Neogen Navigates Post-3M Food Safety Deal

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Neogen Corporation ($NASDAQ:NEOG), a leader in food and animal safety, has successfully navigated the aftermath of its 3M Food Safety agreement. With this move, Neogen acquired a global leader in the detection of foodborne pathogens, food allergen testing, and meat speciation tests, further solidifying its position as a leader in food safety. Neogen Corporation is a publicly traded biotechnology company headquartered in Lansing, Michigan.

The company’s innovative products help customers detect potential risks in the food supply chain, including foodborne pathogens, allergens, and unwanted animal species. Neogen’s stock is traded on the NASDAQ exchange under the ticker symbol NEOG.

Share Price

On Tuesday, NEOGEN CORPORATION stock opened at $19.9 and closed at $20.4, up by 1.2% from previous closing price of 20.1. This shows that the company is successfully navigating the post-3M Food Safety Deal. As a result of the deal, Neogen has seen increased demand for its food safety products, leading to the positive performance in stock prices. The company is further expanding its portfolio of food safety products, which is expected to drive growth in the coming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Neogen Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Neogen Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Neogen Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Neogen Corporation are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of NEOGEN CORPORATION‘s wellbeing and found that based on our Star Chart, the company is strong in growth, medium in profitability and weak in asset and dividend. Due to this, we have classified NEOGEN CORPORATION as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who may be interested in such a company would likely be looking for high returns in the long run and are willing to take the risk of greater volatility. NEOGEN CORPORATION has an intermediate health score of 6/10 with regard to its cashflows and debt which means it might be able to safely ride out any crisis without the risk of bankruptcy. 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 is an attractive investment opportunity, primarily because of its recent acquisition of 3M’s Food Safety Division. This acquisition solidifies NEOGEN’s position as a leader in food safety solutions, and is expected to generate additional revenue and expand the company’s customer base. Other factors making NEOGEN a desirable investment include its strong balance sheet with no debt, high return on equity, and consistent dividend payout. NEOGEN also has a proven track record of innovation and is well-positioned to capitalize on the growing demand for food safety solutions.

Additionally, NEOGEN has invested heavily in employee training and development, which has helped it stay competitive in the market and ensure long-term growth prospects. Overall, NEOGEN is an attractive investment option for investors seeking long-term capital appreciation.