Neogen Corporation (NEOG) stock analysis

In our weekly check, Neogen Corporation is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 8 pass, warnings: 5, red flags: 9.

About Neogen Corporation

Neogen Corporation is a Healthcare company (Diagnostics & Research) based in the United States, listed on NASDAQ as NEOG.

What our checks show for NEOG

Red flags

• Net debt is 5.7x a year of EBITDA (debt/equity 0.37). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-0.1x): interest is paid from cash or new debt.
• The net margin fell by 15.5 points over 5 years, to -6.3%: the company keeps less of each sale as profit.
• Weak EPS growth
• The company is losing money: the net margin is -6.3%.
• The price swings a lot: 52.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 91% from a peak. Would you have held through that?
• Beta 1.79: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Analysts expect only about 0.9% a year of growth in revenue.
• Revenue grew only 2.4% a year over the last 3 years.
• Free cash flow is only 3.6% of revenue.
• The stock is still below its previous peak.
• Pay in shares equals 36.2% of free cash flow: it dilutes shareholders.

Strengths

• The gross margin is 47.4% and has risen by 1.3 points: pricing power is holding.
• Operating cash flow is 1.48x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 36.9% a year over the next years.
• Analysts expect the net margin to improve by 21.2 points from today's -6.3%.
• Actively traded: about 3.3 million shares a day.

Next earnings report: 2027-01-14

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Questions

What grade does Neogen Corporation (NEOG) have?

In our weekly check, Neogen Corporation is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 8 pass, warnings: 5, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NEOG stock?

This week's biggest flags for Neogen Corporation: High debt, Weak interest cover, Margins falling. In total 14 of 22 checks show a warning or a red flag.

What does Neogen Corporation do?

Neogen Corporation is a Healthcare company (Diagnostics & Research) based in the United States, listed on NASDAQ as NEOG.

When does Neogen Corporation report earnings next?

The next earnings report is expected on 2027-01-14. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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