📊 NEOG Key Takeaways
Is NEOG a Good Investment? Thesis Analysis
Neogen faces fundamental operational challenges with zero revenue growth, negative operating income of -$24.7M, and the inability to cover interest expense from operations (interest coverage of -0.6x). Despite adequate liquidity and a strong gross margin, the company's razor-thin net margin (0.5%), minimal free cash flow ($5.7M), and massive EPS decline (-12,475% YoY) indicate deteriorating financial health with an unsustainable debt burden.
Why Buy NEOG? Key Strengths
- Strong gross margin of 46.6% indicates viable core product economics
- Excellent liquidity position with 3.92x current ratio and $159.9M cash
- Positive operating cash flow of $53.0M despite operating losses
NEOG Investment Risks to Consider
- Negative operating income and inability to cover interest expense (interest coverage -0.6x) indicates unsustainable debt service
- Zero revenue growth with stagnant business and minimal profitability ($3.4M net income on $645M revenue)
- Extremely thin free cash flow margin (0.9%) leaves minimal financial flexibility for investments or economic downturns
- Massive EPS decline of -12,475% YoY signals severe operational deterioration
Key Metrics to Watch
- Operating income trajectory and return to profitability
- Revenue growth acceleration and gross margin sustainability
- Interest coverage ratio stabilization and debt reduction progress
- Free cash flow generation and working capital efficiency
NEOG Financial Metrics
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.92x current ratio provides a solid financial cushion.
NEOG Profitability Ratios
NEOG vs Default Sector
How NEOGEN CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NEOG Overvalued or Undervalued?
Based on fundamental analysis, NEOGEN CORP has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NEOG Balance Sheet & Liquidity
NEOG 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NEOGEN CORP's revenue has grown significantly by 97% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.12 indicates the company is currently unprofitable.
NEOG Growth Metrics (YoY)
NEOG Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $211.2M | $3.4M | $0.02 |
| Q2 2026 | $224.7M | -$15.9M | $-0.07 |
| Q1 2026 | $209.2M | -$12.6M | $-0.06 |
| Q3 2025 | $221.0M | -$2.0M | $-0.01 |
| Q2 2025 | $229.6M | -$2.0M | $-0.01 |
| Q3 2024 | $218.3M | -$2.0M | $-0.01 |
| Q2 2024 | $229.6M | -$2.0M | $-0.01 |
| Q1 2024 | $132.3M | $1.5M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NEOG Capital Allocation
NEOG SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NEOGEN CORP (CIK: 0000711377)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NEOG
What is the AI rating for NEOG?
NEOGEN CORP (NEOG) has an AI rating of SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NEOG's key strengths?
Claude: Strong gross margin of 46.6% indicates viable core product economics. Excellent liquidity position with 3.92x current ratio and $159.9M cash.
What are the risks of investing in NEOG?
Claude: Negative operating income and inability to cover interest expense (interest coverage -0.6x) indicates unsustainable debt service. Zero revenue growth with stagnant business and minimal profitability ($3.4M net income on $645M revenue).
What is NEOG's revenue and growth?
NEOGEN CORP reported revenue of $645.1M.
Does NEOG pay dividends?
NEOGEN CORP does not currently pay dividends.
Where can I find NEOG SEC filings?
Official SEC filings for NEOGEN CORP (CIK: 0000711377) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NEOG's EPS?
NEOGEN CORP has a diluted EPS of $0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NEOG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NEOGEN CORP has a SELL rating with 87% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NEOG stock overvalued or undervalued?
Valuation metrics for NEOG: ROE of 0.2% (sector avg: 15%), net margin of 0.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NEOG stock in 2026?
Our dual AI analysis gives NEOGEN CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NEOG's free cash flow?
NEOGEN CORP's operating cash flow is $53.0M, with capital expenditures of $47.3M. FCF margin is 0.9%.
How does NEOG compare to other Default stocks?
Vs Default sector averages: Net margin 0.5% (avg: 12%), ROE 0.2% (avg: 15%), current ratio 3.92 (avg: 1.8).