Neogen Corp

Health Care
Biotechnology: In Vitro & In Vivo Diagnostic Substances
www.neogen.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.78B
PE -118
Debt $889.13M
Cash $120.48M
EV $3.55B
FCF -$124.88M

Earnings

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Sales & Net Margins

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Earnings	-$23.53M
EBIT	$41.79M
ROE	-1%
ROA	1%
FCF	-$124.88M
Equity	$3.14B
Growth Stability	-41%
PE	-118.05
PEG	8.35
PB	0.89
P/FCF	-22.25
P/S	3.05
Price/Cash	0.04
Debt/Equity	0.28
Debt/FCF	-7.12
Net Margins	-6%
Gross Margins	50%
Op. Margins	5%
Earnings CAGR	-3%
Sales Growth YoY	-5%
Sales Growth QoQ	-8%
Sales CAGR	13%
FCF CAGR	1%
Equity CAGR	27%
Earnings Stability	0.04
Earnings Growth YoY	-939%
Earnings Growth QoQ	133%

Earnings CAGR 5Y	-14%
Sales CAGR 5Y	23%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	51%
Earnings CAGR 3Y	32%
Sales CAGR 3Y	32%
FCF CAGR 3Y	-6%
Equity CAGR 3Y	77%
Market Cap	$2.78B
Revenue	$912.20M
Assets	$4.50B
Total Debt	$889.13M
Cash	$120.48M
Shares Outstanding	216.7M
EV	3.55B
Earnings Score	6%
Moat Score	13%
Safety Score	38%
Final Score	19%
Working Capital	417.96M
Current Ratio	4.41
Gross Profit	$452.07M
Shares Growth 3y	16%
Equity Growth QoQ	-0%
Equity Growth YoY	-0%

Assets & ROA

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Stockholders Equity & ROE

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Neogen Corporation, headquartered in Lansing, Michigan, develops, manufactures, and markets various products for food and animal safety. In food safety (70% of post-merger sales), Neogen performs diagnostics to detect unintended substances in food and animal feed, such as pathogens, allergens, and drug residues, for global food and feed processing companies. In animal safety (20% of post-merger sales), Neogen sells veterinary instruments, pharmaceuticals, disinfectants, and genomics tests for animals, including cattle, horses, and canines. Sales in the United States account for 60% of total revenue, while international markets, including Canada, Europe, Asia, and Latin America, account for the remaining 40%.

SEC Filings

Direct access to Neogen Corp (NEOG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 29
2023
- 10-Q Nov 30
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 28
2022
- 10-Q Nov 30
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 28

Sector Comparison

How does Neogen Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Neogen Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -3%

Stability 4%

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Neogen Corp Discounted Cash Flow

Fully customizable DCF calculator online for Neogen Corp.

Years

Calculation mode

= -$1.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$125M	-$126M	-$127M	-$129M	-$130M	-$131M	-$132M	-$134M	-$135M	-$136M	-$137M	-$1.4B
DCF		-$115M	-$105M	-$97M	-$89M	-$81M	-$75M	-$69M	-$63M	-$58M	-$53M	-$530M
Value	-$1.3B

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.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	12%	11%	12%	16%	15%	14%	13%	9%	-3%	-1%	-6%
ROA	-	12%	13%	12%	11%	10%	8%	6%	1%	1%	1%
ROE	-	9%	9%	11%	9%	8%	7%	5%	-1%	-0%	-1%

Bad Net Margins (-5.81%)

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

Safety and Stability

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.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	0.11	-	-	-	-	-	0	-72.79	-23.7	-7.12
Debt over Equity	0.01	0.01	-	-	-	-	-	0	0.57	0.57	0.28
Growth Stability	-	-	-	100%	100%	100%	100%	80%	-41%	-33%	-41%

Good Debt/FCF ratio (-7.12)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.28)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-41%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	13%	13%	11%	3%	1%	12%	13%	56%	12%	23%
Earnings YoY growth	-	9%	20%	44%	-5%	-1%	2%	-21%	-147%	-59%	-14%
Equity YoY growth	-	15%	17%	19%	14%	14%	16%	6%	253%	0%	51%
FCF YoY growth	-	-38%	116%	5%	2%	26%	-12%	-20%	-157%	208%	-3%