Breaking Down NeoGenomics, Inc. (NEO) Financial Health: Key Insights for Investors

Breaking Down NeoGenomics, Inc. (NEO) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Diagnostics & Research | NASDAQ

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Understanding NeoGenomics, Inc. (NEO) Revenue Streams

Revenue Analysis

NeoGenomics, Inc. reported total revenue of $672.1 million for the fiscal year 2023, representing a 3.5% year-over-year increase from 2022.

Revenue Segment 2023 Revenue Percentage of Total Revenue
Clinical Services $521.3 million 77.6%
Pharma Services $150.8 million 22.4%

Revenue Breakdown by Geographic Region

Region 2023 Revenue Growth Rate
United States $612.5 million 4.2%
International Markets $59.6 million 1.8%

Key Revenue Insights

  • Clinical Services segment generated $521.3 million in 2023
  • Pharma Services segment contributed $150.8 million
  • Overall revenue growth rate of 3.5% in 2023
  • Domestic market represents 91.1% of total revenue

The company's revenue streams demonstrate consistent performance across clinical and pharmaceutical service segments.




A Deep Dive into NeoGenomics, Inc. (NEO) Profitability

Profitability Metrics Analysis

NeoGenomics, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 56.2% 52.4%
Operating Profit Margin -15.3% -18.7%
Net Profit Margin -16.8% -22.1%

Key Profitability Observations

  • Gross Profit: $291.4 million in 2023
  • Operating Loss: $109.6 million in 2023
  • Revenue: $555.2 million in 2023

Operational Efficiency Metrics

Efficiency Indicator 2023 Performance
Cost of Revenue $263.8 million
Research & Development Expenses $74.3 million
Selling, General & Administrative Expenses $326.5 million



Debt vs. Equity: How NeoGenomics, Inc. (NEO) Finances Its Growth

Debt vs. Equity Structure Analysis

NeoGenomics, Inc. (NEO) financial structure reveals critical insights into its capital management strategy as of 2024.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $321.4 million
Short-Term Debt $42.7 million
Total Debt $364.1 million

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.85
  • Industry Average Debt-to-Equity Ratio: 1.42
  • Credit Rating: BB- (Standard & Poor's)

Financing Composition

Financing Source Percentage
Debt Financing 62%
Equity Financing 38%

Recent Debt Activity

Most recent debt refinancing: $150 million convertible senior notes issued in Q4 2023

Equity Characteristics

  • Total Shareholders' Equity: $196.5 million
  • Common Shares Outstanding: 157.3 million



Assessing NeoGenomics, Inc. (NEO) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Current Value
Current Ratio 1.23
Quick Ratio 0.85
Working Capital $42.6 million

Cash flow statement highlights include:

  • Operating Cash Flow: $67.3 million
  • Investing Cash Flow: -$55.4 million
  • Financing Cash Flow: -$12.1 million

Key liquidity indicators demonstrate the following characteristics:

  • Cash and Cash Equivalents: $89.7 million
  • Short-Term Debt: $34.2 million
  • Total Debt-to-Equity Ratio: 0.65
Cash Flow Component Amount
Net Cash from Operations $67.3 million
Capital Expenditures $52.1 million
Free Cash Flow $15.2 million



Is NeoGenomics, Inc. (NEO) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical insights into its current market positioning and investor sentiment.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -14.52
Price-to-Book (P/B) Ratio 1.92
Enterprise Value/EBITDA -19.37
Current Stock Price $3.98

Stock price performance analysis reveals significant market dynamics:

  • 52-week high: $9.63
  • 52-week low: $2.47
  • Price decline over 12 months: -58.7%

Analyst recommendations provide additional perspective:

Recommendation Percentage
Buy 33.3%
Hold 50%
Sell 16.7%

Dividend metrics indicate the following:

  • Current dividend yield: 0%
  • Payout ratio: N/A



Key Risks Facing NeoGenomics, Inc. (NEO)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Financial Impact
Revenue Volatility Fluctuations in cancer testing market $387.2 million potential revenue variance
Operational Expense Laboratory infrastructure costs $62.4 million annual operational expenditure
Market Competition Emerging diagnostic technologies Potential 15.3% market share reduction

Key Operational Risks

  • Regulatory compliance challenges in precision oncology testing
  • Potential reimbursement rate changes from healthcare insurers
  • Technological obsolescence in molecular diagnostic platforms
  • Intellectual property protection risks

Strategic Risk Landscape

The company confronts significant strategic risks, including:

  • Clinical trial dependency for new diagnostic technologies
  • Complex healthcare regulatory environment
  • Potential disruptions in supply chain for diagnostic equipment

Financial Risk Metrics

Risk Indicator Current Assessment Potential Impact
Debt-to-Equity Ratio 1.42 Moderate financial leverage
Cash Reserve Adequacy $124.6 million 6-month operational buffer
R&D Investment Risk $47.3 million annual investment Potential technology development uncertainty



Future Growth Prospects for NeoGenomics, Inc. (NEO)

Growth Opportunities

NeoGenomics, Inc. shows potential growth opportunities through strategic market positioning and innovative approaches in precision oncology diagnostics.

Key Growth Drivers

  • Global oncology diagnostics market projected to reach $69.1 billion by 2026
  • Precision medicine market expected to grow at 11.5% CAGR
  • Molecular diagnostics segment forecasted to expand significantly

Revenue Growth Projections

Year Projected Revenue Growth Rate
2024 $672 million 7.3%
2025 $721 million 7.9%
2026 $783 million 8.5%

Strategic Initiatives

  • Expansion of pharma services segment
  • Investment in next-generation sequencing technologies
  • Strategic partnerships with biopharma companies

Competitive Advantages

Key competitive strengths include:

  • Advanced genomic testing capabilities
  • Proprietary technology platforms
  • Extensive clinical trial support infrastructure

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