Neogen (NEOG) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 5.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -3.20%
• EPS Growth: -11471.95%
• Country: US
• Employees: 2,917
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -2.82
• Shares Outstanding: 217,205,180
• 10 Day Avg. Volume: 7,984,497
• 30 Day Avg. Volume: 5,993,806
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 21.82
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 4.88
• Enterprise Value/Ebitda: -2.13
• 1Y Price Target: $6.83
• Price Target Upside: 18.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: $5.50 ▼(-4.18% Downside)

Neogen's overall stock score reflects significant financial and valuation challenges, with declining revenue and profitability being major concerns. Technical indicators provide some positive momentum, but the negative P/E ratio and lack of dividend yield weigh heavily. The earnings call highlights both potential growth opportunities and ongoing operational challenges.

Positive Factors

Regulatory Tailwinds

Favorable regulatory changes in food safety can drive increased demand for Neogen's testing products, supporting long-term growth in the Food Safety segment.

Product Innovation

Innovative products like Listeria Right Now enhance Neogen's competitive edge by addressing critical market needs, potentially boosting market share and revenue.

Debt Reduction

Reducing debt with proceeds from divestitures improves Neogen's balance sheet health, enhancing financial flexibility for future strategic investments.

Negative Factors

Revenue Decline

Declining revenues in key segments like Food Safety indicate potential challenges in maintaining market position and could pressure future profitability.

Leadership Transition

The departure of key leadership like the CFO can create uncertainty and disrupt strategic initiatives, potentially impacting operational stability.

Goodwill Impairment

Significant goodwill impairment reflects overvaluation of past acquisitions, potentially indicating challenges in realizing expected synergies and returns.

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 diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed producers and processors; grain producers and processors; producers of cookies, crackers, candy, ice cream, and other processed foods; meat and poultry processors, seafood processors, fruit and vegetable producers, and dairies; laboratories; and producers of pharmaceuticals, cosmetics, and veterinary vaccines. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodenticides, cleaners, disinfectants, insecticides, and genomics testing services for the animal safety market. This segment offers various products for researchers to detect biologically active substances. Its drug detection immunoassay test kits are used for the detection of abused and therapeutic drugs in farm and racing animals; detection of drug residues in meat and meat products; and human forensic toxicology drug screening applications. In addition, this segment's products are used to maintain sanitary conditions and limit the potential hazards of bacteria, fungi, and viruses. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.

How the Company Makes Money

Neogen generates revenue through multiple key streams within its Food Safety and Animal Safety segments. The Food Safety division primarily earns money by selling diagnostic tests, food safety products, and equipment used to detect contaminants and pathogens in food products. This includes tests for pathogens like Salmonella and E. coli, as well as allergen testing kits. The Animal Safety segment generates revenue through the sale of veterinary pharmaceuticals, supplements, and diagnostic tests for livestock and pets. Additionally, Neogen benefits from recurring revenue through the sale of consumables used in its testing products and services. Significant partnerships with food manufacturers, agricultural producers, and veterinary practices bolster its revenue, as these collaborations often lead to long-term contracts and increased product adoption. Furthermore, the company's investments in research and development facilitate the introduction of new products, enhancing its market presence and driving further sales.

Neogen Financial Statement Overview

Summary

Neogen faces financial challenges with significant net losses and declining revenues. Despite maintaining a solid equity base and positive operating cash flow, the negative profitability metrics and decreasing free cash flow are concerning.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	894.66M	894.66M	924.22M	822.45M	527.16M	468.46M
Gross Profit	421.38M	421.38M	463.90M	405.95M	243.01M	215.06M
EBITDA	-964.92M	-935.82M	182.60M	122.30M	107.89M	98.30M
Net Income	-1.09B	-1.09B	-9.42M	-22.87M	48.31M	60.88M
Balance Sheet
Total Assets	3.44B	3.44B	4.55B	4.55B	992.93M	920.19M
Cash, Cash Equivalents and Short-Term Investments	129.00M	129.00M	170.94M	245.57M	381.05M	381.09M
Total Debt	19.30M	894.11M	906.24M	900.00M	986.69M	1.29M
Total Liabilities	1.37B	1.37B	1.40B	1.42B	105.56M	79.81M
Stockholders Equity	2.07B	2.07B	3.14B	3.13B	887.37M	840.38M
Cash Flow
Free Cash Flow	9.24M	58.24M	-76.16M	-24.73M	43.61M	54.38M
Operating Cash Flow	58.24M	58.24M	35.26M	41.03M	68.04M	81.09M
Investing Cash Flow	-99.19M	-99.19M	-29.31M	201.04M	-97.23M	-105.56M
Financing Cash Flow	-1.60M	-1.60M	1.92M	-118.08M	6.81M	33.54M

Neogen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 5.74 is above the 20-day moving average (MA) of 5.64, above the 50-day MA of 5.32, and below the 200-day MA of 7.71, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 82.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEOG.

Neogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLGT	63 Neutral	681.36M	-13.34	-4.57%	―	4.31%	69.57%
GRAL	59 Neutral	1.60B	-3.44	-80.97%	―	22.37%	86.08%
MYGN	52 Neutral	729.47M	-1.83	-101.83%	―	3.83%	-137.31%
OPK	52 Neutral	1.14B	-5.77	-13.66%	―	-7.31%	29.84%
NEOG	51 Neutral	$1.25B	―	-41.88%	―	-3.20%	-11471.95%
NEO	48 Neutral	1.09B	-10.30	-12.18%	―	9.70%	-30.94%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Neogen Corporate Events

Neogen Updates Executive Compensation Plan with PSUs

On August 15, 2025, Neogen Corporation announced changes to its fiscal 2026 long-term incentive compensation plan for its executive management team, introducing performance share units (PSUs) alongside stock options. This strategic move aims to align executive compensation with the company’s transformational and strategic goals, as well as market performance. The PSUs are based on performance metrics such as revenue growth, adjusted EBITDA margin expansion, and cash flow conversion over a three-year period. Additionally, stock options were granted to executives, including CEO Mikhael Nassif, as part of their compensation package, with the options vesting over three years and having a ten-year term.

The most recent analyst rating on (NEOG) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Neogen stock, see the NEOG Stock Forecast page.

Neogen Appoints Avi Pelossof to Board of Directors

Neogen Corporation announced the retirement of William T. Boehm from its Board of Directors, effective October 23, 2025, after serving since 2011. Boehm’s contributions have been pivotal in shaping the company’s strategic direction and growth. Concurrently, Avi Pelossof has been appointed to the Board, effective October 24, 2025. Pelossof brings over 25 years of experience in the diagnostics market, having previously led Immucor Inc. through a successful turnaround and acquisition. His expertise is expected to provide valuable insights and drive innovation and growth for Neogen.

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.