Neogen Chemicals Limited
Neogen Chemicals Limited Fundamental Analysis
Neogen Chemicals Limited (NEOGEN.NS) shows weak financial fundamentals with a PE ratio of 178.64, profit margin of 2.41%, and ROE of 2.50%. The company generates $8.2B in annual revenue with strong year-over-year growth of 12.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEOGEN.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNEOGEN.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEOGEN.NS shows balanced valuation metrics.
Growth Score
ModerateNEOGEN.NS shows steady but slowing expansion.
Financial Health Score
ModerateNEOGEN.NS shows balanced financial health with some risks.
Profitability Score
WeakNEOGEN.NS struggles to sustain strong margins.
Key Financial Metrics
Is NEOGEN.NS Expensive or Cheap?
P/E Ratio
NEOGEN.NS trades at 178.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NEOGEN.NS's PEG of -7.35 indicates potential undervaluation.
Price to Book
The market values Neogen Chemicals Limited at 4.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.79 times EBITDA. This signals the market has high growth expectations.
How Well Does NEOGEN.NS Make Money?
Net Profit Margin
For every $100 in sales, Neogen Chemicals Limited keeps $2.41 as profit after all expenses.
Operating Margin
Core operations generate 34.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.50 in profit for every $100 of shareholder equity.
ROA
Neogen Chemicals Limited generates $0.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neogen Chemicals Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Neogen Chemicals Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
NEOGEN.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
178.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How NEOGEN.NS Stacks Against Its Sector Peers
| Metric | NEOGEN.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 178.64 | 27.18 | Worse (Expensive) |
| ROE | 2.50% | 860.00% | Weak |
| Net Margin | 2.41% | -121084.00% (disorted) | Weak |
| Debt/Equity | 1.41 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.58 | 4.81 | Neutral |
| ROA | 0.86% | -7173.00% (disorted) | Weak |
NEOGEN.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Neogen Chemicals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
124.63%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
7.49%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
601.68%
Industry Style: Cyclical, Commodity, Value
High Growth