Neogen (NEOG) AI Stock Analysis

• Market Cap: $1.56B
• Dividend Yield: N/A
• Average Volume (3M): 3.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -2.77%
• EPS Growth: -4327.53%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.04
• Shares Outstanding: 217,298,630
• 10 Day Avg. Volume: 4,697,704
• 30 Day Avg. Volume: 3,767,738
• 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: 1.22
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: -2.15
• 1Y Price Target: $8.17
• Price Target Upside: 14.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.24
• Revenue Forecast (FY): $823.30M

• Rating: 50 Neutral
• Price Target: $6.00 ▼(-15.85% Downside)

Neogen's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. While strategic initiatives and leadership changes offer potential for improvement, current valuation concerns and mixed technical indicators weigh on the stock's attractiveness.

Positive Factors

New CFO Appointment

The appointment of Bryan Riggsbee as CFO brings over 25 years of financial leadership experience, potentially enhancing strategic financial management and supporting sustainable growth.

Animal Safety Segment Growth

The Animal Safety segment's growth indicates strong demand for biologics and wound care products, supporting long-term revenue stability and market position.

Free Cash Flow Improvement

Improved free cash flow reflects better operational efficiency and financial health, enhancing Neogen's ability to invest in growth and innovation.

Negative Factors

Declining Food Safety Revenue

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

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and profitability challenges, potentially limiting Neogen's ability to reinvest in business growth.

APAC Region Challenges

Challenges in the APAC region, driven by supply chain shifts and distributor changes, may hinder regional growth and require strategic adjustments.

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: 7.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 7.13 is above the 20-day moving average (MA) of 6.48, above the 50-day MA of 6.25, and above the 200-day MA of 6.01, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, 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	$3.55B	-8.13	-16.83%	―	20.53%	82.91%
FLGT	57 Neutral	$853.49M	-19.72	-3.80%	―	13.60%	74.64%
NEO	55 Neutral	$1.53B	―	-12.99%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOG	50 Neutral	$1.56B	―	-39.71%	―	-2.77%	-4327.53%
OPK	50 Neutral	$1.01B	-5.39	-13.32%	―	-9.75%	-31.28%
MYGN	41 Neutral	$610.55M	-1.56	-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.

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.

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.