Neogen Stock Price and Research (Nasdaq: NEOG)

By Rob Otman

Neogen (Nasdaq: NEOG) is a $4 billion company today. Investors that bought shares one year ago are sitting on a 29.58% total return. That’s above the S&P 500’s return of 17.46%.

Neogen stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…

[iu-adbox]

✗ Earnings-per-Share (EPS) Growth: Neogen reported a recent EPS growth rate of 51.72%. That’s below the health care equipment and supplies industry average of 62.76%. That’s not a good sign. We like to see companies that have higher earnings growth.

✗ Price-to-Earnings (P/E): The average price-to-earnings ratio of the health care equipment and supplies industry is 44.15. And Neogen’s ratio comes in at 63.49. Its valuation looks expensive compared to many of its competitors.

✓ Debt-to-Equity: The debt-to-equity ratio for Neogen stock is 0%. That’s below the health care equipment and supplies industry average of 46.64%. The company is less leveraged.

✗ Free Cash Flow per Share Growth: Neogen has decreased its FCF per share over the last year relative to its competitors. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.

✓ Profit Margins: The profit margin of Neogen comes in at 16.79% today. And generally, the higher, the better. We also like to see this ratio above competitors. Neogen’s profit margin is above the health care equipment and supplies average of 10.95%. So that’s a positive indicator for investors.

✓ Return on Equity: Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Neogen is 10.84% and that’s above its industry average ROE of 8.88%.

Neogen stock passes three of our six key metrics today. That’s why our Investment U Stock Grader gives it a Hold.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

Do you like investing in small caps, value stocks and dividend payers? Check out 10 High-Yielding Small Cap Stocks Under $15 and you’ll get a list of ten powerful stocks which are all of the above. Click here to learn more. …read more

Source:: Investment You

The post Neogen Stock Price and Research (Nasdaq: NEOG) appeared first on Junior Mining Analyst.