NeogenFRA:NG2 +5.08%68 Gross Margin % is 46.88% as of Feb. 2026, which is 0% below its 10-year median of 47.02. GuruFocus rates FRA:NG2 with a GF Score™ of 68/100 and a GF Value™ of €10.73 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 803 Medical Devices & Instruments companies, Neogen ranks worse than 61.02% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Neogen's Gross Profit for the
three
months ended in Feb. 2026 was €83.8 Mil. Neogen's Revenue for the
three
months ended in Feb. 2026 was €178.7 Mil. Therefore, Neogen's Gross Margin % for the quarter that ended in Feb. 2026 was 46.88%.
The historical rank and industry rank for Neogen's Gross Margin % or its related term are showing as below:
FRA:NG2'
s Gross Margin % Range Over the Past 10 Years
Min: 45.21 Med: 47.02 Max: 50.19
Current: 45.21
During the past 13 years, the highestGross Margin % of Neogen was 50.19%. The lowest was 45.21%. And the median was 47.02%.
FRA:NG2's Gross Margin % is ranked worse than 61.02% of 803
companies
in the Medical Devices & Instruments industry
Industry Median: 52.03
vs FRA:NG2: 45.21
Neogen had a gross margin of 46.88% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Neogen was 1.00% per year.
Neogen (FRA:NG2) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Neogen had a gross margin of 46.88% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Neogen Gross Margin % Related Terms
Neogen Gross Margin % Historical Data
* Premium members only.
The historical data trend for Neogen's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:NG2 vs UFPT, ALMR, BFLY: Gross Margin % Comparison
For the Medical Devices subindustry, Neogen's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Neogen Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Neogen's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Neogen's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Neogen (FRA:NG2) has a Gross Margin % of 46.88% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Neogen and its competitors. This is near median its historical median of 47.02. Over the past decade, Neogen's Gross Margin % has ranged from 45.21 to 50.19. According to the industry distribution chart, Neogen ranks #490 out of 803 companies in the Medical Devices & Instruments industry, placing it in the top 61%.
Is Neogen's Gross Margin % too high?
Neogen's current Gross Margin % of 46.88% is near median its 10-year median of 47.02. Over the past 10 years, this metric has ranged from a low of 45.21 to a high of 50.19. The Medical Devices & Instruments industry median Gross Margin % is 52.03. Neogen's value of 46.88% is 9.9% below this industry median. Based on the distribution chart, Neogen ranks #490 out of 803 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Neogen has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Neogen's Gross Margin % compare to UFPT and ALMR?
According to the Medical Devices & Instruments industry distribution chart, Neogen ranks #490 out of 803 companies for Gross Margin %. This places Neogen in the lower half of its industry. The industry median Gross Margin % is 52.03. Neogen's value of 46.88% is 9.9% below this benchmark. Historically, Neogen's own Gross Margin % has ranged from 45.21 to 50.19 over the past decade. While the company's 10-year median is 47.02 vs. the industry median of 52.03, Neogen has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.03, based on 803 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Neogen's current Gross Margin % of 46.88% is 9.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Neogen and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neogen's current Gross Margin % is 46.88%, which is near median its own 10-year median of 47.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neogen stock overvalued right now?
Based on GuruFocus' analysis, Neogen (FRA:NG2) is currently considered Modestly Undervalued. The stock's GF Value™ is €10.73, compared to a current price of €8.40 — trading 21.8% below its estimated fair value. The current Gross Margin % is 46.88%, which is near median its 10-year median of 47.02 and 9.9% below the Medical Devices & Instruments industry median of 52.03. Neogen's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Neogen (FRA:NG2), the current Gross Margin % is 46.88% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Neogen (FRA:NG2) Overvalued in 2026?
Based on GuruFocus' analysis, Neogen stock appears to be undervalued.
The current stock price of €8.40 is trading 21.8% below its estimated GF Value™ of €10.73.
GuruFocus considers Neogen to be Modestly Undervalued.
Key valuation signals for FRA:NG2:
Gross Margin %: 46.88% (near median its 10-year median of 47.02)
GF Value™: €10.73 vs. price of €8.40 (21.8% below fair value)
Industry Position: 9.9% below the Medical Devices & Instruments median (#490 of 803)
No single metric tells the full story. See the FRA:NG2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neogen Corporation, headquartered in Lansing, Michigan, develops, manufactures, and markets various products for food and animal safety. In food safety, the company performs diagnostics to detect unintended substances in food and animal feed, to prevent contamination and foodborne illnesses such as foodborne pathogens, spoilage organisms, natural toxins, food allergens, and ruminant by-products. In animal safety, the company segment is engaged in the development, manufacture, marketing and distribution of veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent control products, cleaners, disinfectants, insect control products and genomics testing services.
68GF Score
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