📊 NEOG Key Takeaways
Is Neogen Corp. (NEOG) a Good Investment?
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.
Fundamentals show flat revenue, negative operating income, and minimal net profitability, indicating weak earnings power despite a solid gross margin. Liquidity is strong and leverage appears manageable, but negative interest coverage and thin free cash flow highlight execution and profitability risks. Until operating margins and cash conversion improve, the risk/reward on fundamentals is unfavorable.
Neogen Corp. Key Strengths (NEOG)
- 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
- Strong liquidity with high current and quick ratios
- Healthy gross margin (~47%) signaling product economics
- Moderate leverage (Debt/Equity ~0.38) with substantial equity base
NEOG Stock Risks: Neogen Corp. Investment Risks
- 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
- Persistent operating losses and negative operating margin
- Negative interest coverage, elevating financing risk
- Flat top-line growth and weak free cash flow generation
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
- Operating margin
- Interest coverage
Neogen Corp. (NEOG) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
NEOG vs Healthcare Sector: How Neogen Corp. Compares
How Neogen Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Neogen Corp. Stock Overvalued? NEOG Valuation Analysis 2026
Based on fundamental analysis, Neogen Corp. has mixed fundamental signals relative to the Healthcare 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.
Neogen Corp. Balance Sheet: NEOG Debt, Cash & Liquidity
NEOG Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
NEOG Quarterly Earnings & 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.
Neogen Corp. Dividends, Buybacks & Capital Allocation
NEOG SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined 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. ChatGPT: Strong liquidity with high current and quick ratios. Healthy gross margin (~47%) signaling product economics.
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). ChatGPT: Persistent operating losses and negative operating margin. Negative interest coverage, elevating financing risk.
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 grade reflects both perspectives for balanced insights.
What is NEOG's fundamental grade?
Based on our AI fundamental analysis in May 2026, Neogen Corp. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. 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.
What is NEOG's AI grade for 2026?
Our dual AI analysis gives Neogen Corp. a combined C grade 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 Healthcare stocks?
Vs Healthcare sector averages: Net margin 0.5% (avg: 12%), ROE 0.2% (avg: 15%), current ratio 3.92 (avg: 2).