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Neogen Corp (NEOG) stock analysis

NEOGNasdaqIn Vitro & In Vivo Diagnostic SubstancesFiscal year ends May 31
Financials through Q1 FY2027, quarter ended Aug 31, 2026Last filing: 10-Q on Oct 7, 2026Score 7/3054% above fair value
$11.19−0.41 (-3.53%)

Close on Nov 12, 2026Market cap $2.44BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth2Performance3Health1Dividend0

Weak7 of 30 checks passed

Neogen passes 7 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
2/6
Past performance
3/6
Financial health
1/6
Dividend
0/6

What stands out

  • Guidance raised

    Neogen raised its fiscal year 2027 total revenue outlook on Oct 6, 2026.

  • P/B below the industry

    Neogen's price-to-book of 1.21 is below the Drugs median of 2.29.

  • Gross margin improving

    Gross margin was 47.4% over the last twelve months, against 46.4% a year earlier.

  • Return on equity above the industry

    Neogen's return on equity of -2.7% is above the Drugs median of -58.9%.

What to watch

  • Margin of safety under 20%

    The price is 53.7% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $11.60 is above our fair value estimate of $7.55.

  • Return on equity under 15%

    Return on equity was -2.7% over the last twelve months and averaged -7.6% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -0.2%, below the 10% that usually covers the cost of capital.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA above its 5-year median

    Neogen's EV/EBITDA of 35.9 is above its 5-year median of 28.3.

  • P/B below the industry

    Neogen's price-to-book of 1.21 is below the Drugs median of 2.29.

  • Trading above fair value

    The share price of $11.60 is above our fair value estimate of $7.55.

  • Margin of safety under 20%

    The price is 53.7% above fair value, so there is no margin of safety.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew 1.9% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew -0.3% over the last twelve months; the Drugs median is 8.0%.

  • Guidance raised

    Neogen raised its fiscal year 2027 total revenue outlook on Oct 6, 2026.

  • Gross margin improving

    Gross margin was 47.4% over the last twelve months, against 46.4% a year earlier.

Past performance3/6

  • Return on equity under 15%

    Return on equity was -2.7% over the last twelve months and averaged -7.6% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -0.2%, below the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Neogen's return on equity of -2.7% is above the Drugs median of -58.9%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -6.3% over the last twelve months, against a 5-year average of -23.5%.

  • Net margin above the industry

    Neogen's net margin of -6.3% is above the Drugs median of -53.0%.

Financial health1/6

  • High debt

    Debt is 74.5% of shareholders' equity, above the 40% we consider low.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 5.5% of total debt; we look for at least 20%.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets cover short-term debts

    Current assets are 3.90 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 1.43; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Neogen has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$7.55

The share price is 54% above this estimate.

20%+ below
Near fair value
20%+ above
$11.60Price$7.55Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA22.7×28.3×17.1×$5.0178%
P/B1.7×1.2×2.3×$16.4322%
Fair value$7.55100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Drugs median 25.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$44.75M
Value traded per 1% price move
$17.52M

Downside

Medium risk

Typical loss in a bad month
20.0%
Volatility (annualized)
58%
Sharpe ratio, 1 year
1.35
Beta to the S&P 500 (5Y)
1.20

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

46.9%+1.0 pts over 5 years

Operating margin

-2.5%−18.3 pts over 5 years

Net margin

-0.9%−13.9 pts over 5 years

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