ASX:MSB

Stock Analysis Report

Executive Summary

Mesoblast Limited, a biopharmaceutical company, develops and commercializes allogeneic cellular medicines.

Snowflake

Fundamentals

High growth potential with imperfect balance sheet.

Risks

  • Mesoblast has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Mesoblast's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

ASX:MSB

1.8%

AU Biotechs

0.7%

AU Market


1 Year Return

12.9%

ASX:MSB

17.5%

AU Biotechs

6.2%

AU Market

MSB underperformed the Biotechs industry which returned 17.5% over the past year.

MSB outperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

MSBIndustryMarket
7 Day1.8%1.8%0.7%
30 Day39.1%3.3%3.8%
90 Day46.7%7.8%0.4%
1 Year12.9%12.9%18.9%17.5%12.4%6.2%
3 Year82.1%80.3%135.2%126.7%40.9%21.9%
5 Year-54.5%-54.9%213.1%192.9%49.8%16.3%

Price Volatility Vs. Market

How volatile is Mesoblast's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mesoblast undervalued based on future cash flows and its price relative to the stock market?

1.42x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Mesoblast to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Mesoblast to establish if it is available at substantial discount.


Price Based on Earnings

Mesoblast is loss making, we can't compare its value to the Global Biotechs industry average.

Mesoblast is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Mesoblast, we can't assess if its growth is good value.


Price Based on Value of Assets

Mesoblast is good value based on assets compared to the AU Biotechs industry average.


Next Steps

Future Growth

How is Mesoblast expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

54.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mesoblast's revenue is expected to grow significantly at over 20% yearly.

Mesoblast's earnings are expected to grow significantly at over 20% yearly.

Mesoblast's revenue growth is expected to exceed the Australia market average.

Mesoblast's earnings growth is expected to exceed the Australia market average.

Mesoblast's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Mesoblast will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Mesoblast performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mesoblast does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Mesoblast's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Mesoblast's 1-year growth to the Global Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Mesoblast has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Mesoblast has efficiently used its assets last year compared to the Global Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Mesoblast improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Mesoblast's financial position?


Financial Position Analysis

Mesoblast is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mesoblast's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Mesoblast's level of debt (16.9%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Mesoblast's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Mesoblast has less than a year of cash runway based on current free cash flow.

Mesoblast has less than a year of cash runway if free cash flow continues to reduce at historical rates of -14.5% each year.


Next Steps

Dividend

What is Mesoblast's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Mesoblast's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mesoblast's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mesoblast has not reported any payouts.

Unable to verify if Mesoblast's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mesoblast has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Mesoblast's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average management tenure


CEO

Silviu Itescu (62yo)

8.7yrs

Tenure

US$1,927,278

Compensation

Prof. Silviu Itescu, MBBS (Hons), FRACP, FACP, FACRA, FTSE has been the Chief Executive Officer and Managing Director of Mesoblast Limited since 2011. Prof. Itescu is the Chief Executive Officer at Mesobla ...


CEO Compensation Analysis

Silviu's remuneration is higher than average for companies of similar size in Australia.

Silviu's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.7yrs

Average Tenure

60yo

Average Age

The average tenure for the Mesoblast management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.4yrs

Average Tenure

66.5yo

Average Age

The tenure for the Mesoblast board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$5,630,55111 Jul 19
M&G Investment Management Limited
EntityCompany
Shares3,681,270
Max PriceUS$1.53
SellUS$10,343,66117 Mar 19
Capital Research and Management Company
EntityCompany
Shares8,714,117
Max PriceUS$1.19
SellUS$3,306,47610 Feb 19
Capital Research and Management Company
EntityCompany
Shares2,721,380
Max PriceUS$1.22

Ownership Breakdown


Management Team

  • Jon Symonds (60yo)

    Head of Corporate Finance & Strategy

    • Tenure: 0yrs
  • Silviu Itescu (62yo)

    Founder

    • Tenure: 8.7yrs
    • Compensation: US$1.93m
  • Julie Meldrum

    Global Head of Corporate Communications

    • Tenure: 0yrs
  • Donna Skerrett (62yo)

    • Tenure: 8.7yrs
  • Michael Schuster (42yo)

    Head of Pharma Partnering

    • Tenure: 0yrs
  • Roger Brown

    Head of Spinal Orthopedic Disorders

    • Tenure: 3.9yrs
  • Paul Simmons (60yo)

    Head of Research & New Product Development

    • Tenure: 8.7yrs
  • John McMannis (63yo)

    Head of Manufacturing

    • Tenure: 8.7yrs
  • Peter Howard (51yo)

    General Counsel & Corporate Executive

    • Tenure: 8.2yrs
  • Josh Muntner (50yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: US$892.41k

Board Members

  • Eric Rose (68yo)

    Non Executive Director

    • Tenure: 6.4yrs
    • Compensation: US$150.00k
  • Joe Swedish (67yo)

    Non-Executive Chairman

    • Tenure: 0.4yrs
    • Compensation: US$324.12k
  • Bill Burns (72yo)

    Non-Executive Vice Chairman

    • Tenure: 3.7yrs
    • Compensation: US$201.26k
  • Donal O’Dwyer (66yo)

    Non-Executive Director

    • Tenure: 15yrs
    • Compensation: US$180.69k
  • Silviu Itescu (62yo)

    Founder

    • Tenure: 8.7yrs
    • Compensation: US$1.93m
  • Michael Spooner (62yo)

    Non-Executive Director

    • Tenure: 15yrs
    • Compensation: US$180.69k
  • Henry Krum

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Joseph Lane

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Bob Graham

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Richard Gilbert

    Member of Scientific Advisory Board

    • Tenure: 0yrs

Company Information

Mesoblast Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mesoblast Limited
  • Ticker: MSB
  • Exchange: ASX
  • Founded: 2004
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$1.055b
  • Shares outstanding: 495.16m
  • Website: https://www.mesoblast.com

Number of Employees


Location

  • Mesoblast Limited
  • 55 Collins Street
  • Level 38
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LWBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
MSBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2004
MEOB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
MSBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2004
MESONasdaqGS (Nasdaq Global Select)SPON ADR EACH REP 5 SHSUSUSDDec 2005
LWBADB (Deutsche Boerse AG)SPON ADR EACH REP 5 SHSDEEURDec 2005

Biography

Mesoblast Limited, a biopharmaceutical company, develops and commercializes allogeneic cellular medicines. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 10:31
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.