Neogen (NEOG) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 6.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -2.50%
• EPS Growth: -30760.27%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.05
• Shares Outstanding: 217,038,270
• 10 Day Avg. Volume: 8,537,800
• 30 Day Avg. Volume: 6,069,712
• PEG Ratio: 1.14
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -133.59
• Enterprise Value/Market Cap: 3.49
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 9.14
• Enterprise Value/Ebitda: -11.84
• 1Y Price Target: $7.50
• Price Target Upside: 40.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: $5.00 ▼(-6.19%Downside)

Neogen's overall score reflects substantial financial challenges, with significant net losses and declining revenues as key factors. The company's bearish technical indicators and negative valuation metrics further weigh on the score. However, strategic corporate actions and a cautious yet constructive earnings call provide some positive outlook amidst macroeconomic uncertainties.

Positive Factors

Financial Strategy

The planned use of $100 million from the proceeds to pay down the outstanding revolver is expected to lower Neogen's leverage ratio, alleviating concerns about the company’s debt covenants.

Integration and Execution

The integration of 3M Food Safety is nearly complete, which is seen as a positive development for the company.

Strategic Divestitures

The sale of Neogen's global cleaners and disinfectants business helps streamline its P&L in the more attractive food safety segment by divesting a lower-margin animal safety business.

Negative Factors

Debt Concerns

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

Financial Uncertainties

Divestitures of two animal safety segments are creating uncertainties in the financial model.

Tariff Impact

Tariff headwinds are expected to impact the company's financial performance.

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 makes money through the sale of a wide range of products and services across its two main segments. In the Food Safety segment, revenue is generated from the sale of diagnostic test kits that detect harmful substances in food, such as allergens, pathogens, and toxins. The Animal Safety segment contributes to revenue through sales of veterinary instruments, pharmaceuticals, and genomic solutions that support animal health and productivity. Additionally, Neogen benefits from strategic partnerships and collaborations with industry leaders, which enhance its product offerings and market reach. The company also invests in research and development to continually innovate and expand its product lines, contributing to sustained revenue growth.

Neogen Financial Statement Overview

Summary

Neogen faces significant financial challenges, with substantial net losses and declining revenues. Despite a strong equity base and positive operating cash flow, negative profitability metrics and declining free cash flow present concerns. The balance sheet is 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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	906.00M	924.22M	822.45M	527.16M	468.46M	418.17M
Gross Profit	442.00M	463.90M	405.95M	243.01M	215.06M	196.28M
EBITDA	-345.62M	182.60M	122.30M	107.89M	98.30M	85.92M
Net Income	-485.26M	-9.42M	-22.87M	48.31M	60.88M	59.48M
Balance Sheet
Total Assets	4.04B	4.55B	4.55B	992.93M	920.19M	797.18M
Cash, Cash Equivalents and Short-Term Investments	127.70M	170.94M	245.57M	381.05M	381.09M	343.67M
Total Debt	893.11M	906.24M	900.00M	986.69M	1.29M	1.05M
Total Liabilities	1.38B	1.40B	1.42B	105.56M	79.81M	72.00M
Stockholders Equity	2.66B	3.14B	3.13B	887.37M	840.38M	725.18M
Cash Flow
Free Cash Flow	11.23M	-76.16M	-24.73M	43.61M	54.38M	61.83M
Operating Cash Flow	68.36M	35.26M	41.03M	68.04M	81.09M	85.88M
Investing Cash Flow	-100.79M	-29.31M	201.04M	-97.23M	-105.56M	-88.78M
Financing Cash Flow	528.00K	1.92M	-118.08M	6.81M	33.54M	29.41M

Neogen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.33
• 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 Neutral. The current price of 5.33 is above the 20-day moving average (MA) of 5.18, below the 50-day MA of 5.57, and below the 200-day MA of 10.41, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 80.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEOG.

Neogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSTL	73 Outperform	$586.11M	30.59	-1.20%	―	38.43%	86.19%
SHC	61 Neutral	$3.33B	135.62	5.88%	―	2.78%	-54.72%
NEO	53 Neutral	$971.64M	―	-8.57%	―	10.10%	8.79%
FLGT	52 Neutral	$610.70M	―	-3.61%	―	1.71%	76.00%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%
NEOG	45 Neutral	$1.16B	―	-16.71%	―	-2.50%	-30760.27%
MYGN	45 Neutral	$516.19M	―	-13.84%	―	7.38%	60.45%

Neogen Corporate Events

Neogen Highlights Food Safety Focus at Conference

On June 4, 2025, Neogen Corporation presented at the William Blair Growth Stock Conference, highlighting its strategic focus on food safety following the acquisition of 3M’s food safety division. The integration process, now three years in, has faced challenges but remains on track, with a reshaping of the portfolio to emphasize food safety. Neogen anticipates a material approximation of Q4 revenue guidance despite transitory headwinds affecting gross margins. The company is implementing targeted improvement plans to enhance performance, including divestitures and operational efficiencies, while navigating macroeconomic impacts on food demand and trade uncertainties.

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 Highlights Tariff Impact Reduction at Conference

On May 14, 2025, Neogen Corporation shared updates at the Bank of America Healthcare Conference, highlighting a reduction in the estimated annualized negative impact of tariffs from $29 million to $5 million due to mitigating actions. The company outlined a targeted improvement plan focusing on accelerating food safety growth, completing the integration of 3M’s food safety division, and enhancing governance and compliance to align with shareholder expectations.

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 Announces Board Member Retirement and Succession

On May 13, 2025, Neogen Corporation announced the retirement of James P. Tobin from its Board of Directors, effective May 31, 2025, after nine years of service. Tobin, who chaired the Governance and Sustainability Committee, will be succeeded by Andrea Wainer, effective June 1, 2025. Wainer, with over 25 years of experience in diagnostics and healthcare, is expected to bring valuable expertise to Neogen’s mission of leading in food safety solutions.

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 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.

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.

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.