NeoGenomics (NEO:NAS) Fundamental Valuation Report

NeoGenomics (NEO:NAS) Fundamental Valuation Report

Fundamental Valuation Report


Healthcare:Diagnostics & Research

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Close Price/Date
$41.09 (USD) 05/07/2021

Weighted Valuation
$40.17 (USD)

Overall Rating
Fairly valued to slightly Overvalued by 2.2%

Valuation Models Comparables: $40.98 (USD)
Adjusted Book Value: $33.54 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Fairly valued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $46.00 this stock is Undervalued

Company Overview (NEO:NAS USD)

Price 41.09
Range 40.92 – 43.93
52 week 25.65 – 59.88
Open 42.90
Vol / Avg. 1.52M/764206
Mkt cap 4.83B
P/E 1051.50
Div/yield 0.00/0.00
EPS 0.04
Shares 117.65M
Beta 0.68

Company Description

NeoGenomics Inc operates a network of cancer-focused genetic testing laboratories in the United States as well as a laboratory in Switzerland. The company operates into two segments namely Clinical Services and Pharma Services. It offers types of genetic and molecular testing services namely Cytogenetics, Fluorescence In-Situ Hybridization, Flow cytometry, Immunohistochemistry, Molecular testing, Pathology consultation. The company generates revenue from Clinical Services.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for NEO:NAS

Using a discounted cash flow model we generated an intrinsic value of ($3.06) (USD) for NEO:NAS

Comparables Model

Using similar companies and price based ratios we generated a valuation of $40.98 (USD) for NEO:NAS. We also generated a valuation of $53.88 (USD) using other metrics and comparables.
The comparable companies were DermTech (DMTK:NAS), Fulgent Genetics (FLGT:NAS), Medpace Hldgs (MEDP:NAS), Senseonics Holdings (SENS:ASE) and Syneos Health (SYNH:NAS).

Company NEO:NAS End Date Value
Earnings/Share $0.04 (USD)
Book Value/Share $7.17 (USD)
Sales/Share $3.96 (USD)
Cash Flow/Share $0.09 (USD)
EBITDA/Share $0.26 (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) 0.0
$51.79 (USD) -14.1
$156.63 (USD) -26.6
($0.39) (USD) 0.0
$4.90 (USD) 0.0
0.00 PE Ratio 30.53 0.00 8.38 39.17 0.00 44.05
5.73 PB Ratio 7.22 15.50 3.80 6.92 0.00 2.67
10.38 PS Ratio 39.58 98.15 4.26 6.51 87.04 1.96
444.59 PCF Ratio 16.95 0.00 12.77 23.31 0.00 14.77
324.14 EV to EBITDA 19.09 0.00 6.41 28.73 0.00 22.14


Using a multiples approach we generated a valuation of  $21.06 (USD) for NEO:NAS

Company NEO:NAS End Date Value
Earnings/Share $0.04 (USD)
Book Value/Share $7.17 (USD)
Sales/Share $3.96 (USD)
Cash Flow/Share $0.09 (USD)
EBITDA/Share $0.26 (USD)
Price Based on Comps Adjustment Factor
$29.62 (USD) 0
$37.89 (USD) 0
$18.87 (USD) 0
$4.94 (USD) 0
$13.98 (USD) 0
Ratios Ratio Average
PE Ratio 740.48
PB Ratio 5.28
PS Ratio 4.77
PCF Ratio 53.43
EV to EBITDA 54.50

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  NEO:NAS for the last 10 years was  5.41

We ran the Adjusted Book Value for  NEO:NAS and generated a book value of  $6.19 (USD)
By multiplying these we get an adjusted valuation of  $33.54 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for NEO:NAS. The 1 analysts have a concensus valuation for NEO:NAS for 2021 of $46.00 (USD).

NEO:NAS NeoGenomics

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2021-5-6

Current Price: 41.09 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS -0.18 -0.27
# EPS Analysts 1 1
Mean Revenue 504.10 583.40
# Revenue Analysts 1 1
Mean Target Price 46.00
Mean Cash Flow 0.43 0.28
Mean Net Income -22.30 -35.80
Mean Debt Outstanding
Mean Tax Rate 38.10 30.30
Mean Growth Rate
Mean Capital Expenditure 29.50 29.90

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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