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.


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

-7.0%

MSB

3.3%

AU Biotechs

0.7%

AU Market


1 Year Return

-14.6%

MSB

33.3%

AU Biotechs

11.0%

AU Market

Return vs Industry: MSB underperformed the Australian Biotechs industry which returned 33.3% over the past year.

Return vs Market: MSB underperformed the Australian Market which returned 11% over the past year.


Shareholder returns

MSBIndustryMarket
7 Day-7.0%3.3%0.7%
30 Day-19.2%7.9%-0.2%
90 Day21.0%11.8%-0.1%
1 Year-14.6%-14.6%34.8%33.3%17.4%11.0%
3 Year61.0%59.4%143.1%134.3%36.3%18.0%
5 Year-52.7%-53.2%233.0%211.5%51.4%17.3%

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

1.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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 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

Low 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 (1.2x) compared to the AU Biotechs industry average (3.2x).


Next Steps

Future Growth

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

54.4%

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 year, which is considered above average market growth.

High Growth Earnings: MSB's loss is forecast to worsen by 0% next year.

Revenue vs Market: MSB's revenue (47.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MSB's revenue (47.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MSB is forecast to be unprofitable in 3 years.


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

Earnings Trend: MSB is unprofitable, but has reduced losses over the past 5 years at a rate of 6.5% 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 (16.7%).


Return on Equity

High ROE: MSB has a negative Return on Equity (-18.67%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MSB is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MSB is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Mesoblast's financial position?


Financial Position Analysis

Short Term Liabilities: MSB's short term assets ($62.5M) exceeds its short term liabilities ($44.3M)

Long Term Liabilities: MSB's short term assets (62.5M) do not cover its long term liabilities (126.7M)


Debt to Equity History and Analysis

Debt Level: MSB's debt to equity ratio (16.9%) 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

Inventory Level: MSB has a low level of unsold assets or inventory.

Debt Coverage by Assets: MSB's 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.

Stable Cash Runway: MSB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MSB has less than a year of cash runway if free cash flow continues to grow at historical rates of 14.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

8.8yrs

Average management tenure


CEO

Silviu Itescu (62yo)

8.8yrs

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

Compensation vs. Market: Silviu's total compensation ($USD1.30M) is about average for companies of similar size in the Australian market ($USD968.93K).

Compensation vs Earnings: Silviu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.8yrs

Average Tenure

60yo

Average Age

Experienced Management: MSB's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MSB's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$9,999,99607 Oct 19
M&G Investment Management Limited
EntityCompany
Shares5,000,000
Max PriceUS$2.00
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: 8.8yrs
    • Compensation: US$1.93m
  • Julie Meldrum

    Global Head of Corporate Communications

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

    • Tenure: 8.8yrs
  • Michael Schuster (42yo)

    Head of Pharma Partnering

    • Tenure: 0yrs
  • Roger Brown

    Head of Spinal Orthopedic Disorders

    • Tenure: 4yrs
  • Paul Simmons (60yo)

    Head of Research & New Product Development

    • Tenure: 8.8yrs
  • John McMannis (63yo)

    Head of Manufacturing

    • Tenure: 8.8yrs
  • Peter Howard (51yo)

    General Counsel & Corporate Executive

    • Tenure: 8.3yrs
  • Josh Muntner (50yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: US$892.41k

Board Members

  • Eric Rose (68yo)

    Non Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$150.00k
  • Joe Swedish (67yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: US$324.12k
  • Bill Burns (72yo)

    Non-Executive Vice Chairman

    • Tenure: 3.8yrs
    • Compensation: US$201.26k
  • Donal O’Dwyer (66yo)

    Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: US$180.69k
  • Silviu Itescu (62yo)

    Founder

    • Tenure: 8.8yrs
    • Compensation: US$1.93m
  • Michael Spooner (62yo)

    Non-Executive Director

    • Tenure: 15.1yrs
    • 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$951.725m
  • Shares outstanding: 533.18m
  • 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 Analysis2019/10/16 10:30
End of Day Share Price2019/10/16 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.