Neogen Corporation (NASDAQ:NEOG) Has Attractive Fundamentals
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Neogen Corporation (NASDAQ:NEOG) due to its excellent fundamentals in more than one area. NEOG is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Neogen here.
Flawless balance sheet with proven track record
In the previous year, NEOG has ramped up its bottom line by 45%, with its latest earnings level surpassing its average level over the last five years. Not only did NEOG outperformed its past performance, its growth also surpassed the Medical Equipment industry expansion, which generated a 17% earnings growth. This paints a buoyant picture for the company. NEOG’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that NEOG has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Investors should not worry about NEOG’s debt levels because the company has none! This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$3.2b market cap company. NEOG has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Next Steps:
For Neogen, there are three important factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for NEOG’s future growth? Take a look at our free research report of analyst consensus for NEOG’s outlook.
Valuation: What is NEOG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NEOG is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NEOG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
