Neogen (NEOG) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 6.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -2.50%
• EPS Growth: -30760.27%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.05
• Shares Outstanding: 217,038,270
• 10 Day Avg. Volume: 4,917,352
• 30 Day Avg. Volume: 6,611,000
• PEG Ratio: 1.41
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 111.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.00
• Price Target Upside: 48.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $6.50 ▲( 7.26% Upside)

Neogen's overall stock score reflects significant financial struggles, with major concerns around profitability and declining revenues. While technical indicators and valuation metrics are weak, recent corporate events and some positive earnings call highlights provide a moderate offset. The company’s low leverage and strategic actions offer some hope, but immediate financial challenges dominate.

Positive Factors

Debt Management

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.

Leadership and Execution

The new facility is on schedule, showcasing proper leadership for executing Petrifilm manufacturing.

Valuation

The stock is trading at its lowest valuation levels in company history, presenting potential upside.

Negative Factors

Genomics Business

The genomic services business is expected to decrease to a $50 million annual run-rate, down from roughly $90 million.

Investor Sentiment

Lowered guidance will likely worsen already poor investor sentiment.

Tariff Impact

There is a slight decrease in gross margin estimates due to an evolving tariff landscape, particularly with China.

Neogen Business Overview & Revenue Model

Company Description

Neogen Corporation (NEOG) is a diversified global company specializing in the development and marketing of products dedicated to food and animal safety. The company operates within two primary business segments: Food Safety and Animal Safety. Neogen's core products include diagnostic test kits, disinfectants, veterinary instruments, and genomic solutions aimed at enhancing food safety, quality, and animal health.

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 solid equity base and positive operating cash flow, negative profitability metrics and declining free cash flow are concerning. The balance sheet remains 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
	EBIT
-432.24M	58.66M	37.52M	34.92M	53.13M	49.13M
	EBITDA
-345.62M	182.60M	122.30M	107.89M	98.30M	85.92M
	Net Income Common Stockholders
-485.26M	-9.42M	-22.87M	48.31M	60.88M	59.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
327.92M	170.94M	245.57M	381.05M	381.09M	343.67M
	Total Assets
773.50M	4.55B	4.55B	992.93M	920.19M	797.18M
	Total Debt
1.47M	906.24M	900.00M	986.69M	1.29M	1.05M
	Net Debt
-326.46M	735.63M	736.76M	605.64M	-379.80M	-342.62M
	Total Liabilities
61.63M	1.40B	1.42B	105.56M	79.81M	72.00M
	Stockholders Equity
711.87M	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: Negative
• Last Price: 6.06
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 6.06 is above the 20-day moving average (MA) of 5.94, below the 50-day MA of 6.67, and below the 200-day MA of 11.89, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 31.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEOG.

Neogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHC	66 Neutral	$3.45B	140.42	5.88%	―	2.78%	-54.72%
CSTL	65 Neutral	$464.84M	30.59	-1.20%	―	38.43%	86.19%
FLGT	59 Neutral	$618.31M	―	-3.61%	―	1.71%	76.00%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
NEO	52 Neutral	$953.63M	―	-8.57%	―	10.10%	8.79%
MYGN	51 Neutral	$360.41M	―	-13.84%	―	12.15%	61.33%
NEOG	49 Neutral	$1.32B	―	-16.71%	―	-2.50%	-30760.27%

Neogen Corporate Events

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.