Neogen (FRA:NG2) Operating Margin %: -1.56% (As of Feb. 2026)


FRA:NG2 Neogen Corp FRA:NG2
68 GF Score
Price €7.65
GF Value €10.66
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Neogen Operating Margin %?

Neogen FRA:NG2 -4.30% 68 Operating Margin % is -1.56% as of Feb. 2026. GuruFocus rates FRA:NG2 with a GF Score™ of 68/100 and a GF Value™ of €10.66 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 816 Medical Devices & Instruments companies, Neogen ranks worse than 60.91% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Neogen's Operating Income for the three months ended in Feb. 2026 was €-2.8 Mil. Neogen's Revenue for the three months ended in Feb. 2026 was €178.7 Mil. Therefore, Neogen's Operating Margin % for the quarter that ended in Feb. 2026 was -1.56%.

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

FRA:NG2' s Operating Margin % Range Over the Past 10 Years
Min: -4.37   Med: 15.99   Max: 18.13
Current: -4.37


FRA:NG2's Operating Margin % is ranked worse than
60.91% of 816 companies
in the Medical Devices & Instruments industry
Industry Median: 3.465 vs FRA:NG2: -4.37

Neogen's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Neogen's Operating Income for the three months ended in Feb. 2026 was €-2.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was €-33.0 Mil.


Neogen  (FRA:NG2) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Neogen Operating Margin % Related Terms


Neogen Operating Margin % Historical Data

* Premium members only.

The historical data trend for Neogen's Operating 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.

Neogen Operating Margin % Chart

Neogen Annual Data
Trend May16 May17 May18 May19 May20 May21 May22 May23 May24 May25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.83 11.12 4.56 6.35 -0.19

Neogen Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
Operating Margin % Get a 7-Day Free Trial 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 2.44 -5.89 -7.69 -2.39 -1.56

FRA:NG2 vs NVCR, ESTA, AXGN: Operating Margin % Comparison

For the Medical Devices subindustry, Neogen's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Neogen's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Neogen's Operating Margin % falls into.


FRA:NG2
68GF Score
Neogen Corp FRA:NG2
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Neogen Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Neogen's Operating Margin % for the fiscal year that ended in May. 2025 is calculated as

Operating Margin %=Operating Income (A: May. 2025 ) / Revenue (A: May. 2025 )
=-1.487 / 793.564
=-0.19 %

Neogen's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=-2.792 / 178.675
=-1.56 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -1.56% mean?
Neogen (FRA:NG2) has a Operating Margin % of -1.56% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Neogen and its competitors. According to the industry distribution chart, Neogen ranks #497 out of 816 companies in the Medical Devices & Instruments industry, placing it in the top 60.9%.
Is Neogen's Operating Margin % too high?
Neogen's current Operating Margin % is -1.56%. Based on the distribution chart, Neogen ranks #497 out of 816 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 Operating Margin % compare to NVCR and ESTA?
According to the Medical Devices & Instruments industry distribution chart, Neogen ranks #497 out of 816 companies for Operating Margin %. This places Neogen in the lower half of its industry. The industry median Operating Margin % is 3.47. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Neogen and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neogen's current Operating Margin % is -1.56%. 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 €10.66, compared to a current price of €7.65 — trading 28.2% below its estimated fair value. The current Operating Margin % is -1.56%. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Neogen (FRA:NG2), the current Operating Margin % is -1.56% 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 €7.65 is trading 28.2% below its estimated GF Value™ of €10.66. GuruFocus considers Neogen to be Modestly Undervalued.

Key valuation signals for FRA:NG2:

  • Operating Margin %: -1.56%
  • GF Value™: €10.66 vs. price of €7.65 (28.2% below fair value)
  • GF Score™: 68/100 with 3 warning signs

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 Business Description

Other Exchanges NEOG:USANG2:Germany
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, 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

Get the complete analysis for FRA:NG2

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€7.65
Price
€10.66
GF Value