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Neogen
(NASDAQ:NEOG)
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Rating:60Neutral
Price Target:
$12.50
▲(6.47% Upside)
Action:Reiterated
Date:10/07/26
NEOG’s score is driven primarily by improving fundamentals signaled in the latest earnings call (raised FY27 guidance and expectations for meaningful cash flow improvement) and a relatively supportive financial base (stronger balance sheet and recent positive free cash flow). These positives are tempered by ongoing net losses and historical earnings volatility, while technical indicators and valuation (negative P/E and no dividend yield provided) remain moderate-to-weak.
Positive Factors
Recurring consumables model
Neogen benefits from repeat testing tied to regulatory standards and customer quality programs. Consumable replenishment can create recurring revenue, while instruments and workflow products support cross-selling and deepen customer relationships over time.
Negative Factors
Persistent unprofitability
Ongoing net losses and negative EBIT show that revenue has not yet translated into consistent GAAP profitability. This weakens earnings quality, limits internally generated capital, and leaves results more exposed to execution issues or cost increases over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables model
Neogen benefits from repeat testing tied to regulatory standards and customer quality programs. Consumable replenishment can create recurring revenue, while instruments and workflow products support cross-selling and deepen customer relationships over time.
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
$2.67B
Dividend YieldN/A
Average Volume (3M)4.63M
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-0.33%
EPS Growth94.64%
CountryUS
Employees2,636
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.25
Shares Outstanding218,306,030
10 Day Avg. Volume2,677,746
30 Day Avg. Volume4,632,044
Financial Highlights & Ratios
PEG Ratio2.25
Price to Book (P/B)0.93
Price to Sales (P/S)2.23
P/FCF Ratio60.82
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.53
Enterprise Value/Gross Profit7.45
Enterprise Value/Ebitda29.71
Forecast
1Y Price Target
$14.00Price Target Upside19.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.32
Revenue Forecast (FY)$886.61M
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 primarily makes money by selling products and services that support testing and monitoring in food safety and animal safety workflows. A major portion of revenue is generated from recurring consumables and test kits used in routine screenin...
Neogen Earnings Call Summary
Earnings Call Date:Oct 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 14, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Neogen reported broad-based revenue growth, improved adjusted EBITDA margins and free cash flow, raised fiscal 2027 guidance, advanced commercial and innovation initiatives, and reached an important Petrifilm validation milestone. Management also highlighted near-term growth timing effects, macroeconomic pressures, transition-related duplicative costs and a full-year EBITDA margin outlook roughly similar to fiscal 2026, but described these issues as understood and incorporated into its plans.Positive Updates
Revenue Growth and Encouraging Fiscal-Year Start
First-quarter revenue was $222.8 million, representing 8.1% core growth. Management described the quarter as an encouraging start to fiscal year 2027, with solid core revenue growth in both Food Safety and Animal Safety and an acceleration from the fourth quarter.
Negative Updates
First-Quarter Growth Benefited from Timing Items
The timing of certain customer orders benefited first-quarter core growth by approximately 300 basis points, with orders expected in the second quarter occurring in the first quarter instead. In addition, the prior-year first quarter was negatively affected by inventory adjustments at two large distributors.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth and Encouraging Fiscal-Year Start
First-quarter revenue was $222.8 million, representing 8.1% core growth. Management described the quarter as an encouraging start to fiscal year 2027, with solid core revenue growth in both Food Safety and Animal Safety and an acceleration from the fourth quarter.
Read all positive updates
Company Guidance
For fiscal year 2027, Neogen raised revenue guidance to $885 million to $890 million and adjusted EBITDA guidance to $181 million to $183 million, with the genomics business continuing to be included; the second quarter is expected to see the lowest level of core growth, first-half core growth is expected to be “in the range of approximately 3.5%,” and first-half adjusted EBITDA margin is expected to be “in line with the first quarter,” while full-year EBITDA margins are expected to be “roughly similar” to fiscal year '26. The company expects to expand adjusted EBITDA margins through progress in key operational efficiency programs, and maintains its view that both GAAP cash flow from operations and free cash flow will “increase meaningfully on a year-over-year basis”; the genomics divestiture is expected to receive a final decision by the end of December, with expected net proceeds of approximately $140 million, which would put net leverage below 3x at closing and closer to 2.5x by the end of the fiscal year. The Petrifilm manufacturing transfer is expected to begin the planned multi-quarter transfer next month, and after transitioning over through fiscal year '28, Neogen expects margin improvement of 200 to 300 basis points in FY '29, with improvements beginning in the first fiscal year and fully implemented in the second year.Neogen Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 883.99M | 870.40M | 894.66M | 924.22M | 822.45M | 527.16M |
| Gross Profit | 418.98M | 408.50M | 421.38M | 462.63M | 405.95M | 243.01M |
| EBITDA | 105.13M | 164.90M | -937.75M | 182.60M | 124.39M | 84.34M |
| Net Income | -56.12M | -7.90M | -1.09B | -9.42M | -22.87M | 48.31M |
Balance Sheet | ||||||
| Total Assets | 3.30B | 3.35B | 3.44B | 4.55B | 4.55B | 992.93M |
| Cash, Cash Equivalents and Short-Term Investments | 172.00M | 185.50M | 129.00M | 170.94M | 245.57M | 381.05M |
| Total Debt | 774.20M | 793.70M | 912.61M | 906.24M | 897.53M | 0.00 |
| Total Liabilities | 1.22B | 1.25B | 1.37B | 1.40B | 1.42B | 105.56M |
| Stockholders Equity | 2.09B | 2.09B | 2.07B | 3.14B | 3.13B | 887.37M |
Cash Flow | ||||||
| Free Cash Flow | 49.75M | 31.90M | -46.35M | -76.16M | -24.73M | 43.61M |
| Operating Cash Flow | 85.25M | 83.20M | 58.24M | 35.26M | 41.03M | 68.04M |
| Investing Cash Flow | -35.42M | 70.50M | -99.19M | -29.31M | 201.04M | -97.23M |
| Financing Cash Flow | -19.01M | -99.40M | -1.60M | 1.92M | -118.08M | 6.81M |
Neogen Technical Analysis
Positive
11.74
Price Trends
12.20
Positive
11.07
Positive
10.36
Positive
Market Momentum
-0.09
Positive
51.24
Neutral
65.96
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 11.74 is below the 20-day moving average (MA) of 12.08, below the 50-day MA of 12.20, and above the 200-day MA of 10.36, indicating a bullish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 65.96 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 42 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $9.99B | 44.71 | 3.15% | ― | 1.37% | -29.25% | |
60 Neutral | $2.67B | -48.22 | -2.68% | ― | -0.33% | 94.64% | |
59 Neutral | $8.87B | -83.30 | -2.92% | 0.34% | 1.65% | -233.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $699.37M | -5.23 | -4961.74% | ― | 2.02% | 75.85% | |
48 Neutral | $133.84M | -1.08 | -43.59% | ― | 21.96% | -44.65% | |
43 Neutral | $39.38M | -0.71 | -177.04% | ― | 16.13% | -11.56% |
* Healthcare Sector Average
NEOG
Neogen
12.21
6.05
98.21%
BIO
Bio-Rad Laboratories
372.43
42.01
12.71%
BRKR
Bruker
58.23
19.67
51.03%
PACB
Pacific Biosciences
2.25
0.28
14.21%
QTRX
Quanterix
2.83
-2.65
-48.36%
RPID
Rapid Micro Biosystems
0.79
-2.13
-73.02%
Neogen Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Neogen Shareholders Approve Governance, Incentive and Audit Matters
Positive
Oct 7, 2026
On October 1, 2026, Neogen Corporation held its 2026 Annual Meeting of Shareholders, with 176,180,487 of 218,106,005 eligible shares represented. Shareholders elected directors Aashima Gupta, Raphael A. Rodriguez, and Catherine E. Woteki, Ph.D., a...
Executive/Board Changes
Neogen announces board changes following director resignation
Neutral
Aug 7, 2026
Neogen Corporation, a company with a corporate governance structure that includes a Board of Directors, reported a change in its leadership at the board level. The company relies on its directors to provide strategic oversight and guidance to mana...
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.