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Neogen
(NASDAQ:NEOG)
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Rating:59Neutral
Price Target:
$12.00
▲(28.48% Upside)
Action:Reiterated
Date:08/06/26
NEOG scores in the upper-50s primarily due to weak profitability on the income statement (losses and negative operating results) partially offset by improving cash flow and a reasonably supported balance sheet. Technicals add support with a clear uptrend and positive momentum. The earnings call was moderately positive on execution and FY27 profitability/cash flow goals, but leverage and divestiture/transition execution risks cap the score. Valuation remains a drag given the negative P/E and lack of dividend yield data.
Positive Factors
Recurring consumables and cross-selling
Neogen's business is anchored in high-frequency consumables and test kits that customers repurchase as part of compliance and quality programs. That consumables pull-through plus instrument placements and cross-selling across product lines creates durable, repeatable revenue and margin stability over time.
Negative Factors
Recurring net losses and weak operating results
Persistent negative operating results and intermittent large GAAP losses erode retained earnings and limit the company's ability to self‑fund growth. Until operating profitability consistently returns, ROE and reinvestment capacity remain constrained, forcing reliance on cash or asset sales to meet strategic goals.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables and cross-selling
Neogen's business is anchored in high-frequency consumables and test kits that customers repurchase as part of compliance and quality programs. That consumables pull-through plus instrument placements and cross-selling across product lines creates durable, repeatable revenue and margin stability over time.
Read all positive factors
Neogen Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyNeogen (NEOG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.50B
Dividend YieldN/A
Average Volume (3M)2.53M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-2.71%
EPS Growth99.28%
CountryUS
Employees2,636
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.03
Shares Outstanding218,056,020
10 Day Avg. Volume2,139,931
30 Day Avg. Volume2,527,052
Financial Highlights & Ratios
PEG Ratio2.25
Price to Book (P/B)0.93
Price to Sales (P/S)2.23
P/FCF Ratio60.82
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.50Price Target Upside33.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.29
Revenue Forecast (FY)$849.08M
Neogen Business Overview & Revenue Model
Company Description
Neogen Corporation, including its affiliated companies, is a global leader in creating, manufacturing, and distributing a wide range of products crucial for maintaining food quality and animal health. The enterprise is structured into two primary ...
How the Company Makes Money
Neogen primarily makes money by selling products and services that support testing and monitoring in food safety and animal safety workflows. A major portion of revenue is generated from recurring consumables and test kits used in routine screenin...
Neogen Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 08, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive, execution-focused tone: management reported clear operational improvements (stronger Food Safety growth, Animal Safety recovery, inventory reduction, margin expansion and record quarterly cash flow) and important milestones on Petrifilm and R&D. At the same time, the company is deliberately accelerating investments (R&D, commercial transformation, technology) and carrying meaningful leverage with a pending genomics divestiture subject to regulatory review. Near-term margins and guidance reflect these investments and macro/currency headwinds, but the strategic actions and early results point to a credible path to stronger, more profitable growth over the medium term.Positive Updates
Quarterly Revenue Growth
Q4 FY26 revenue of $225.3M, representing 4.3% core growth — the highest core growth rate of the fiscal year.
Negative Updates
Near-Term Margin Pressure from Investments
Management plans significant FY27 investments (R&D +50%, $25M transformation initiatives) which compress near-term EBITDA expansion despite long-term benefit; Q1 EBITDA guidance (~$37M) is modest and was viewed as below some Street expectations.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q4 FY26 revenue of $225.3M, representing 4.3% core growth — the highest core growth rate of the fiscal year.
Read all positive updates
Company Guidance
Neogen guided fiscal 2027 revenue of $880–885 million and adjusted EBITDA of $180–182 million (about a 20.5% adjusted EBITDA margin at the midpoint), a guide that includes roughly $92 million of genomics revenue and ~$13 million of genomics adjusted EBITDA, implies ~3% core growth (with management noting ~50 bps of headwind from prior divestitures and ~100 bps FX headwind that reconcile to ~1.5% reported topline), assumes ~‑1% currency impact, and provides Q1 ’27 guidance of $207–209 million revenue and approximately $37 million adjusted EBITDA; the company plans to increase R&D ~50% (targeting ~5% of revenue long‑term), spend $25 million on transformation initiatives in FY27 (vs. ~$22 million in FY26; excluded from adjusted results), expects GAAP operating cash flow and free cash flow to increase meaningfully, intends to use ~$140 million net proceeds from the pending genomics divestiture to pay down debt (targeting <3x net leverage by year‑end and ~2.5x at FY‑end), and closed Q4 with ~$794 million gross debt and $185.5 million cash (having repaid $20 million of term loan in June).Neogen Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 870.40M | 894.66M | 924.22M | 822.45M | 527.16M |
| Gross Profit | 408.50M | 421.38M | 462.63M | 405.95M | 243.01M |
| EBITDA | 170.50M | -937.75M | 182.60M | 122.30M | 83.90M |
| Net Income | -7.90M | -1.09B | -9.42M | -22.87M | 48.31M |
Balance Sheet | |||||
| Total Assets | 3.35B | 3.44B | 4.55B | 4.55B | 992.93M |
| Cash, Cash Equivalents and Short-Term Investments | 185.50M | 129.00M | 170.94M | 245.57M | 381.05M |
| Total Debt | 0.00 | 912.61M | 906.24M | 897.53M | 0.00 |
| Total Liabilities | 1.25B | 1.37B | 1.40B | 1.42B | 105.56M |
| Stockholders Equity | 2.09B | 2.07B | 3.14B | 3.13B | 887.37M |
Cash Flow | |||||
| Free Cash Flow | 31.90M | -46.35M | -76.16M | -24.73M | 43.61M |
| Operating Cash Flow | 83.20M | 58.24M | 35.26M | 41.03M | 68.04M |
| Investing Cash Flow | 70.50M | -99.19M | -29.31M | 201.04M | -97.23M |
| Financing Cash Flow | -99.40M | -1.60M | 1.92M | -118.08M | 6.81M |
Neogen Technical Analysis
Positive
9.34
Price Trends
9.72
Positive
9.44
Positive
8.84
Positive
Market Momentum
0.56
Negative
63.63
Neutral
61.58
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 9.34 is below the 20-day moving average (MA) of 10.49, below the 50-day MA of 9.72, and above the 200-day MA of 8.84, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 61.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEOG.
Neogen Risk Analysis
Neogen disclosed 36 risk factors in its most recent earnings report. Neogen reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Neogen Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $2.13B | -8.38 | -6.31% | ― | 11.19% | 50.58% | |
59 Neutral | $2.50B | -343.37 | -0.37% | ― | -2.71% | 99.28% | |
53 Neutral | $3.10B | -7.68 | -15.88% | ― | 23.07% | 24.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.02B | -14.59 | -5.88% | ― | -11.46% | 58.54% | |
48 Neutral | $526.64M | -6.76 | -7.87% | ― | 6.83% | -69.59% | |
47 Neutral | $311.82M | -2.72 | -32.59% | ― | -3.16% | 72.02% |
* Healthcare Sector Average
NEOG
Neogen
11.40
6.29
123.09%
MYGN
Myriad Genetics
3.25
-2.94
-47.50%
OPK
Opko Health
1.39
0.09
6.92%
NEO
NeoGenomics
16.63
10.81
185.74%
FLGT
Fulgent Genetics
19.06
-1.55
-7.52%
GRAL
GRAIL Inc
74.84
42.15
128.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.