Neogen (NEOG) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: N/A
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -2.77%
• EPS Growth: -4327.53%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.10
• Shares Outstanding: 217,525,990
• 10 Day Avg. Volume: 5,675,427
• 30 Day Avg. Volume: 4,136,928
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -26.28
• Enterprise Value/Market Cap: -0.07
• Enterprise Value/Revenue: -0.17
• Enterprise Value/Gross Profit: -0.43
• Enterprise Value/Ebitda: 0.34
• 1Y Price Target: $10.67
• Price Target Upside: 13.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.27
• Revenue Forecast (FY): $844.50M

• Rating: 56 Neutral
• Price Target: $10.00 ▲(6.50% Upside)

The score is held back primarily by weakened financial performance (losses and margin compression) and valuation limits from a negative P/E. Offsetting factors include constructive earnings-call momentum with raised guidance and improving margins/cost actions, plus a strong technical uptrend, though overbought readings add near-term risk.

Positive Factors

Recurring Consumable Revenue

Neogen’s core business sells repeat-purchase consumables (test kits, media, reagents, sampling devices) tied to routine food/animal testing. This creates durable, recurring revenue and strong customer stickiness, supporting predictable demand and long‑term attach rates for instruments.

Raised Guidance & Cost Actions

Management raised FY26 revenue and EBITDA guidance after sequential margin recovery and execution of ~$20M annualized cost savings. Sustained savings and disciplined commercial/process changes can structurally improve margins and cash generation if execution continues across the year.

Petrifilm Integration Progress

Progress on Petrifilm manufacturing and validation reduces integration risk and supports long‑term revenue/consumable capture. Owning a proven culture media franchise can enhance gross margins and recurring consumable sales once scale and internal production stabilize by the planned 2027 timeline.

Negative Factors

Elevated Leverage

Gross debt near $800M constrains financial flexibility and heightens refinancing and interest risks if earnings remain depressed. Deleveraging plans rely on divestitures/timing, making leverage a durable headwind that could limit investment in growth or prolong margin pressure if cash conversion falters.

Revenue & Margin Deterioration

Material revenue declines and a meaningful gross margin contraction signal structural pressure from pricing, mix, or cost absorption. Persistently lower margins impair return on capital and make it harder to generate operating leverage, prolonging recovery even with near‑term cost cuts.

Inconsistent Cash Generation

While operating cash flow improved and FCF turned positive TTM, volatility and recent declines make cash generation unreliable. Inconsistent free cash flow weakens the company’s ability to service debt, fund Petrifilm rollout, or absorb shocks without further asset sales or capital constraints.

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 generates revenue through multiple key streams within its Food Safety and Animal Safety segments. The Food Safety division primarily earns money by selling diagnostic tests, food safety products, and equipment used to detect contaminants and pathogens in food products. This includes tests for pathogens like Salmonella and E. coli, as well as allergen testing kits. The Animal Safety segment generates revenue through the sale of veterinary pharmaceuticals, supplements, and diagnostic tests for livestock and pets. Additionally, Neogen benefits from recurring revenue through the sale of consumables used in its testing products and services. Significant partnerships with food manufacturers, agricultural producers, and veterinary practices bolster its revenue, as these collaborations often lead to long-term contracts and increased product adoption. Furthermore, the company's investments in research and development facilitate the introduction of new products, enhancing its market presence and driving further sales.

Neogen Financial Statement Overview

Summary

Income statement trends are weak with meaningful deterioration in revenue and a swing to significant losses alongside gross margin compression. The balance sheet is mixed—equity provides some cushion, but leverage has risen and returns are deeply negative. Cash flow is a relative bright spot with positive operating cash flow and free cash flow turning positive in TTM, but consistency remains a concern versus the size of losses.

Income Statement

Results have deteriorated meaningfully. Revenue is slightly down in the most recent annual period and sharply lower in TTM (Trailing-Twelve-Months) versus the prior year, while profitability has swung from modestly positive operating performance (2023–2024) to significant losses in 2025 and TTM. Gross margin has also compressed from ~50% (2023–2024) to ~38% in TTM, indicating weaker pricing, mix, or cost absorption. Strength: the business historically showed solid growth and healthy gross margins, but current loss levels and negative margins dominate the near-term outlook.

Balance Sheet

Balance sheet support is mixed. Equity remains sizable relative to total assets, which provides some cushioning, but leverage increased materially from 2021–2022 to 2023–2025 with total debt now near $0.8–$0.9B. Returns on equity are deeply negative in 2025 and TTM (Trailing-Twelve-Months), reflecting that the capital base is not currently generating profits. Strength: the company is not showing an extreme debt load relative to equity in recent annual periods, but the earnings decline raises risk that leverage becomes more burdensome if losses persist.

Cash Flow

Cash generation is better than reported earnings but still uneven. Operating cash flow is positive across periods and improved in TTM (Trailing-Twelve-Months), and free cash flow turned positive in TTM after being negative in 2023–2025 annual periods. However, free cash flow has been volatile and recently declined sharply on a growth basis, and cash flow is not consistently strong enough to offset the magnitude of net losses. Strength: positive operating cash flow provides some flexibility, but the inconsistency in free cash flow is a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	894.66M	924.22M	822.45M	527.16M	468.46M
Gross Profit	421.38M	462.63M	405.95M	243.01M	215.06M
EBITDA	-937.75M	182.60M	122.30M	83.90M	96.31M
Net Income	-1.09B	-9.42M	-22.87M	48.31M	60.88M
Balance Sheet
Total Assets	3.44B	4.55B	4.55B	992.93M	920.19M
Cash, Cash Equivalents and Short-Term Investments	129.00M	170.94M	245.57M	381.05M	381.09M
Total Debt	912.61M	906.24M	897.53M	0.00	1.29M
Total Liabilities	1.37B	1.40B	1.42B	105.56M	79.81M
Stockholders Equity	2.07B	3.14B	3.13B	887.37M	840.38M
Cash Flow
Free Cash Flow	-46.35M	-76.16M	-24.73M	43.61M	54.38M
Operating Cash Flow	58.24M	35.26M	41.03M	68.04M	81.09M
Investing Cash Flow	-99.19M	-29.31M	201.04M	-97.23M	-105.56M
Financing Cash Flow	-1.60M	1.92M	-118.08M	6.81M	33.54M

Neogen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEOG, the sentiment is Positive. The current price of 9.39 is above the 20-day moving average (MA) of 7.75, above the 50-day MA of 6.82, and above the 200-day MA of 5.92, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 75.84 is Negative, neither overbought nor oversold. The STOCH value of 71.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEOG.

Neogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRAL	70 Outperform	$4.08B	-9.02	-16.83%	―	20.53%	82.91%
NEOG	56 Neutral	$2.04B	-3.38	-25.25%	―	-2.77%	-4327.53%
NEO	55 Neutral	$1.71B	-14.89	-12.99%	―	10.10%	-44.29%
FLGT	53 Neutral	$864.62M	-19.96	-3.80%	―	13.60%	74.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OPK	50 Neutral	$998.01M	-5.27	-13.32%	―	-9.75%	-31.28%
MYGN	41 Neutral	$569.54M	-1.41	-72.52%	―	0.21%	-233.51%

Neogen Corporate Events

Neogen Appoints New CFO to Drive Growth

On October 30, 2025, Neogen Corporation announced the appointment of Bryan Riggsbee as Senior Vice President and Chief Financial Officer, effective November 3, 2025. Riggsbee brings over 25 years of financial leadership experience from the diagnostics and healthcare industries, having previously served as CFO at bioMérieux and Myriad Genetics. His appointment is expected to strengthen Neogen’s global finance organization and support its strategy for sustainable growth and operational excellence.

The most recent analyst rating on (NEOG) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.

Neogen Shareholders Elect Directors, Reject Executive Pay

On October 23, 2025, Neogen held its 2025 Annual Meeting of Shareholders, where 195,086,461 of the 217,298,626 shares outstanding were present and voted. During the meeting, shareholders elected directors, did not approve the compensation of named executive officers, and ratified the appointment of BDO USA, P.C. as the company’s auditors for the fiscal year ending May 31, 2026.

The most recent analyst rating on (NEOG) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.