NeoGenomics: Avoiding the Risks in Q3 Earnings

NeoGenomics' stock price has gained 24.7% in the last six months, but the company's earnings per share has dropped 78.5% annually over the last five years. The company's previous growth initiatives have also lost money, with a negative 10.1% five-year average return on invested capital. Additionally, NeoGenomics has high debt levels, with a net-debt-to-EBITDA ratio of 6x, which could increase risk and lead to insolvency. As investors, we aim to avoid companies taking excessive advantage of debt and recommend caution until the company improves its balance sheet and increases its profitability.