 45.83 98.98 10.81
2017-05-31 361.59 43.79 96.64 10.39
2017-02-28 352.83 41.18 94.90 10.34
2016-11-30 341.17 39.20 92.50 10.14
2016-08-31 330.06 37.12 89.52 10.00
2016-05-31 321.28 36.56 86.79 9.89
2016-02-29 309.81 36.09 83.55 9.97
2015-11-30 301.49 35.23 81.24 9.89
2015-08-31 290.34 33.97 79.08 9.75
2015-05-31 283.07 33.53 76.99 9.58
2015-02-28 271.73 31.68 75.46 9.08
2014-11-30 265.31 30.80 74.59 8.81
2014-08-31 256.46 29.20 73.25 8.64
2014-05-31 247.41 28.16 70.88 8.33
2014-02-28 236.15 27.65 67.93 8.38
2013-11-30 225.21 27.73 65.29 8.25
2013-08-31 216.35 28.32 62.63 7.94
2013-05-31 207.53 27.19 61.01 7.78
2013-02-28 200.07 26.19 58.28 7.56
2012-11-30 193.93 24.78 56.21 7.34
2012-08-31 188.08 23.22 54.18 7.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Neogen has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Neogen used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • Neogen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Neogen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Neogen has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Neogen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Neogen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Neogen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Neogen's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Neogen's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Neogen has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Neogen Company Filings, last reported 3 months ago.

NasdaqGS:NEOG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 619.92 0.00 246.68
2018-11-30 602.07 0.00 240.97
2018-08-31 581.63 0.00 226.41
2018-05-31 560.18 0.00 210.81
2018-02-28 541.94 0.00 192.16
2017-11-30 520.64 0.00 175.84
2017-08-31 487.25 0.00 159.99
2017-05-31 471.76 0.00 143.64
2017-02-28 451.66 0.00 124.58
2016-11-30 434.77 0.00 142.11
2016-08-31 417.22 0.00 129.23
2016-05-31 404.16 0.00 107.80
2016-02-29 387.87 0.00 125.16
2015-11-30 377.90 0.00 123.02
2015-08-31 365.91 0.00 110.96
2015-05-31 350.96 0.00 114.16
2015-02-28 336.71 0.00 102.15
2014-11-30 326.78 0.00 94.31
2014-08-31 318.87 0.00 88.10
2014-05-31 306.30 0.00 76.50
2014-02-28 291.12 0.00 68.81
2013-11-30 281.81 0.00 79.09
2013-08-31 270.72 0.00 84.38
2013-05-31 258.29 0.00 85.37
2013-02-28 245.70 0.00 74.57
2012-11-30 237.71 0.00 70.84
2012-08-31 229.22 0.00 74.50
  • Neogen has no debt.
  • Neogen has not taken on any debt in the past 5 years.
  • Neogen has no debt, it does not need to be covered by operating cash flow.
  • Neogen has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Neogen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Neogen has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Neogen dividends.
If you bought $2,000 of Neogen shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Neogen's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Neogen's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NEOG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NEOG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-05-31
2021-05-31
2020-05-31
2019-05-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Neogen has not reported any payouts.
  • Unable to verify if Neogen's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Neogen's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Neogen has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Neogen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Neogen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Neogen has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Adent
COMPENSATION $1,913,299
AGE 50
TENURE AS CEO 1.9 years
CEO Bio

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. Mr. Adent served as the Chief Executive Officer of Animal Health International, Inc. from 2004 to October 6, 2017 and also served as its President from 2004 to October 6, 2017. Mr. Adent served as the Chief Executive Officer, President and Director of Animal Health Holdings, Inc. since June 10, 2011. He served as Chief Executive Officer of the $3.3 billion Animal Health Division. He built his career inside of two companies for 13 years with each. He began his career with management responsibilities for Purina developing animal feed manufacturing and sales in China and the Philippines. When Purina spun off that business to Agribrands, he continued his management role in the European division in Spain and Hungary, serving as managing director of the Hungarian operations. He left Purina in 2004.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • John's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Neogen management team in years:

1.9
Average Tenure
53
Average Age
  • The average tenure for the Neogen management team is less than 2 years, this suggests a new team.
Management Team

James Herbert

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
78
TENURE
1.9 yrs

John Adent

TITLE
CEO & President
COMPENSATION
$2M
AGE
50
TENURE
1.9 yrs

Steve Quinlan

TITLE
VP, CFO & Secretary
COMPENSATION
$993K
AGE
56
TENURE
8.4 yrs

Terri Morrical

TITLE
Vice President of Animal Safety Operations
COMPENSATION
$866K
AGE
53
TENURE
27.4 yrs

Rod Poland

TITLE
Director of Corporate Communications

Jason Lilly

TITLE
Vice President of International Business
AGE
44
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Neogen board of directors in years:

8.1
Average Tenure
71
Average Age
  • The tenure for the Neogen board of directors is about average.
Board of Directors

James Herbert

TITLE
Executive Chairman
COMPENSATION
$2M
AGE
78
TENURE
13 yrs

Bill Boehm

TITLE
Director
COMPENSATION
$93K
AGE
71
TENURE
8.1 yrs

Ronnie Green

TITLE
Director
COMPENSATION
$94K
AGE
57
TENURE
4.7 yrs

Jack Parnell

TITLE
Lead Independent Director
COMPENSATION
$95K
AGE
83

G. Papesh

TITLE
Director
COMPENSATION
$95K
AGE
71
TENURE
25.7 yrs

Thomas Reed

TITLE
Director
COMPENSATION
$95K
AGE
73
TENURE
23.7 yrs

Jim Borel

TITLE
Director
COMPENSATION
$94K
AGE
62
TENURE
2.7 yrs

James Tobin

TITLE
Director
COMPENSATION
$94K
AGE
62
TENURE
2.7 yrs

Darci Vetter

TITLE
Director
COMPENSATION
$112K
AGE
44
TENURE
1.7 yrs

Robert Book

TITLE
Director Emeritus
COMPENSATION
$27K
AGE
88
TENURE
8.3 yrs
Who owns this company?
Recent Insider Trading
  • Neogen insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. May 19 Sell James Herbert Individual 20. May 19 20. May 19 -10,000 $58.21 $-582,077
01. May 19 Sell Jack Parnell Individual 29. Apr 19 01. May 19 -9,000 $60.58 $-543,620
22. Apr 19 Sell James Herbert Individual 17. Apr 19 18. Apr 19 -41,000 $56.11 $-2,299,496
15. Feb 19 Sell Jack Parnell Individual 06. Feb 19 06. Feb 19 -5,000 $62.65 $-313,233
12. Feb 19 Sell James Herbert Individual 11. Feb 19 11. Feb 19 -10,262 $61.60 $-632,159
01. Feb 19 Sell James Herbert Individual 30. Jan 19 31. Jan 19 -49,400 $59.73 $-2,932,615
24. Jan 19 Sell James Herbert Individual 22. Jan 19 22. Jan 19 -20,000 $60.24 $-1,202,410
24. Nov 18 Sell James Herbert Individual 20. Nov 18 21. Nov 18 -35,928 $61.03 $-2,192,405
29. Sep 18 Buy James Tobin Individual 26. Sep 18 26. Sep 18 500 $73.37 $36,685
29. Sep 18 Buy John Adent Individual 26. Sep 18 26. Sep 18 4,300 $73.58 $316,394
14. Aug 18 Sell James Herbert Individual 14. Aug 18 14. Aug 18 -13,000 $83.62 $-1,087,037
10. Aug 18 Sell James Herbert Individual 08. Aug 18 08. Aug 18 -13,000 $83.28 $-1,082,688
07. Aug 18 Sell James Herbert Individual 06. Aug 18 07. Aug 18 -39,000 $83.52 $-3,241,618
06. Aug 18 Sell James Herbert Individual 02. Aug 18 03. Aug 18 -26,000 $82.55 $-2,131,016
01. Aug 18 Sell James Herbert Individual 30. Jul 18 01. Aug 18 -39,000 $82.33 $-3,189,462
27. Jul 18 Sell James Herbert Individual 26. Jul 18 26. Jul 18 -13,000 $82.50 $-1,072,548
26. Jul 18 Sell James Herbert Individual 23. Jul 18 23. Jul 18 -16,029 $82.04 $-1,314,985
24. Jul 18 Sell Thomas Reed Individual 20. Jul 18 20. Jul 18 -5,333 $82.56 $-440,286
20. Jul 18 Sell James Herbert Individual 18. Jul 18 18. Jul 18 -38,600 $82.31 $-3,173,100
X
Management checks
We assess Neogen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Neogen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Neogen Corporation's (NASDAQ:NEOG) High P/E Ratio Isn't Necessarily A Bad Thing

We'll look at Neogen Corporation's (NASDAQ:NEOG) P/E ratio and reflect on what it tells us about the company's share price. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Neogen: P/E of 47.16 = $56.35 ÷ $1.19 (Based on the trailing twelve months to February 2019.) Is A High P/E Ratio Good? … Since Neogen holds net cash of US$247m, it can spend on growth, justifying a higher P/E ratio than otherwise.

Simply Wall St -

Here’s What Neogen Corporation’s (NASDAQ:NEOG) Return On Capital Can Tell Us

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Neogen: 0.11 = US$69m ÷ (US$673m - US$34m) (Based on the trailing twelve months to February 2019.) Therefore, Neogen has an ROCE of 11%. … In addition to low current liabilities (making a negligible impact on ROCE), Neogen earns a sound return on capital employed.

Simply Wall St -

Should You Be Worried About Insider Transactions At Neogen Corporation (NASDAQ:NEOG)?

So before you buy or sell Neogen Corporation (NASDAQ:NEOG), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … Neogen Insider Transactions Over The Last Year.

Simply Wall St -

How Did Neogen Corporation's (NASDAQ:NEOG) 10.0% ROE Fare Against The Industry?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Concerned About Neogen Corporation's (NASDAQ:NEOG) Historical Volatility?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Update: Neogen (NASDAQ:NEOG) Stock Gained 72% In The Last Five Years

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … The EPS growth is more impressive than the yearly share price gain of 12% over the same period. … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Simply Wall St -

Neogen Corporation's (NASDAQ:NEOG) Most Important Factor To Consider

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I will take you through Neogen’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Neogen’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

What Is Neogen Corporation's (NASDAQ:NEOG) Share Price Doing?

saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Neogen’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

Does Neogen Corporation’s (NASDAQ:NEOG) ROCE Reflect Well On The Business?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Don't Sell Neogen Corporation (NASDAQ:NEOG) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Neogen Corporation's (NASDAQ:NEOG) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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 Animal Safety. The Food Safety segment primarily offers diagnostic test kits and complementary to detect dangerous and/or unintended substances in human food and animal feed, such as 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, and grain processors and processors; 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, topical and 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.

Details
Name: Neogen Corporation
NEOG
Exchange: NasdaqGS
Founded: 1981
$3,288,798,628
52,120,422
Website: http://www.neogen.com
Address: Neogen Corporation
620 Lesher Place,
Lansing,
Michigan, 48912,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NEOG Common Stock Nasdaq Global Select US USD 23. Aug 1989
DB NG2 Common Stock Deutsche Boerse AG DE EUR 23. Aug 1989
Number of employees
Current staff
Staff numbers
1,546
Neogen employees.
Industry
Health Care Supplies
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:40
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/03/29
Last earnings reported: 2019/02/28
Last annual earnings reported: 2018/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.