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Will Neogen (NASDAQ:NEOG) continue to grow in January?

December 20, 2021  By Gabriel Shpitalnik
Macroaxis Story
Neogen Cp is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 21st of December 2021. Neogen Cp Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 19.11. The current year PPandE Turnover is expected to grow to 6.50, whereas Average Assets are forecasted to decline to about 731.4 M. As many baby boomers are still indifferent towards healthcare space, it makes sense to digest Neogen Cp as a unique choice for millenniums.
Published over a year ago
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Reviewed by Michael Smolkin

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.

How is Neogen allocating its cash?

To perform a cash flow analysis of Neogen, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Neogen is receiving and how much cash it distributes out in a given period. The Neogen cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

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
194.7 M
Goodwill
487.6 M
Current Assets
Total Assets774.25 Million
Current Assets487.62 Million
Assets Non Current286.63 Million
Goodwill194.67 Million
Tax Assets2.08 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.

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Editorial 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.

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