Neogen (NEOG) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -2.50%
• EPS Growth: -30760.27%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.05
• Shares Outstanding: 217,038,270
• 10 Day Avg. Volume: 7,237,484
• 30 Day Avg. Volume: 8,131,181
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: 2.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.35
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.00
• Price Target Upside: 50.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Neogen's overall stock score reflects significant financial struggles, with major concerns around profitability and declining revenues. While technical indicators and valuation metrics are weak, recent corporate events and some positive earnings call highlights provide a moderate offset. The company's low leverage and strategic actions offer some hope, but immediate financial challenges dominate.

Positive Factors

Financial Performance

The stock is trading at its lowest valuation levels in company history, presenting potential upside.

Leadership and Management

The new facility is on schedule, showcasing proper leadership for executing Petrifilm manufacturing.

Negative Factors

Debt and Leverage

Concerns about Neogen’s rising leverage ratio and debt covenants are weighing on the stock.

Macroeconomic Factors

P&L risks to consider include tariffs, duplicative costs of the new facility, headwinds from the genomics business wind-down, and macro uncertainty.

Neogen Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Neogen Corporation makes money primarily through the sale of its diagnostic test kits and related products, which are used extensively in the food production and processing industries to ensure safety and compliance with regulatory standards. The company's revenue streams are heavily reliant on its two major segments: Food Safety and Animal Safety. Within the Food Safety segment, Neogen generates income by offering solutions that help food producers and processors detect contaminants and ensure clean production environments. In the Animal Safety segment, revenue is derived from the sale of veterinary pharmaceuticals, vaccines, and disinfection products that support animal health and productivity. Additionally, strategic partnerships and collaborations with food producers, agricultural companies, and research institutions enhance its market reach and contribute to its earnings.

Neogen Financial Statement Overview

Summary

Neogen faces significant financial challenges, with substantial net losses and declining revenues. Despite a solid equity base and positive operating cash flow, negative profitability metrics and declining free cash flow are concerning. The balance sheet remains stable with low leverage, providing some buffer.

Income Statement

The income statement reveals a concerning performance for Neogen, with a negative net income of $485 million in TTM, indicating significant losses. The gross profit margin is approximately 48.8% for TTM, which is strong, but the negative EBIT and EBITDA margins reflect operational challenges. The revenue has decreased by 2% over the past year, highlighting a lack of growth.

Balance Sheet

Neogen's balance sheet shows a moderate financial position. The debt-to-equity ratio is approximately 0.34, reflecting relatively low leverage. However, the return on equity is negative due to the net loss. The equity ratio stands at around 65.9%, indicating a strong equity base relative to total assets.

Cash Flow

The cash flow analysis indicates that Neogen has positive operating cash flow, which is a positive sign. However, the free cash flow growth rate is negative, indicating a decline in free cash availability. The operating cash flow to net income ratio is positive, suggesting cash generation despite net losses.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
924.22M	822.45M	527.16M	468.46M	418.17M
	Gross Profit
463.90M	405.95M	243.01M	215.06M	196.28M
	EBIT
58.66M	37.52M	34.92M	53.13M	49.13M
	EBITDA
182.60M	122.30M	107.89M	98.30M	85.92M
	Net Income Common Stockholders
-9.42M	-22.87M	48.31M	60.88M	59.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.94M	245.57M	381.05M	381.09M	343.67M
	Total Assets
4.55B	4.55B	992.93M	920.19M	797.18M
	Total Debt
906.24M	900.00M	986.69M	1.29M	1.05M
	Net Debt
735.63M	736.76M	605.64M	-379.80M	-342.62M
	Total Liabilities
1.40B	1.42B	105.56M	79.81M	72.00M
	Stockholders Equity
3.14B	3.13B	887.37M	840.38M	725.18M
Cash Flow		Free Cash Flow
-76.16M	-24.73M	43.61M	54.38M	61.83M
	Operating Cash Flow
35.26M	41.03M	68.04M	81.09M	85.88M
	Investing Cash Flow
-29.31M	201.04M	-97.23M	-105.56M	-88.78M
	Financing Cash Flow
1.92M	-118.08M	6.81M	33.54M	29.41M

Neogen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEOG, the sentiment is Negative. The current price of 5.99 is above the 20-day moving average (MA) of 5.22, below the 50-day MA of 7.43, and below the 200-day MA of 12.47, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 84.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEOG.

Neogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHC	68 Neutral	$3.65B	148.38	5.88%	―	2.78%	-54.72%
CSTL	65 Neutral	$479.86M	30.59	-1.20%	―	38.43%	86.19%
FLGT	59 Neutral	$572.95M	―	-3.61%	―	1.71%	76.00%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
NEO	52 Neutral	$989.66M	―	-8.57%	―	10.10%	8.79%
MYGN	51 Neutral	$670.09M	―	-13.84%	―	12.15%	61.33%
NEOG	45 Neutral	$1.19B	―	-16.71%	―	-2.50%	-30760.27%

Neogen Corporate Events

Neogen Hosts Investors, Discusses Petrifilm Transition

On April 22, 2025, Neogen Corporation hosted investors in Lansing, Michigan, to discuss its Petrifilm product line. Neogen is transitioning the production of Petrifilm to a new state-of-the-art facility in Lansing, ensuring a stable supply and maintaining product performance. The transition involves using modern equipment and expertise from previous manufacturing setups in Poland. The company is also addressing potential tariff impacts and restructuring its Genomics business, with expected financial benefits from divestitures and refinancing.

Spark’s Take on NEOG Stock

According to Spark, TipRanks’ AI Analyst, NEOG is a Neutral.

Neogen’s overall stock score reflects its financial struggles and bearish technical indicators, which are major concerns. Despite strategic initiatives and efforts in integration and leadership, the company’s profitability challenges and macroeconomic uncertainties weigh heavily. Valuation metrics also remain weak, contributing to a cautious outlook.

To see Spark’s full report on NEOG stock, click here.

Neogen CEO John Adent to Step Down

On April 9, 2025, Neogen Corporation announced that CEO and President John Adent will be stepping down, continuing in his role until a successor is appointed. The board has formed a special committee to oversee the search for a new CEO while supporting ongoing strategic initiatives. Adent will transition to a Special Advisor role until October 31, 2025, maintaining his salary and benefits. The transition aims to ensure a smooth leadership change as Neogen continues to focus on growth and profitability in the food safety market.

Spark’s Take on NEOG Stock

According to Spark, TipRanks’ AI Analyst, NEOG is a Neutral.

Neogen faces significant profitability and cash flow challenges despite a strong balance sheet. Technical indicators are weak, and valuation is unattractive with negative earnings. While restructuring and loan refinancing offer some positives, immediate financial concerns dominate the outlook.

To see Spark’s full report on NEOG stock, click here.

Neogen Announces Successful Loan Refinancing

On April 4, 2025, Neogen Corporation announced the successful refinancing of its term loan and revolving credit facility, extending the maturity to April 2030. The refinancing, which involved a $450 million term loan and a $250 million revolving credit facility, results in a lower interest rate and provides the company with additional balance sheet flexibility, reflecting its favorable credit profile and strong banking partnerships.

Spark’s Take on NEOG Stock

According to Spark, TipRanks’ AI Analyst, NEOG is a Neutral.

Neogen’s overall score is weighed down by profitability challenges and weak technical indicators. While the company shows potential with strategic initiatives and revenue growth, immediate financial and operational concerns take precedence. The absence of debt and focus on food security initiatives provide some stability, but they are not enough to offset the current financial and valuation challenges.

To see Spark’s full report on NEOG stock, click here.