Neogenomics Inc (NASDAQ: NEO)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001077183
Market Cap 1.65 Bn
P/B 1.97
P/E -14.58
P/S 2.33
ROIC (Qtr) -9.88
Div Yield % 0.00
Rev 1y % (Qtr) 11.90
Total Debt (Qtr) 410.31 Mn
Debt/Equity (Qtr) 0.49

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 164.12M provide 36.41x coverage of short-term debt 4.51M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 556.27M provide exceptional 352.97x coverage of deferred revenue 1.58M, showing strong service capability backing.
  • Operating cash flow of 13.69M provides strong 8.68x coverage of deferred revenue 1.58M, indicating service delivery capability.
  • Strong free cash flow of (17.05M) provides 2.64x coverage of acquisition spending (6.45M), indicating disciplined M&A strategy.
  • Tangible assets of 556.27M provide robust 7.86x coverage of other current liabilities 70.75M, indicating strong asset backing.

Bear case

  • Operating cash flow of 13.69M barely covers its investment activities of (11.50M), with a coverage ratio of -1.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (11.50M) provide weak support for R&D spending of 35.87M, which is -0.32x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 164.12M provide limited coverage of acquisition spending of (6.45M), which is -25.43x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 155.30M relative to inventory of 28.46M (5.46 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 13.69M shows concerning coverage of stock compensation expenses of 41.60M, with a 0.33 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 229.80 Bn 34.98 5.25 35.68 Bn
2 DHR Danaher Corp /De/ 168.69 Bn 48.16 6.95 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.54 Bn 56.01 13.81 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.51 Bn 33.13 2.67 15.19 Bn
5 A Agilent Technologies, Inc. 41.38 Bn 31.76 5.96 3.35 Bn
6 NTRA Natera, Inc. 32.34 Bn -104.61 15.28 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.48 Bn 36.47 7.73 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.36 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.39 2.83
EV to Cash from Ops. EV/CFO 139.65 19.40
EV to Debt EV to Debt 4.66 55.09
EV to EBIT EV/EBIT -17.50 19.01
EV to EBITDA EV/EBITDA -43.14 4.60
EV to Free Cash Flow [EV/FCF] EV/FCF -112.11 -2.36
EV to Market Cap EV to Market Cap 1.16 1.57
EV to Revenue EV/Rev 2.70 5.06
Price to Book Value [P/B] P/B 1.97 1.40
Price to Earnings [P/E] P/E -14.58 19.36
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -2.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) -22.86 -129.02
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 15.84 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -54.66 24.08
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -52.62 -55.31
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -336.02 -457.27
EBIT Growth (1y) % EBIT 1y % (Qtr) -49.28 -42.01
EBT Growth (1y) % EBT 1y % (Qtr) -42.79 -72.92
EPS Growth (1y) % EPS 1y % (Qtr) -44.26 -70.88
FCF Growth (1y) % FCF 1y % (Qtr) 20.75 56.94
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.90 185.76
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.68 1.23
Current Ratio Curr Ratio (Qtr) 3.91 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.49 -0.84
Interest Cover Ratio Int Coverage (Qtr) -22.86 -129.02
Times Interest Earned Times Interest Earned (Qtr) -22.86 -129.02
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4.60 -98.25
EBIT Margin % EBIT Margin % (Qtr) -15.40 -116.67
EBT Margin % EBT Margin % (Qtr) -16.07 -115.28
Gross Margin % Gross Margin % (Qtr) 43.50 44.77
Net Profit Margin % Net Margin % (Qtr) -16.00 -114.12