This firm currently holds 1.22
M in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest Neogen Cp is not taking enough advantage from borrowing.
Neogen Cp trade recommendations module can be used to check and cross-verify current advice provided by
analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time.
Neogen financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Neogen, including all of Neogen's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Neogen assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Neogen debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
How important is Neogen's Liquidity
Neogen
financial leverage refers to using borrowed capital as a funding source to finance Neogen ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Neogen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Neogen's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Neogen's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Neogen's total debt and its cash.
A Deeper look at Neogen
The company reported the previous year's revenue of 450.11
M. Net Income was 61.47
M with profit before overhead, payroll, taxes, and interest of 196.28
M.
Asset Breakdown
286.6 M
Assets Non Current
| Total Assets | 774.25 Million |
| Current Assets | 487.62 Million |
| Assets Non Current | 286.63 Million |
| Goodwill | 194.67 Million |
| Tax Assets | 2.08 Million |
Momentum Analysis of Neogen Cp suggests possible reversal in January
Latest market risk adjusted performance is at 0.12.
As of the 20th of December, Neogen Cp secures the Risk Adjusted Performance of 0.0526,
downside deviation of 1.84, and Mean Deviation of 1.48. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of Neogen Cp, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen
technical drivers for Neogen Cp, which can be compared to its peers in the industry. Please verify
Neogen Cp treynor ratio, as well as the
relationship between the downside variance and
kurtosis to decide if Neogen Cp is priced some-what accurately, providing market reflects its recent price of 44.42 per share. Given that Neogen Cp has
jensen alpha of 0.0811, we recommend you to check Neogen Cp's last-minute market performance to make sure the company can sustain itself at a future point.
The Bottom Line
Although many of the other players within the diagnostics & research industry are still a little expensive, even after the recent corrections, Neogen Cp may offer a potential longer-term growth to shareholders. To conclude, as of the 20th of December 2021, our final 90 days buy vs. sell advice on the firm is
Strong Hold. We believe Neogen Cp is currently
fairly valued with
close to average probability of financial unrest for the next two years.
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
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik 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
[email protected]
