Neogen Corporation

Neogen Corporation

NEOGยทNASDAQ

$8.81

-1.2%
HealthcareMedical - Diagnostics & Research

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 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 to detect the presence of adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed producers and 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, and veterinary vaccines. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, 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 used to maintain sanitary conditions and limit the potential hazards of bacteria, fungi, and viruses. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.

At a Glance

Live Snapshot
Market Cap$1.92B
EPS-5.0300
P/E Ratio-1.75
Earnings Date07/28/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -1.8).

Valuation inputs: P/E -1.8, earnings yield N/A, momentum -1.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -52.7%, ROIC +0.3%).

Profitability stack: net margin -1.2%, ROE -52.7%, ROIC +0.3%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +39.9%, momentum -1.2%, net margin -1.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Neogen Corporation Market vs Earnings Trajectory

NEOG ยท NASDAQ

Loading price and EPS data...

Neogen Corporation

Neogen Corporation Fair Value Envelope

NEOG ยท NASDAQ

Our analysis suggests that NEOG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $8.81, this represents a potential HIDDEN relative to our calculated worth for Neogen Corporation.

Intrinsic Value
Current Price: $8.81
3Y-1218.0%
5Y-982.0%
10Y-1497.0%
3Y+70.0%
5Y+114.0%
10Y+178.0%
3Y-2361.0%
5Y-1936.0%
10Y-3087.0%
3Y-14.0%
5Y-32.0%
10Y+65.0%
3Y-206.0%
5Y-175.0%
10Y-320.0%
3Y+247.0%
5Y+332.0%
10Y+662.0%
Neogen Corporation

Neogen Corporation Profit Bridge

NEOG ยท NASDAQ
Revenue894.66M
Cost of Goods Sold (473.29M)
Gross Profit421.38M
Operating Expenses (411.96M)
Operating Income9.42M
Interest Expense (71.62M)
Other Income/Expense-1.14B
Pretax Income-1.13B
Income Tax (-41.07M)
Net Income-1.09B
Net Income
-1.09B

Profitability Analysis

Gross Margin

47.1%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

1.1%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

-122.1%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

47.10%
Gross Profit Margin
-6%
3Y+2.0%
5Y-
10Y-1.0%
1.05%
Operating Profit Margin
-87%
3Y-91.0%
5Y-93.0%
10Y-94.0%
-122.06%
Net Profit Margin
11875%
3Y-1432.0%
5Y-958.0%
10Y-1173.0%
-52.72%
Return on Equity
17498%
3Y-1069.0%
5Y-743.0%
10Y-683.0%
-31.71%
Return on Assets
15211%
3Y-752.0%
5Y-525.0%
10Y-492.0%
0.28%
Return on Invested Capital
-76%
3Y-95.0%
5Y-96.0%
10Y-97.0%
NEOG

Neogen Corporation Cash Conversion Engine

NEOG ยท NASDAQ
Net Income-1.09B
Depreciation & Amortization125.67M
Stock-Based Compensation17.29M
Change in Working Capital-5.93M
Others1.07B
Capital Expenditures-104.59M
Free Cash Flow-46.35M

Cash Flow Quality Analysis

FCF Conversion Rate

4.2%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

179.6%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

+39.1%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$5.93M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

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Neogen Corporation Funding & Solvency Profile

NEOG ยท NASDAQ
Cash & Cash Equivalents159.90M
Net Receivables137.10M
Inventory161.70M
Other Current Assets131.30M
Total Current Assets590 M
Property, Plant & Equipment347.60M
Goodwill & Intangible Assets2.39B
Long-Term Investments0.00
Other Non-Current Assets31.80M
Total Non-Current Assets379 M
Total Assets
3.36B

Financial Health Analysis

Current Ratio

3.92x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.60x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

439 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

18% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Neogen Corporation Street Expectations Map

NEOG ยท NASDAQ

Wall Street analysts project that NEOG stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 11.00, with estimates ranging from a low of 10.00 to a high of 12.00.

Lowest Target
10.00
13.51%
Consensus Target
11.00
24.86%
Highest Target
12.00
36.21%

The consensus 1-year price target stands at 11.00, with estimates ranging from a low of 10.00 to a high of 12.00.

Analyst Consensus Analysis

Upside Potential

+24.9%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

18.2% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Neogen Corporation Insider Positioning

NEOG ยท NASDAQ

During the last 12 months, insiders have purchased $3K worth of NEOG shares, with no selling activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

209

2.01K

Sold

0

0.00

Net Activity

+2K

+$2K

6-9 Months

Bought

177

1.11K

Sold

0

0.00

Net Activity

+1K

+$1K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
NM

Nassif Mikheal

Director, Officer: Ceo

386 sharesโ€ข5 transactions

$3K

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $3K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

โˆž:1

Perfect buy/sell ratio. Only buying activity with zero sellingโ€”the most bullish possible insider signal.

Insider Participation

High Buying

1 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Unanimous insider buying: Zero selling combined with active buying is rare and typically very bullish. Insiders appear to see significant upside with limited downside risk.

No Dividend Yield Data

NEOG has not reported any dividend yield values in the available annual periods.

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neog Dividend History

NEOG
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%