Neogen Corp (NEOG)
NASDAQ:NEOG
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Neogen
(NASDAQ:NEOG)
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Rating:56Neutral
Price Target:
$8.50
▼(-7.21% Downside)
Action:ReiteratedDate:01/09/26
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 Consumables Revenue
Neogen’s core business is built on repeat consumable sales (test kits, media, reagents, sampling devices) tied to routine regulatory and QA testing. That recurring revenue base supports predictable demand, higher lifetime customer value, and resilience to short-term volume swings, underpinning durable cash generation.
Negative Factors
Elevated Leverage
With gross debt around $800M and proceeds/timing of the planned genomics divestiture uncertain, leverage constrains strategic optionality. High debt increases interest and refinancing risk, limits margin of safety for operational setbacks, and makes deleveraging dependent on execution or asset-sale timing rather than organic improvement alone.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables Revenue
Neogen’s core business is built on repeat consumable sales (test kits, media, reagents, sampling devices) tied to routine regulatory and QA testing. That recurring revenue base supports predictable demand, higher lifetime customer value, and resilience to short-term volume swings, underpinning durable cash generation.
Read all positive factors
Neogen (NEOG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.99B
Dividend YieldN/A
Average Volume (3M)2.78M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-2.77%
EPS Growth-4327.53%
CountryUS
Employees2,917
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)0.10
Shares Outstanding217,525,990
10 Day Avg. Volume2,491,193
30 Day Avg. Volume2,779,218
Financial Highlights & Ratios
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 Cap1.33
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit7.88
Enterprise Value/Ebitda-6.08
Forecast
1Y Price Target
$11.00Price Target Upside20.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.34
Revenue Forecast (FY)$850.58M
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 diagnost...
How the Company Makes Money
Neogen makes money primarily by selling products and services used in food and animal safety testing and monitoring. A major portion of revenue is generated from food safety diagnostics, including recurring consumable sales (e.g., pathogen, allerg...
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 Earnings Call Summary
Earnings Call Date:Jan 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The call presented several encouraging operational and financial signs: return to positive core revenue growth, meaningful sequential margin expansion (adjusted EBITDA margin +~470 bps), raised full-year guidance, demonstrated progress on Petrifilm integration, and enacted ~$20M of annualized cost savings. These positives were balanced against persistent macro headwinds (weaker food production and animal herd trends), elevated inventory write-offs, historical sample collection drag (improving), and substantial remaining leverage ($800M gross debt). Management emphasized conservative guidance and disciplined execution. On balance, the call conveyed material early progress and constructive momentum while acknowledging important execution and market risks that are being actively managed.Positive Updates
Return to Positive Core Revenue Growth
Total Q2 revenue of $224.7M with core revenue growth of 2.9% (foreign currency +0.9%; divestitures/discontinued products headwind -6.6%).
Negative Updates
Macroeconomic and Industry Headwinds
Management cited ongoing macro challenges: food production volumes generally down year-over-year, several plant closures and producer bankruptcies, and multi-year declines in production animal herds (animal safety weakness). Guidance remains conservative due to these conditions.
Read all updates
Q2-2026 Updates
Positive
Negative
Return to Positive Core Revenue Growth
Total Q2 revenue of $224.7M with core revenue growth of 2.9% (foreign currency +0.9%; divestitures/discontinued products headwind -6.6%).
Read all positive updates
Company Guidance
Management raised fiscal 2026 guidance to revenue of $845–$855 million and adjusted EBITDA of about $175 million (roughly a 20.6% margin at the midpoint), while reiterating full‑year CapEx of ~$50 million and positive free cash flow; they expect routine CapEx to normalize to 3–4% of revenue late in FY26. The upgrade was driven by Q2 results of $224.7 million revenue (core +2.9%), adjusted EBITDA $48.7 million (21.7% margin, +470 bps sequential), adjusted net income $22.6 million and adjusted EPS $0.10, gross margin 47.5% (50.3% excluding integration/restructuring), and Q2 free cash flow of $7.8 million. Management said cost actions implemented in Q2 should deliver about $20 million of annualized savings, noted gross debt of $800 million with $145.3 million of cash (68% of debt fixed rate), expects Q4 revenue modestly above Q3 (with Q3 stepping down from Q2) and margins to follow a similar pattern, and flagged the genomics divestiture process (announcement anticipated in Q4) and Petrifilm integration on track for 2027.Neogen Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
56
Neutral
Cash Flow
48
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 880.32M | 894.66M | 924.22M | 822.45M | 527.16M | 468.46M |
| Gross Profit | 334.96M | 421.38M | 462.63M | 405.95M | 243.01M | 215.06M |
| EBITDA | -433.71M | -937.75M | 182.60M | 122.30M | 83.90M | 96.31M |
| Net Income | -602.74M | -1.09B | -9.42M | -22.87M | 48.31M | 60.88M |
Balance Sheet | ||||||
| Total Assets | 3.36B | 3.44B | 4.55B | 4.55B | 992.93M | 920.19M |
| Cash, Cash Equivalents and Short-Term Investments | 145.34M | 129.00M | 170.94M | 245.57M | 381.05M | 381.09M |
| Total Debt | 792.93M | 912.61M | 906.24M | 897.53M | 0.00 | 1.29M |
| Total Liabilities | 1.26B | 1.37B | 1.40B | 1.42B | 105.56M | 79.81M |
| Stockholders Equity | 2.10B | 2.07B | 3.14B | 3.13B | 887.37M | 840.38M |
Cash Flow | ||||||
| Free Cash Flow | 17.20M | -46.35M | -76.16M | -24.73M | 43.61M | 54.38M |
| Operating Cash Flow | 66.20M | 58.24M | 35.26M | 41.03M | 68.04M | 81.09M |
| Investing Cash Flow | 37.68M | -99.19M | -29.31M | 201.04M | -97.23M | -105.56M |
| Financing Cash Flow | -101.01M | -1.60M | 1.92M | -118.08M | 6.81M | 33.54M |
Neogen Technical Analysis
Positive
9.16
Price Trends
10.13
Negative
8.41
Positive
6.93
Positive
Market Momentum
-0.41
Positive
41.73
Neutral
54.08
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 9.16 is below the 20-day moving average (MA) of 9.74, below the 50-day MA of 10.13, and above the 200-day MA of 6.93, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 41.73 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 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 |
|---|---|---|---|---|---|---|---|
56 Neutral | $1.99B | -20.21 | -26.92% | ― | -2.77% | -4327.53% | |
54 Neutral | $2.14B | -8.79 | -17.11% | ― | 20.53% | 82.91% | |
52 Neutral | $1.01B | -2.79 | -12.64% | ― | 10.10% | -44.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $511.25M | -13.36 | -5.40% | ― | 13.60% | 74.64% | |
48 Neutral | $432.01M | -1.57 | -79.81% | ― | 0.21% | -233.51% | |
48 Neutral | $888.11M | -4.27 | -17.42% | ― | -9.75% | -31.28% |
* Healthcare Sector Average
NEOG
Neogen
9.15
0.19
2.12%
MYGN
Myriad Genetics
4.62
-4.60
-49.89%
OPK
Opko Health
1.17
-0.57
-32.76%
NEO
NeoGenomics
7.76
-1.72
-18.14%
FLGT
Fulgent Genetics
16.37
-0.48
-2.85%
GRAL
GRAIL Inc
52.16
23.58
82.51%
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.