Neogenomics Inc

NEO

Services-Testing Laboratories

Mkt Cap

$1.782B

PE

-21.15

Debt

$538.9M

Cash

$331.9M

EV

$1.989B

FCF

-$39.59M

Market Cap

$1.782B

P/E Ratio

-21.15

Debt

$538.9M

Cash

$331.9M

EV

$1.989B

FCF

-$39.59M

Charts data: {"Earnings":[{"time":"2014-12-30","value":1132000},{"time":"2015-12-30","value":-2657000},{"time":"2016-12-30","value":-30397000},{"time":"2017-12-30","value":-11393000},{"time":"2018-12-30","value":2640000},{"time":"2019-12-30","value":8006000},{"time":"2020-12-30","value":4172000},{"time":"2021-12-30","value":-8347000},{"time":"2022-12-30","value":-144250000},{"time":"2023-12-30","value":-87968000}],"Sales":[{"time":"2014-12-30","value":87069000},{"time":"2015-12-30","value":99802000},{"time":"2016-12-30","value":244083000},{"time":"2017-12-30","value":258611000},{"time":"2018-12-30","value":276741000},{"time":"2019-12-30","value":408830000},{"time":"2020-12-30","value":444448000},{"time":"2021-12-30","value":484329000},{"time":"2022-12-30","value":509728000},{"time":"2023-12-30","value":591643000}],"Net Margins":[{"time":"2014-12-30","value":0.013001182969828527},{"time":"2015-12-30","value":-0.026622712971683934},{"time":"2016-12-30","value":-0.12453550636463825},{"time":"2017-12-30","value":-0.04405458391174389},{"time":"2018-12-30","value":0.009539605624031134},{"time":"2019-12-30","value":0.019582711640535187},{"time":"2020-12-30","value":0.009386924904600764},{"time":"2021-12-30","value":-0.017234152817609517},{"time":"2022-12-30","value":-0.28299406742419486},{"time":"2023-12-30","value":-0.14868425722944412}],"Assets":[{"time":"2014-12-30","value":81106000},{"time":"2015-12-30","value":367955000},{"time":"2016-12-30","value":337118000},{"time":"2017-12-30","value":343340000},{"time":"2018-12-30","value":505015000},{"time":"2019-12-30","value":709506000},{"time":"2020-12-30","value":988331000},{"time":"2021-12-30","value":1869778000},{"time":"2022-12-30","value":1740034000},{"time":"2023-12-30","value":1681229000}],"Stockholders Equity":[{"time":"2014-12-30","value":60405000},{"time":"2015-12-30","value":209510000},{"time":"2016-12-30","value":163723000},{"time":"2017-12-30","value":172918000},{"time":"2018-12-30","value":320443000},{"time":"2019-12-30","value":507408000},{"time":"2020-12-30","value":694294000},{"time":"2021-12-30","value":1108277000},{"time":"2022-12-30","value":998023000},{"time":"2023-12-30","value":941537000}],"ROE":[{"time":"2014-12-30","value":0.018740170515685786},{"time":"2015-12-30","value":-0.012681972220896377},{"time":"2016-12-30","value":-0.18566114718152002},{"time":"2017-12-30","value":-0.0658867208734776},{"time":"2018-12-30","value":0.00823859469546846},{"time":"2019-12-30","value":0.01577822974805285},{"time":"2020-12-30","value":0.006008981785814079},{"time":"2021-12-30","value":-0.007531510624149017},{"time":"2022-12-30","value":-0.14453574717215936},{"time":"2023-12-30","value":-0.09343021039003246}],"ROA":[{"time":"2014-12-30","value":0.02734692871057628},{"time":"2015-12-30","value":-0.01219986139609463},{"time":"2016-12-30","value":0.00763530870496384},{"time":"2017-12-30","value":0.006768800605813479},{"time":"2018-12-30","value":0.019880597606011702},{"time":"2019-12-30","value":0.018331064148858503},{"time":"2020-12-30","value":-0.014157200371130725},{"time":"2021-12-30","value":-0.00806245447320484},{"time":"2022-12-30","value":-0.0905861609600732},{"time":"2023-12-30","value":-0.057753583836586214}]}

NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States, Europe, and Asia. It operates through, Clinical Services and Pharma Services segments. The company offers testing services to hospitals, reference labs, pathologists, oncologists, clinicians, pharmaceutical firms, and researchers. It provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains. The company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients' oncology programs covering discovery and commercialization, as well as acts as a reference laboratory supplying anatomic pathology testing services. It has a strategic alliance agreement and laboratory services agreement with Inivata Limited. The company was founded in 2001 and is headquartered in Fort Myers, Florida.

Sector

10-Q
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10-K
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Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 170%

Earnings Stability -33%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-2.7%	-12%	-4.4%	0.95%	2%	0.94%	-1.7%	-28%	-15%	-14%
ROA	-1.2%	0.76%	0.68%	2%	1.8%	-1.4%	-0.81%	-9.1%	-5.8%	-5.6%
ROE	-1.3%	-19%	-6.6%	0.82%	1.6%	0.6%	-0.75%	-14%	-9.3%	-9.1%

What is the average Net Margin?

The average Net Margin over the past 5 years is -6.84%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -4.93%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -2.21%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -2.03%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -3.59%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.87%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	17.08	8.45	26.89	4.20	31.57	-6.22	-5.87	-5.53	-17.53	-13.61
Debt Equity	0.34	0.72	0.68	0.40	0.21	0.25	0.48	0.54	0.57	0.58
MIN
Graham Stability	-	-	-	-	-	-	-170%	-11K%	-	-11K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -13.61.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -6.27.

What is the Graham’s Stability?

Graham’s Stability measure stands at -112.96.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	13%	16%	10%	16%	-6.7%
Net Income	-	-	-	-	-250%
Stockholders Equity	28%	24%	11%	-5.7%	-15%
FCF	-	-	-	-	24%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +16.41%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -6.74%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -251.15%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +24.06%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -15.25%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +24.22%.