Neogen Story

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NEOG -- USA Stock  

USD 72.29  0.89  1.25%

Neogen Invested Capital Average is projected to increase significantly based on the last few years of reporting. The past year's Invested Capital Average was at 483.24 Million. The current year Calculated Tax Rate is expected to grow to 26.54, whereas Average Assets are forecasted to decline to about 638.4 M. If you have been following Neogen you may be considering purchasing. Let's check if sound technical and fundamental indicators will continue to push the price to surge for Neogen's shareholders. The company barely shadows the market. We can now discuss Neogen as a potential investment option for your portfolios.
Published over a month ago
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Should you exit your stake in Neogen (NASDAQ:NEOG)?
Macroaxis provides unbiased advice on Neogen that should be used to complement current analysts and expert consensus on Neogen. Our investment recommendation engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Neogen income statement, its balance sheet, and the statement of cash flows. Potential Neogen investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Neogen investors may use each financial statement separately, they are all related. The changes in Neogen's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Neogen's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Neogen fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Neogen performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Neogen shares is the value that is considered the true value of the share. If the intrinsic value Neogen is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Neogen. Please read more on our fundamental analysis page.

What is Neogen Asset Breakdown?

Neogen reports assets on its Balance Sheet. It represents the amount of Neogen resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Neogen volatility, please check the breakdown of all its fundamentals

Are Neogen Earnings Expected to grow?

The future earnings power of Neogen involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Neogen factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Neogen stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Neogen expected earnings.

Neogen Gross Profit

Neogen Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Neogen previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Neogen Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

What is driving Neogen Investor Appetite?

There are few distinct groups of Neogen stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Neogen is distributed among investors.

Ownership Allocation

Neogen holds a total of 53.03 Million outstanding shares. The majority of Neogen outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Neogen to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Neogen. Please pay attention to any change in the institutional holdings of Neogen as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Institutions
97.16%
Retail Investors1.88
Insiders0.96
Institutions97.16
 2017 2018 2019 2020 (projected)
Receivables79.09 M82.58 M84.68 M68.46 M
Inventories76 M85.99 M95.05 M102.56 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Neogen has an asset utilization ratio of 92.57 percent. This indicates that the company is making $0.93 for each dollar of assets. An increasing asset utilization means that Neogen is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
432.6 M
Assets Non Current
238 M
Current Assets432.57 Million51.84
Assets Non Current237.99 Million28.52
Goodwill161.91 Million19.4
Tax Assets2.01 Million0.24

Will price continue to surge in October 2020?

Latest downside deviation is at 2.14. Neogen currently demonstrates below-verage downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.07. However, we do advice investors to further question Neogen expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Neogen

Although some other firms within the diagnostics & research industry are still a little expensive, even after the recent corrections, Neogen may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in Neogen. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Neogen.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Neogen. Please refer to our Terms of Use for any information regarding our disclosure principles.

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