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Neogen
(NASDAQ:NEOG)
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Rating:55Neutral
Price Target:
$9.00
▼(-5.36% Downside)
Action:Reiterated
Date:04/20/26
NEOG scores as neutral overall, primarily constrained by weak current profitability and a negative P/E. The score is supported by a reasonably capitalized balance sheet, improving adjusted operating metrics and positive free cash flow discussed on the earnings call, but mixed technical signals and near-term operational headwinds (notably Animal Safety supply disruption, freight and FX) limit the upside until execution improves.
Positive Factors
Recurring consumables-driven revenue
Neogen’s core business sells consumable test kits and reagents used in routine safety workflows, creating repeatable demand tied to production volume and regulation. This recurring consumables model supports steady unit demand, predictable refill revenue and durable cash generation versus one-time sales.
Negative Factors
Severely deteriorated profitability
Trailing profitability has collapsed to deeply negative net margins, eroding retained earnings and ROE. Sustained losses impair the company’s ability to self-fund restructuring and R&D, increase reliance on debt or asset sales, and raise execution risk for multi-year transformation plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables-driven revenue
Neogen’s core business sells consumable test kits and reagents used in routine safety workflows, creating repeatable demand tied to production volume and regulation. This recurring consumables model supports steady unit demand, predictable refill revenue and durable cash generation versus one-time sales.
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.
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The Fly
The FlyNeogen (NEOG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend YieldN/A
Average Volume (3M)2.53M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-3.91%
EPS Growth-25.31%
CountryUS
Employees2,917
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-2.80
Shares Outstanding217,673,030
10 Day Avg. Volume2,139,931
30 Day Avg. Volume2,527,052
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 Cap1.27
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit6.96
Enterprise Value/Ebitda-5.75
Forecast
1Y Price Target
$12.00Price Target Upside26.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.3
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 makes money primarily by selling testing products, diagnostic kits, and associated consumables used in routine, repeatable safety and quality workflows. A significant portion of revenue is generated from food safety testing solutions, where...
Neogen Earnings Call Summary
Earnings Call Date:Apr 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: solid execution and margin improvement in Food Safety, positive free cash flow, progress on the Petrifilm manufacturing transition, and a clear multi-pronged transformation plan. However, notable near-term challenges remain—most prominently supplier-related disruptions in Animal Safety, logistics/freight inflation, FX headwinds, inventory legacy risks and a still-elevated debt position. Management is taking concrete actions (supplier qualification, operational centralization, targeted CapEx and a planned divestiture) that support medium-term improvement, but near-term headwinds temper upside.Positive Updates
Third Quarter Revenue and Core Growth
Q3 revenue of $211.2 million with core revenue growth of +0.1% year-over-year; demonstrates stability in a mixed market environment.
Negative Updates
Animal Safety Segment Disruption
Animal Safety revenue of $54.5 million with core revenue decline of -8.7% year-over-year, materially impacted by third-party supplier disruptions (documentation, raw material shortages, supplier site transitions, tariff-driven shifts).
Read all updates
Q3-2026 Updates
Positive
Negative
Third Quarter Revenue and Core Growth
Q3 revenue of $211.2 million with core revenue growth of +0.1% year-over-year; demonstrates stability in a mixed market environment.
Read all positive updates
Company Guidance
Management raised fiscal 2026 revenue guidance to $857–$860 million while maintaining adjusted EBITDA guidance of $175 million; Q3 revenue was $211.2 million (core +0.1%), with Food Safety $156.7M (core +4%) and Animal Safety $54.5M (core −8.7%). Key margin and profitability metrics: reported gross margin 46.9%, adjusted gross margin 51.7%, adjusted EBITDA $48.2M (22.8% margin, ~110 bps sequential improvement), adjusted net income $19.4M and adjusted EPS $0.09; free cash flow was $11.1M in Q3 and is positive year-to-date. Balance sheet and portfolio items include $800M gross debt (68% fixed), $159.9M cash, and an announced genomics divestiture for $160M (expected net proceeds ≈$140M, closing expected Q2 FY27) intended to lower net debt/adjusted EBITDA to below 3x by end of calendar 2026. Management warned of diminishing FX tailwinds (≈40% of revenue non‑USD), ongoing Animal Safety supplier headwinds into Q4, incremental freight/transport costs of about $1.5M per quarter (high single- to low double‑digit % increases), $40M annual plastics OEM spend with 6–9 months inventory, Petrifilm manufacturing transition on track for November 2026 (3M agreement through August 2027), and noted that transformation‑related spend (including a new Petrifilm R&D line) will be treated as temporary and excluded from adjusted results.Neogen Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 870.54M | 894.66M | 924.22M | 822.45M | 527.16M | 468.46M |
| Gross Profit | 370.51M | 421.38M | 462.63M | 405.95M | 243.01M | 215.06M |
| EBITDA | -448.60M | -937.75M | 182.60M | 122.30M | 83.90M | 96.31M |
| Net Income | -608.78M | -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 | 159.90M | 129.00M | 170.94M | 245.57M | 381.05M | 381.09M |
| Total Debt | 793.30M | 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 | 41.78M | -46.35M | -76.16M | -24.73M | 43.61M | 54.38M |
| Operating Cash Flow | 69.54M | 58.24M | 35.26M | 41.03M | 68.04M | 81.09M |
| Investing Cash Flow | 58.57M | -99.19M | -29.31M | 201.04M | -97.23M | -105.56M |
| Financing Cash Flow | -101.21M | -1.60M | 1.92M | -118.08M | 6.81M | 33.54M |
Neogen Technical Analysis
Positive
9.51
Price Trends
9.07
Positive
9.51
Negative
8.26
Positive
Market Momentum
0.06
Negative
53.44
Neutral
53.37
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 9.51 is above the 20-day moving average (MA) of 9.18, above the 50-day MA of 9.07, and above the 200-day MA of 8.26, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 53.37 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 |
|---|---|---|---|---|---|---|---|
59 Neutral | $1.97B | -3.95 | -11.82% | ― | 10.95% | -26.52% | |
55 Neutral | $2.03B | -3.33 | -29.00% | ― | -3.91% | -25.31% | |
54 Neutral | $592.15M | -8.76 | -6.70% | ― | 9.54% | -79.16% | |
52 Neutral | $428.79M | ― | -109.09% | ― | -0.28% | -286.80% | |
52 Neutral | $1.15B | -5.52 | -16.78% | ― | -15.70% | -364.69% | |
52 Neutral | $2.97B | -6.66 | -16.42% | ― | 19.44% | 82.94% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
NEOG
Neogen
9.34
4.36
87.55%
MYGN
Myriad Genetics
5.99
0.70
13.23%
OPK
Opko Health
1.52
0.18
13.43%
NEO
NeoGenomics
15.16
7.85
107.39%
FLGT
Fulgent Genetics
20.85
1.56
8.09%
GRAL
GRAIL Inc
69.11
24.26
54.09%
Neogen Corporate Events
Business Operations and StrategyProduct-Related Announcements
Neogen Hosts Investor Tours Highlighting Petrifilm Facility Progress
Positive
Apr 20, 2026
Neogen plans to host two investor tours of its Petrifilm manufacturing facility in Lansing, Michigan, on April 20, 2026, and April 21, 2026, to showcase progress in its production and validation processes. The company has completed multiple operat...
Business Operations and StrategyExecutive/Board Changes
Neogen Announces Departure of Chief Legal Officer Rocklin
Negative
Mar 30, 2026
On March 30, 2026, Neogen Corporation announced that its Chief Legal and Administrative Officer, Amy Rocklin, will leave the company effective March 31, 2026. The leadership change in a key legal and administrative role may signal an upcoming tran...
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.