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Neogen (Neogen) Gross Margin %

: 51.08% (As of Feb. 2024)
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Gross Margin % is calculated as gross profit divided by its revenue. Neogen's Gross Profit for the three months ended in Feb. 2024 was $116.9 Mil. Neogen's Revenue for the three months ended in Feb. 2024 was $228.8 Mil. Therefore, Neogen's Gross Margin % for the quarter that ended in Feb. 2024 was 51.08%.


The historical rank and industry rank for Neogen's Gross Margin % or its related term are showing as below:

NEOG' s Gross Margin % Range Over the Past 10 Years
Min: 45.91   Med: 47.05   Max: 50.97
Current: 50.97


During the past 13 years, the highest Gross Margin % of Neogen was 50.97%. The lowest was 45.91%. And the median was 47.05%.

NEOG's Gross Margin % is ranked better than
56.02% of 216 companies
in the Medical Diagnostics & Research industry
Industry Median: 45.595 vs NEOG: 50.97

Neogen had a gross margin of 51.08% for the quarter that ended in Feb. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Neogen was 0.70% per year.


Neogen Gross Margin % Historical Data

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.

* Premium members only.

Neogen Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.34 46.94 45.91 46.10 49.36

Neogen Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.47 50.94 50.99 50.85 51.08

Competitive Comparison

For the Diagnostics & Research 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 % Distribution

For the Medical Diagnostics & Research 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.



Neogen Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Neogen's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )=Gross Profit (A: May. 2023 ) / Revenue (A: May. 2023 )
=406 / 822.447
=(Revenue - Cost of Goods Sold) / Revenue
=(822.447 - 416.492) / 822.447
=49.36 %

Neogen's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=116.9 / 228.812
=(Revenue - Cost of Goods Sold) / Revenue
=(228.812 - 111.929) / 228.812
=51.08 %

* 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  (NAS:NEOG) 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 51.08% for the quarter that ended in Feb. 2024 => 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

Thank you for viewing the detailed overview of Neogen's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Neogen (Neogen) Business Description

Traded in Other Exchanges
Address
620 Lesher Place, Lansing, MI, USA, 48912
Neogen Corporation, headquartered in Lansing, Michigan, develops, manufactures, and markets various products for food and animal safety. In food safety (70% of post-merger sales), Neogen performs diagnostics to detect unintended substances in food and animal feed, such as pathogens, allergens, and drug residues, for food and feed processing companies. In animal safety (20% of post-merger sales), Neogen sells veterinary instruments, pharmaceuticals, disinfectants, and genomics tests for animals, including cattle, horses, and canines. Sales in the United States account for 60% of total revenue, while international markets, including Canada, Europe, Asia, and Latin America, account for the remaining 40%.
Executives
William T Boehm director
Douglas Edward Jones officer: Vice President, CCO 620 LESHER PLACE, LANSING MI 48912
Jason Warren Lilly officer: Vice President 620 LESHER PLACE, LANSING MI 48912
James P Tobin director 620 LESHER PLACE, LANSING MI 48895
David H. Naemura officer: VP & CFO C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Amy M Rocklin officer: Chief Legal & Reg. Officer 620 LESHER PLACE, LANSING MI 48912
Steven J. Quinlan officer: VP & CFO 620 LESHER PLACE, LANSING MI 48912
Jeffrey D Capello director C/O NEOGEN CORP., 620 LESHER PLACE, LANSING MI 48912
Aashima Gupta director C/O NEOGEN CORPORATION, 620 LESHER PLACE, LANSING MI 48912
John Edward Adent officer: Chief Executive Officer 822 7TH STREET, SUITE 740, GREELEY CO 80631
Darci L Vetter director 620 LESHER PLACE, LANSING MI 48912
Ronald D Green director 620 LESHER PLACE, LANSING MI 48912
James C Borel director 1007 MARKET STREET, WILMINGTON DE 19898
Terri A Morrical officer: General Manager
G Bruce Papesh director 726 APPLEGATE LANE, EAST LANSING MI 48823