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 of 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.
How effective is Neogen in utilizing its assets?
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. By effectively utilizing its assets, Neogen aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Health Care Equipment & Supplies space. 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 Neogen's
gross profit and other
fundamental indicators for more details.
A Deeper look at Neogen
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.
| Retail Investors | 1.88 |
| Insiders | 0.96 |
| Institutions | 97.16 |
| 2017 | 2018 | 2019 | 2020 (projected) |
Receivables | 79.09 M | 82.58 M | 84.68 M | 68.46 M | Inventories | 76 M | 85.99 M | 95.05 M | 102.56 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 Assets432.6 M | Assets Non Current238 M | | |
| Current Assets | 432.57 Million | 51.84 |
| Assets Non Current | 237.99 Million | 28.52 |
| Goodwill | 161.91 Million | 19.4 |
| Tax Assets | 2.01 Million | 0.24 |
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.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Neogen. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com