ASX:MSB

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.


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

Stable Share Price: MSB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

MSB

-3.3%

AU Biotechs

-1.6%

AU Market


1 Year Return

137.4%

MSB

22.2%

AU Biotechs

-10.9%

AU Market

Return vs Industry: MSB exceeded the Australian Biotechs industry which returned 24% over the past year.

Return vs Market: MSB exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

MSBIndustryMarket
7 Day-0.6%-3.3%-1.6%
30 Day-4.3%0.3%-3.7%
90 Day49.0%-0.2%-1.4%
1 Year137.4%137.4%23.3%22.2%-7.7%-10.9%
3 Year238.7%238.7%123.1%115.7%16.2%1.3%
5 Year58.9%57.3%224.6%205.5%37.8%9.6%

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 compared to its fair value and its price relative to the market?

3.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MSB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MSB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MSB is unprofitable, so we can't compare its PE Ratio to the XX Biotechs industry average.

PE vs Market: MSB is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MSB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MSB is good value based on its PB Ratio (3.8x) compared to the AU Biotechs industry average (6.2x).


Next Steps

Future Growth

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

56.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: MSB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MSB's is expected to become profitable in the next 3 years.

Revenue vs Market: MSB's revenue (42.2% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: MSB's revenue (42.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSB's Return on Equity is forecast to be low in 3 years time (2.8%).


Next Steps

Past Performance

How has Mesoblast performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSB is currently unprofitable.

Growing Profit Margin: MSB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MSB is unprofitable, and losses have increased over the past 5 years at a rate of 5.9% per year.

Accelerating Growth: Unable to compare MSB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MSB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (7.8%).


Return on Equity

High ROE: MSB has a negative Return on Equity (-14.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mesoblast's financial position?


Financial Position Analysis

Short Term Liabilities: MSB's short term assets ($136.5M) exceed its short term liabilities ($90.1M).

Long Term Liabilities: MSB's short term assets ($136.5M) exceed its long term liabilities ($94.1M).


Debt to Equity History and Analysis

Debt Level: MSB's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MSB's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: MSB has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MSB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MSB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MSB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MSB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MSB's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Silviu Itescu (63 yo)

9.67yrs

Tenure

US$2,651,592

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

Compensation vs Market: Silviu's total compensation ($USD1.30M) is about average for companies of similar size in the Australian market ($USD1.41M).

Compensation vs Earnings: Silviu's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Silviu Itescu
Founder9.67yrsUS$2.65m11.74%
$ 355.4m
Josh Muntner
Chief Financial Officer2.33yrsUS$1.27mno data
Peter Howard
General Counsel & Corporate Executive9.17yrsno datano data
Michael Schuster
Head of Pharma Partneringno datano datano data
Eric Strati
Senior Vice President of Commercialno datano datano data
Fred Grossman
Chief Medical Officer1.08yrsno datano data
Dagmar Rosa-Bjorkeson
Chief Operating Officer0.17yrno datano data
Jonathan Symonds
Head of Corporate Finance & Strategyno datano datano data
Julie Meldrum
Global Head of Corporate Communicationsno datano datano data
Roger Brown
Head of Spinal Orthopedic Disorders4.92yrsno datano data
Paul Simmons
Head of Research & New Product Development9.67yrsno datano data
John McMannis
Head of Manufacturing9.67yrsno datano data

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MSB's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Silviu Itescu
Founder9.67yrsUS$2.65m11.74%
$ 355.4m
Eric Rose
Independent Non Executive Director7.42yrsUS$190.75kno data
Joseph Swedish
Independent Non-Executive Chairman1.42yrsUS$546.28kno data
William A. Burns
Independent Non-Executive Vice Chairman4.67yrsUS$247.50k0.011%
$ 326.8k
Donal O'Dwyer
Independent Non-Executive Director16yrsUS$196.53k0.21%
$ 6.4m
Michael Spooner
Independent Non-Executive Director16yrsUS$196.53k0.18%
$ 5.5m
Henry Krum
Member of Scientific Advisory Boardno datano datano data
Joseph Lane
Member of Scientific Advisory Boardno datano datano data
Robert Graham
Member of Scientific Advisory Boardno datano datano data
Richard Gilbert
Member of Scientific Advisory Boardno datano datano data
Stephen Graves
Member of Scientific Advisory Boardno datano datano data
Shawn Tomasello
Independent Non-Executive Director2.17yrsUS$171.74kno data

6.0yrs

Average Tenure

67yo

Average Age

Experienced Board: MSB's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.8%.


Top Shareholders

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$3.026b
  • Shares outstanding: 583.09m
  • 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 Analysis2020/09/30 10:46
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.