Neogen Corporation (NEOG) shares have been under recent scrutiny as the Piotroski F-Score of 5 has piqued interest from quant investors. The stocks are rated on a score of 0 to nine based on nine parameters, nine being the best. For every criteria that is met the company is given one point, if it is not met, then no points are awarded. The points are then added up to determine the best value stocks. Piotroski said financial strength could be determined using data solely from financial statements. Since the score is based on recent performance and therefore we can say it points out to the current out performer in terms of profitability and financial improvement on relative basis to its past. The Piotroski F-score was first published in 2000.

When undertaking stock analysis, investors might be searching for companies that are presently undervalued. Undervalued stocks may provide a higher chance of realizing big gains. Finding undervalued stocks that are high quality can be the biggest challenge for the investor. Many investors will dig into the numbers and look for companies that have been consistently making lots of money and performing well on the earnings front. 

Value Composite Three (VC3) is another adaptation of O’Shaughnessy’s value composite but here he combines the factors used in VC1 with buyback yield. This factor is interesting for investors who’re looking for stocks with the best value characteristics, but are indifferent to whether these companies pay a dividend.

VC3 is the combination of the following factors:

Price-to-Book
Price-to-Earnings
Price-to-Sales
EBITDA/EV
Price-to-Cash flow
Buyback Yield

As with the VC1 and VC2, companies are put into groups from 1 to 100 for each ratio and the individual scores are summed up. This total score is then put into groups again from 1 to 100. 1 is cheap, 100 is expensive. Neogen Corporation (NEOG) has a VC3 of 58.

The scorecard also displays variants of the VC3 where the score is calculated for the selected company compared to peer companies in the same industry, industry group or sector.

Return on Assets

There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Neogen Corporation (NEOG) is 0.103939. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

Volatility 12 m, 6m, 3m

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Neogen Corporation (NEOG) is 36.0685. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Neogen Corporation (NEOG) is 33.1596. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 34.0546.

Enterprise Value

Neogen Corporation (NEOG) based out of United States and resides in the Health Care sector, has a market cap of 2888389.002 after recently touching 62.03 on a recent bid. Neogen Corporation (NEOG) sees an average of trading volume of 9796.131. Neogen Corporation (NEOG) competes in the Health Care Equipment and Supplies industry.

Free Cash Flow Yield (FCF Yield) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Neogen Corporation (NEOG) is 0.016406. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. Looking out to the 5 year FCF yield, this gives investors the overall quality of the free cash flow over a longer period of time. The FCF five year yield for Neogen Corporation (NEOG) stands at 0.009989. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Investors may be looking ahead to the next couple of quarters trying to gauge whether the bulls will stay in charge or if the bears will start to take over. Of course, nobody knows for sure which way the market will turn, but being ready for any situation can greatly help the investor prepare. Many investors will be trying to find that balance between being too aggressive and too conservative with stock selection. This can be a tricky aspect to address as there are so many different factors that can come into play. Studying the important pieces of economic data on a regular basis can help with crafting a legitimate hypothesis about where stocks will be in the future.