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NeoGenomics (NEO)
NASDAQ:NEO
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NeoGenomics
(NASDAQ:NEO)
52Neutral
Positive Factors
Clinical Revenue Growth
Clinical revenue showed growth, indicating a positive contribution to the overall revenue.
Underestimated Value
Shares are undervalued and not reflective of the value of the entity, trading at 1.4 times NTM revenue, a 13-year low.
Valuation Support
Valuation provides downside support on sharp pullback, with NGS pipeline execution being key to recovery.
Negative Factors
Competitive Market Challenges
The competitive landscape in the oncology diagnostics market is increasing, making growth expectations unlikely to materialize.
Management Turnover Risk
Recent management changes increase the risk of further senior management turnover.
Overly Optimistic Guidance
The revenue growth forecast for 2025 appears overly optimistic and is likely to be reduced.
NeoGenomics (NEO) vs. S&P 500 (SPY)
Market Cap
$990.95M
Dividend YieldN/A
Average Volume (3M)2.66M
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth10.10%
EPS Growth8.79%
CountryUS
Employees2,200
SectorHealthcare
Sector Strength56
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)0.00
Shares Outstanding128,694,500
10 Day Avg. Volume4,243,606
30 Day Avg. Volume2,664,842
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.47
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.02
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.05Price Target Upside69.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
NeoGenomics Business Overview & Revenue Model
Company DescriptionNeoGenomics, Inc. is a leading cancer diagnostics and pharmaceutical services company providing comprehensive testing services to hospitals, pathologists, oncologists, and other healthcare providers across the United States. The company specializes in cancer genetics testing and information services, offering a broad menu of diagnostic tests that include cytogenetics, flow cytometry, FISH, IHC, and molecular testing. It aims to improve patient care through high-quality genetic and molecular testing services, enabling a better understanding of cancer and patient outcomes.
How the Company Makes MoneyNeoGenomics generates revenue primarily through its clinical services and pharma services segments. The clinical services segment provides cancer diagnostic testing to healthcare providers, with revenue coming from the fees charged for each test. This includes a wide array of testing services such as oncology-focused tests that diagnose and monitor cancer, as well as genetic tests that help in understanding the cancer's profile. The pharma services segment caters to pharmaceutical companies and research institutions, providing services such as clinical trial testing, research, and development support. Revenue in this segment is derived from contractual agreements with pharmaceutical firms for services like biomarker discovery, clinical trial support, and companion diagnostic development. Key factors contributing to their earnings include the growing demand for personalized medicine and targeted therapies in oncology, partnerships with leading pharmaceutical companies, and a robust portfolio of proprietary and exclusive tests.
NeoGenomics Financial Statement Overview
Summary
NeoGenomics is on a growth trajectory with increasing revenues but faces significant profitability challenges. The company's high leverage and negative cash flow highlight the need for improved operational efficiency and cost control. Strategic financial management is essential to navigate these challenges and capitalize on growth opportunities.Income Statement
NeoGenomics has shown a steady increase in total revenue over recent years, with a TTM revenue of $672 million, indicating a growth trajectory. However, persistent negative EBIT and net income indicate ongoing profitability challenges, with negative margins across gross, EBIT, and net profit. The company needs to focus on cost management and operational efficiency to achieve profitability.―
Balance Sheet
The company maintains a healthy equity ratio with stockholders' equity representing a significant portion of total assets. However, the debt-to-equity ratio remains elevated, reflecting a reliance on debt financing. Positive equity growth is a strength, but the high leverage poses potential risks, particularly given the current lack of profitability.55
Cash Flow
Operating cash flow remains positive in the TTM, an improvement from previous periods, although free cash flow is still negative due to high capital expenditures. The company has shown improvement in cash management, but achieving positive free cash flow is critical for long-term sustainability.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 660.57M | 591.64M | 509.73M | 484.33M | 444.45M | Gross Profit |
| 290.10M | 244.60M | 187.90M | 187.06M | 185.89M | EBIT |
| -92.11M | -107.74M | -153.11M | -9.99M | -2.13M | EBITDA |
| -1.51M | -17.61M | -78.63M | 52.08M | 34.85M | Net Income Common Stockholders |
| -78.73M | -87.97M | -144.25M | -8.35M | 4.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 386.84M | 415.20M | 437.99M | 515.39M | 296.26M | Total Assets |
| 1.64B | 1.68B | 1.74B | 1.87B | 988.33M | Total Debt |
| 605.33M | 611.68M | 610.93M | 612.79M | 218.22M | Net Debt |
| 238.32M | 269.19M | 347.75M | 295.96M | -10.49M | Total Liabilities |
| 735.70M | 739.69M | 742.01M | 761.50M | 294.04M | Stockholders Equity |
| 902.34M | 941.54M | 998.02M | 1.11B | 694.29M |
| Cash Flow | Free Cash Flow | |||
| -34.04M | -30.70M | -96.88M | -90.86M | -27.64M | Operating Cash Flow |
| 7.02M | -1.95M | -65.99M | -26.72M | 1.46M | Investing Cash Flow |
| 12.86M | 76.71M | 517.00K | -632.37M | -159.44M | Financing Cash Flow |
| 4.65M | 4.55M | 11.83M | 725.28M | 235.60M |
NeoGenomics Technical Analysis
Negative
7.70
Price Trends
9.46
Negative
12.40
Negative
13.94
Negative
Market Momentum
-0.59
Positive
40.60
Neutral
34.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEO, the sentiment is Negative. The current price of 7.7 is below the 20-day moving average (MA) of 8.90, below the 50-day MA of 9.46, and below the 200-day MA of 13.94, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 34.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEO.
NeoGenomics Risk Analysis
NeoGenomics disclosed 40 risk factors in its most recent earnings report. NeoGenomics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NeoGenomics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $835.21M | 13.02 | 21.57% | ― | 25.92% | ― | |
70 Outperform | $558.15M | 30.59 | 4.31% | ― | 51.09% | ― | |
59 Neutral | $633.98M | ― | -3.76% | ― | -1.99% | 74.89% | |
52 Neutral | $990.95M | ― | -8.57% | ― | 10.10% | 8.79% | |
52 Neutral | $5.35B | 3.81 | -42.57% | 2.86% | 17.10% | 1.33% | |
51 Neutral | $696.82M | ― | -17.15% | ― | 12.15% | 61.33% | |
50 Neutral | $930.10M | ― | -3.04% | ― | -13.79% | 82.82% |
* Healthcare Sector Average
Performance Comparison
NEO
NeoGenomics
7.84
-7.67
-49.45%
MYGN
Myriad Genetics
7.56
-12.41
-62.14%
OPK
Opko Health
1.36
0.04
3.03%
CDNA
CareDx
15.17
4.99
49.02%
FLGT
Fulgent Genetics
20.54
-0.95
-4.42%
CSTL
Castle Biosciences
18.75
-5.66
-23.19%
NeoGenomics Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -22.77%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, with significant growth in revenue and EBITDA, expansion through acquisitions, and strong performance in clinical testing volumes and NGS revenue. However, there were challenges in the non-clinical sector, particularly in pharma and biotech spending. Despite these challenges, the company's strategic initiatives and market positioning in oncology provide a robust outlook.Q1-2025 Updates
Positive Updates
Record Revenue and EBITDA Growth
NeoGenomics reported revenues of $168 million and adjusted EBITDA of $7.1 million for Q1 2025, marking a 100% improvement over the prior year and the seventh consecutive quarter of positive adjusted EBITDA.
Clinical Testing Volume Increase
Clinical testing volumes increased by 8% compared to the previous year, with a 3% increase in revenue per test.
NGS Revenue Growth
NGS revenue grew by 18% in Q1 2025, with five new NGS products accounting for 22% of total clinical revenue.
Pathline Acquisition
NeoGenomics acquired Pathline, expanding their capabilities in the Northeast, expected to contribute $12-14 million in revenue for 2025.
Negative Updates
Non-Clinical Revenue Decline
Non-clinical revenue declined by $3.4 million or 15.8%, impacted by macroeconomic factors such as tariffs and uncertainties in NIH funding.
Challenges in Pharma Sector
Pharma and biotech spending has not rebounded, impacting non-clinical revenues. RaDaR 1.0 trials have wrapped up, and new contracts cannot be sold.
Company Guidance
During the NeoGenomics First Quarter 2025 Conference Call, the company provided updated guidance for the fiscal year 2025. NeoGenomics raised its full-year revenue guidance to a range of $747 million to $759 million, reflecting 13% to 15% growth, driven by strong clinical volume growth and the recent acquisition of Pathline. The company reaffirmed its adjusted EBITDA guidance of $55 million to $58 million. Key metrics highlighted included first-quarter revenue of $168 million, a 102% year-over-year increase in adjusted EBITDA to $7.1 million, and an 8% increase in clinical testing volumes. The acquisition of Pathline is expected to contribute $12 million to $14 million in revenue for 2025, with anticipated incremental revenue and cost synergies materializing in 2026 and beyond. The company also noted ongoing challenges in the non-clinical segment due to broader macroeconomic conditions but expressed confidence in offsetting these with strong clinical performance.NeoGenomics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
NeoGenomics Promotes Warren Stone to President & COO
Positive
Mar 18, 2025
On March 18, 2025, NeoGenomics announced the promotion of Warren Stone to President & Chief Operating Officer, effective April 1, 2025. Stone, who joined the company in November 2023, has played a crucial role in driving the company’s long-term growth strategy, resulting in significant revenue growth for the Clinical division. In his new role, Stone will oversee lab operations, data solutions, and enterprise operations, while maintaining his commercial responsibilities. This leadership change aligns with NeoGenomics’ strategy to enhance growth and profitability, while Melody Harris, the current Chief Operations Officer, will depart by the end of May 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.