Neogen (NEOG) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 4.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -2.77%
• EPS Growth: -4327.53%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.17
• Shares Outstanding: 217,298,630
• 10 Day Avg. Volume: 3,250,657
• 30 Day Avg. Volume: 4,400,384
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -27.42
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: -2.15
• 1Y Price Target: $8.17
• Price Target Upside: 26.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): $823.30M

• Rating: 51 Neutral
• Price Target: $6.00 ▼(-7.26% Downside)

Neogen's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings weigh heavily. The absence of a dividend yield further affects its attractiveness.

Positive Factors

Animal Safety Segment Growth

The Animal Safety segment's growth indicates strong demand for biologics and wound care products, suggesting a robust market position and potential for sustained revenue increases.

Cost-Cutting Measures

The significant cost-cutting measures are expected to improve operational efficiency and profitability, enhancing the company's ability to invest in growth areas.

Free Cash Flow Improvement

Improved free cash flow indicates better cash management and operational efficiency, providing the company with greater financial flexibility for strategic investments.

Negative Factors

Food Safety Segment Decline

The decline in the Food Safety segment suggests challenges in maintaining market share and could impact overall revenue stability if not addressed.

APAC Region Challenges

Significant declines in the APAC region highlight regional market challenges, potentially affecting global revenue growth and requiring strategic adjustments.

Inventory and Sample Collection Issues

Ongoing inventory and production inefficiencies can erode margins and profitability, necessitating operational improvements to sustain financial health.

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

Neogen faces significant financial challenges with declining revenue and profitability. The income statement shows negative growth and margins, while the balance sheet reflects poor returns on equity despite reduced leverage. Cash flow improvements are overshadowed by ongoing net losses, indicating potential liquidity issues.

Income Statement

Neogen's income statement reveals significant challenges. The company has experienced negative revenue growth and declining margins, with the TTM showing a gross profit margin of 46.39% and a net profit margin of -117.61%. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. The consistent decline in revenue and profitability over the periods suggests a need for strategic intervention to reverse these trends.

Balance Sheet

The balance sheet shows a mixed picture. While the debt-to-equity ratio has improved to 0.37 in the TTM, indicating reduced leverage, the return on equity remains negative at -43.83%, reflecting poor profitability. The equity ratio is relatively stable, suggesting a solid asset base. However, the negative ROE highlights the company's struggle to generate returns for shareholders.

Cash Flow

Cash flow analysis shows some positive signs, with a significant increase in free cash flow growth in the TTM. The operating cash flow to net income ratio is 0.60, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio of 0.88 suggests that cash generation is not fully covering the net losses, pointing to potential liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	886.89M	894.66M	924.22M	822.45M	527.16M	468.46M
Gross Profit	318.00M	421.38M	462.63M	405.95M	243.01M	215.06M
EBITDA	-885.51M	-937.75M	182.60M	122.30M	83.90M	96.31M
Net Income	-1.04B	-1.09B	-9.42M	-22.87M	48.31M	60.88M
Balance Sheet
Total Assets	3.38B	3.44B	4.55B	4.55B	992.93M	920.19M
Cash, Cash Equivalents and Short-Term Investments	138.88M	129.00M	170.94M	245.57M	381.05M	381.09M
Total Debt	792.53M	912.61M	906.24M	897.53M	1.44M	1.29M
Total Liabilities	1.26B	1.37B	1.40B	1.42B	105.56M	79.81M
Stockholders Equity	2.12B	2.07B	3.14B	3.13B	887.37M	840.38M
Cash Flow
Free Cash Flow	-5.17M	-48.37M	-76.69M	-24.73M	43.61M	54.38M
Operating Cash Flow	84.99M	56.23M	34.73M	41.03M	68.04M	81.09M
Investing Cash Flow	32.19M	-99.19M	-29.31M	201.04M	-97.23M	-105.56M
Financing Cash Flow	-99.95M	421.00K	2.46M	-118.08M	6.81M	33.54M

Neogen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 6.47 is above the 20-day moving average (MA) of 6.15, above the 50-day MA of 5.89, and below the 200-day MA of 6.55, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 79.36 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	64 Neutral	$2.86B	―	-17.68%	―	22.37%	86.08%
FLGT	60 Neutral	$806.85M	―	-3.80%	―	13.60%	74.64%
NEO	53 Neutral	$1.35B	―	-12.99%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOG	51 Neutral	$1.41B	―	-39.71%	―	-2.77%	-4327.53%
MYGN	51 Neutral	$609.62M	―	-72.52%	―	0.21%	-233.51%
OPK	50 Neutral	$1.07B	-5.64	-13.32%	―	-9.75%	-31.28%

Neogen Corporate Events

Neogen Reports Q1 2026 Earnings and Strategic Changes

Neogen Corporation is a global leader in food and animal safety, providing comprehensive solutions across the Food Safety, Livestock, and Pet Health & Wellness markets. The company operates in over 140 countries, leveraging science and technology to enhance global food security and well-being.

Neogen’s Earnings Call: Mixed Sentiments and Strategic Focus

Neogen’s recent earnings call presented a mixed sentiment, reflecting both optimism and challenges. The company reported improvements in revenue and cash flow, alongside strategic cost-cutting measures. However, these positives were tempered by significant challenges in the Food Safety segment and inefficiencies in inventory and sample collection. Regional performance was uneven, with the APAC region facing notable headwinds.

Neogen CFO David Naemura Announces Resignation

Neogen Corporation announced on September 15, 2025, that its Chief Financial Officer and Chief Operating Officer, David Naemura, intends to resign to pursue other opportunities. His decision is not due to any disagreements with the company. Naemura will stay on until the end of the year to assist with the transition to a new CFO. The company has entered into a transition agreement with Naemura, which includes a bonus incentive if he remains until December 31, 2025.

The most recent analyst rating on (NEOG) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.

Neogen Updates Executive Compensation Plan with PSUs

On August 15, 2025, Neogen Corporation announced changes to its fiscal 2026 long-term incentive compensation plan for its executive management team, introducing performance share units (PSUs) alongside stock options. This strategic move aims to align executive compensation with the company’s transformational and strategic goals, as well as market performance. The PSUs are based on performance metrics such as revenue growth, adjusted EBITDA margin expansion, and cash flow conversion over a three-year period. Additionally, stock options were granted to executives, including CEO Mikhael Nassif, as part of their compensation package, with the options vesting over three years and having a ten-year term.

The most recent analyst rating on (NEOG) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.

Neogen Appoints Avi Pelossof to Board of Directors

Neogen Corporation announced the retirement of William T. Boehm from its Board of Directors, effective October 23, 2025, after serving since 2011. Boehm’s contributions have been pivotal in shaping the company’s strategic direction and growth. Concurrently, Avi Pelossof has been appointed to the Board, effective October 24, 2025. Pelossof brings over 25 years of experience in the diagnostics market, having previously led Immucor Inc. through a successful turnaround and acquisition. His expertise is expected to provide valuable insights and drive innovation and growth for Neogen.

The most recent analyst rating on (NEOG) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.

Neogen Corporation Reports Q4 2025 Financial Results

Neogen Corporation is a global leader in food safety, livestock, and pet health and wellness, providing comprehensive solutions through science and technology to ensure global food security. The company recently reported its fourth-quarter 2025 earnings, highlighting a revenue of $225.5 million and a significant net loss of $612.2 million, primarily due to a non-cash goodwill impairment related to a past acquisition. Despite the challenges, Neogen’s core mission remains focused on enhancing food safety and security worldwide.

Neogen’s Earnings Call: Challenges and Strategic Moves

Neogen’s recent earnings call painted a mixed picture, with strategic initiatives and product launches being overshadowed by financial challenges. While the company made strides in pathogen detection and regulatory developments, revenue declines, production inefficiencies, and a significant goodwill impairment charge weighed heavily on the overall sentiment.

Neogen Appoints New CEO Mikhael Nassif

On July 24, 2025, Neogen Corporation announced the appointment of Mikhael Nassif as President and Chief Executive Officer, effective August 11, 2025. Mr. Nassif brings extensive leadership experience from his previous roles at Siemens Healthineers, Baxter International Inc., Anheuser-Busch InBev, and Johnson & Johnson. His compensation package includes an annual base salary of $800,000, participation in the Incentive Compensation Plan, and a long-term incentive plan, among other benefits. This strategic leadership change is expected to influence Neogen’s operational direction and potentially impact its market positioning.

The most recent analyst rating on (NEOG) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.