Neogen Corporation Intrinsic Stock Value – NEOGEN CORPORATION Reports Fourth Quarter Earnings Results for 2023
August 22, 2023
🌥️Earnings Overview
On July 27, 2023, NEOGEN CORPORATION ($NASDAQ:NEOG) reported its earnings results for the fourth quarter ending May 31, 2023. The revenue for the quarter totaled USD 241.8 million, representing a 72.6% increase year-over-year. Unfortunately, the company’s net income decreased 62.8% to USD 5.6 million compared to the same period in the prior year.
Market Price
The stock opened at $23.1 and closed at $22.2, representing a decrease of 1.5% from its previous closing price of $22.6. This news disappointed many investors, who had expected better performance from the company. The decrease in net income was mainly attributed to higher operating costs associated with the company’s new product launches. Overall, NEOGEN CORPORATION‘s fourth quarter earnings report was a mixed bag of good and bad news.
While the company had strong earnings per share, its total revenue and net income were lower than in the same period last year. Nevertheless, the company is still in a strong financial position and looks set for further growth in the coming year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Neogen Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 822.45 | -22.87 | -2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Neogen Corporation. More…
| Operations | Investing | Financing |
| -29.55 | -97.23 | 6.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Neogen Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.55k | 1.42k | 14.49 |
Key Ratios Snapshot
Some of the financial key ratios for Neogen Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.3% | -17.8% | 4.6% |
| FCF Margin | ROE | ROA |
| -10.0% | 0.7% | 0.5% |
Analysis – Neogen Corporation Intrinsic Stock Value
GoodWhale has conducted an analysis of NEOGEN CORPORATION’s wellbeing. Our proprietary Valuation Line calculated the intrinsic value of NEOGEN CORPORATION’ share to be around $27.7. Currently, NEOGEN CORPORATION stock is trading at a price of $22.2, which is 19.8% lower than its estimated intrinsic value. This suggests that the stock is currently undervalued and presents an interesting buying opportunity for investors. More…
Peers
The company’s Food Safety Division offers a complete line of diagnostic test kits, reagents, and equipment used by food producers and processors to test for the presence of foodborne pathogens, natural toxins, food allergens, genetic modifications, and other contaminants in food. The Animal Safety Division provides a comprehensive array of products to detect and remove foodborne pathogens from animals before they enter the food supply as well as products to identify and remove disease-causing organisms from animal feed and the environment. The company’s competitors include Mettler-Toledo International Inc, Agilent Technologies Inc, Beijing Scitop Bio-tech Co Ltd.
– Mettler-Toledo International Inc ($NYSE:MTD)
Mettler-Toledo International Inc is a manufacturer and marketer of precision instruments for use in laboratory, industrial and food retailing applications. The company has a market capitalization of 26.43 billion as of 2022 and a return on equity of 1430.18%. The company’s products are used in a variety of applications, including the weighing and measuring of ingredients in the food industry, the weighing of packages in the shipping industry and the measuring of chemicals and other substances in the laboratory.
– Agilent Technologies Inc ($NYSE:A)
Agilent Technologies Inc, a global technology leader, has a market cap of 38.45B as of 2022. The company’s return on equity is 19.27%. Agilent Technologies Inc focuses on providing life science, diagnostic and applied market laboratories worldwide with instruments, services, consumables, applications and expertise. The company serves customers in life sciences, diagnostics and applied markets.
– Beijing Scitop Bio-tech Co Ltd ($SZSE:300858)
Beijing Scitop Bio-tech Co Ltd has a market cap of 3.67B as of 2022, a Return on Equity of 8.1%. The company is engaged in the business of researching, developing, manufacturing and selling pharmaceutical and medical products. Its products include traditional Chinese medicine, Western medicine, health food and cosmetics. The company has a strong research and development team and a comprehensive product portfolio. It has a wide range of products and a strong market presence in China.
Summary
NEOGEN CORPORATION‘s fourth quarter results for the period ending May 31, 2023 showed strong revenue growth of 72.6% compared to the same period in the prior year. Net income, however, fell 62.8% to USD 5.6 million. Investors should carefully evaluate NEOGEN CORPORATION’s fundamentals to decide whether it is a good investment opportunity.
Factors such as the company’s financial position, balance sheet strength, competitive edge, and growth potential should be taken into account. NEOGEN CORPORATION’s performance in terms of revenue growth and profitability could also be considered when making an investment decision.
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