MeritValue

NEOGEN CORP

NEOGdata completeness 100%16 fiscal years on file
The thesis, from the filings

NEOGEN CORP earns about -3% on invested capital, but has diluted owners by 102% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$468.5M1$527.2M2$822.4M3$924.2M3$894.7M3
Net income$60.9M4$48.3M5−$22.9M6−$9.42M6−$1.09B6
Operating cash flow$81.1M7$68M8$41M9$35.3M9$58.2M9
Capital expenditure$26.7M10$24.4M11$65.8M12$111.4M12$104.6M12
Free cash flow (derived)$54.4M7$43.6M8−$24.7M9−$76.2M9−$46.4M9
Total debt——$885.4M13$890.8M14$894.1M14
Cash & equivalents$75.6M15$44.5M16$163.2M17$170.6M18$129M18
Diluted shares107.1M108.0M188.9M216.5M216.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$95.5
your share of equity
Profit it earned you last year
−$50.35
Free cash flow it threw off
−$2.14
Debt you’d be carrying
$41.22

10 shares is a claim on $95.5 of net worth that earned you −$50.35 and generated −$2.14 of cash last year, against $41.22 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-3% avg · 5y
FY21 8%FY22 6%FY23 0%FY24 1%FY25 -30%

It earned an average -3% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+102% shares · 5y

Share count is up 102% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-05-31 · accession 0000950170-23-042861 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-05-31 · accession 0000950170-24-087670 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-05-31 · accession 0000950170-25-100064 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-05-31 · accession 0000950170-23-042861 (NetIncomeLoss)
  5. 10-K · period ending 2022-05-31 · accession 0000950170-24-087670 (NetIncomeLoss)
  6. 10-K · period ending 2023-05-31 · accession 0000950170-25-100064 (NetIncomeLoss)
  7. 10-K · period ending 2021-05-31 · accession 0000950170-23-042861 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-05-31 · accession 0000950170-24-087670 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-05-31 · accession 0000950170-25-100064 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-05-31 · accession 0000950170-23-042861 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-05-31 · accession 0000950170-24-087670 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-05-31 · accession 0000950170-25-100064 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2023-05-31 · accession 0000950170-24-087670 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-05-31 · accession 0000950170-25-100064 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-05-31 · accession 0001193125-22-202902 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-05-31 · accession 0000950170-23-042861 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-05-31 · accession 0000950170-24-087670 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-05-31 · accession 0000950170-25-100064 (CashAndCashEquivalentsAtCarryingValue)