NeoGenomics (NEO) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 9.70%
• EPS Growth: -30.94%
• Country: US
• Employees: 2,200
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.03
• Shares Outstanding: 129,178,620
• 10 Day Avg. Volume: 2,299,729
• 30 Day Avg. Volume: 2,512,815
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: -24.41
• 1Y Price Target: $10.67
• Price Target Upside: 35.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 50 Neutral
• Price Target: $8.00 ▲(1.78% Upside)

NeoGenomics faces significant challenges with profitability and cash flow, impacting its valuation. While technical indicators show some positive momentum, the negative P/E ratio and lack of dividend yield weigh heavily. The earnings call highlighted strong clinical growth but also significant challenges in the pharma segment, leading to cautious guidance.

Positive Factors

Clinical Revenue Growth

Strong growth in clinical revenue indicates robust demand and successful market penetration, supporting long-term revenue stability and expansion.

NGS Testing Expansion

The expansion of NGS testing highlights NeoGenomics' competitive edge in advanced diagnostics, positioning it well for future growth in precision medicine.

Cash Flow Improvement

Improved cash flow from operations enhances financial flexibility, enabling strategic investments and debt reduction, which supports long-term financial health.

Negative Factors

Pharma Revenue Challenges

Challenges in the pharma segment due to market conditions could hinder overall revenue growth, affecting the company's ability to meet financial targets.

Revised Financial Guidance

Lowered revenue guidance reflects ongoing challenges, potentially impacting investor confidence and the company's strategic growth plans.

Profitability Challenges

Sustained profitability issues due to high expenses could limit reinvestment capabilities and affect long-term financial sustainability.

NeoGenomics Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

NeoGenomics generates revenue primarily through its laboratory services, which include various cancer testing and diagnostic assays. The company charges healthcare providers, including hospitals and oncologists, for each test conducted. Key revenue streams include molecular testing, which encompasses a wide array of genetic and genomic tests, and anatomic pathology services. Additionally, NeoGenomics collaborates with pharmaceutical companies for clinical trial testing, providing another revenue source through partnerships. The company's focus on expanding its test menu and enhancing its capabilities in precision medicine contributes to its earnings, along with its strategic partnerships with healthcare institutions and research organizations.

NeoGenomics Financial Statement Overview

Summary

NeoGenomics shows revenue growth but struggles with profitability and cash flow. The stable balance sheet offers some financial cushion, yet negative free cash flow and net income margins indicate significant challenges.

Income Statement

NeoGenomics has been experiencing consistent revenue growth over the years, with a notable increase of 11.6% from 2023 to 2024 and 4.3% in TTM (Trailing-Twelve-Months). However, the company is facing challenges in profitability, with negative EBIT and net income margins. The gross profit margin has remained relatively stable around 43.9% in TTM, but high operating expenses are impacting overall profitability.

Balance Sheet

The company maintains a relatively stable financial position with a debt-to-equity ratio of 0.48 in TTM, indicating moderate leverage. However, the equity ratio has slightly decreased to 61.3% in TTM, suggesting some reduction in equity compared to total assets. The negative net income has adversely affected the return on equity, indicating challenges in generating shareholder value.

Cash Flow

NeoGenomics has shown improvement in operating cash flow, turning positive in TTM. However, free cash flow remains negative, indicating challenges in covering capital expenditures and other cash outflows. The free cash flow to net income ratio highlights the company's difficulty in translating earnings into cash flow, which could pose liquidity risks if not managed effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	689.19M	660.57M	591.64M	509.73M	484.33M	444.45M
Gross Profit	302.64M	290.10M	244.60M	187.90M	187.06M	185.89M
EBITDA	-48.48M	-1.51M	-17.61M	-82.33M	-65.40M	34.85M
Net Income	-104.04M	-78.73M	-87.97M	-144.25M	-8.35M	4.17M
Balance Sheet
Total Assets	1.39B	1.64B	1.68B	1.74B	1.87B	988.33M
Cash, Cash Equivalents and Short-Term Investments	163.69M	386.84M	415.20M	437.99M	515.39M	296.26M
Total Debt	411.76M	605.33M	611.68M	610.93M	612.79M	218.22M
Total Liabilities	539.91M	735.70M	739.69M	742.01M	761.50M	294.04M
Stockholders Equity	854.04M	902.34M	941.54M	998.02M	1.11B	694.29M
Cash Flow
Free Cash Flow	-19.17M	-34.04M	-30.70M	-96.88M	-90.86M	-27.64M
Operating Cash Flow	14.05M	7.02M	-1.95M	-65.99M	-26.72M	1.46M
Investing Cash Flow	-14.74M	12.86M	76.71M	517.00K	-632.37M	-159.44M
Financing Cash Flow	-199.62M	4.65M	4.55M	11.83M	725.28M	235.60M

NeoGenomics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.86 is below the 20-day moving average (MA) of 8.11, above the 50-day MA of 6.89, and below the 200-day MA of 9.84, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 33.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEO.

NeoGenomics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLGT	63 Neutral	676.46M	-13.21	-4.57%	―	4.31%	69.57%
CSTL	59 Neutral	657.62M	-63.93	-2.08%	―	20.40%	-165.41%
GRAL	59 Neutral	1.68B	-3.73	-80.97%	―	22.37%	86.08%
MYGN	52 Neutral	718.30M	-1.81	-101.83%	―	3.83%	-137.31%
OPK	52 Neutral	1.17B	-5.73	-13.66%	―	-7.31%	29.84%
NEO	50 Neutral	$1.02B	―	-11.76%	―	9.70%	-30.94%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

NeoGenomics Corporate Events

NeoGenomics Board Member Elizabeth Floegel Resigns

On August 5, 2025, Elizabeth Floegel resigned from the Board of Directors of NeoGenomics, Inc., effective immediately. Her resignation was not due to any disagreements with the company’s operations, policies, or practices.

NeoGenomics Expands Board, Appoints New Director

On June 19, 2025, NeoGenomics, Inc. expanded its Board of Directors from nine to ten members and appointed Marjorie C. Green as a new director. Dr. Green, who is currently Senior Vice President and Head of Oncology, Global Clinical Development at Merck, brings extensive experience in oncology and business development. Her appointment is expected to enhance NeoGenomics’ strategic direction in the precision oncology market, aligning with the company’s mission to improve patient care.