DB:2GH

Stock Analysis Report

Executive Summary

Merus N.V., a clinical-stage immuno-oncology company, engages in developing bispecific antibody therapeutics.


Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2GH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.4%

2GH

0.4%

DE Biotechs

-0.9%

DE Market


1 Year Return

80.7%

2GH

10.0%

DE Biotechs

12.8%

DE Market

Return vs Industry: 2GH exceeded the German Biotechs industry which returned 10% over the past year.

Return vs Market: 2GH exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

2GHIndustryMarket
7 Day9.4%0.4%-0.9%
30 Day16.7%-3.2%-0.4%
90 Day25.0%4.6%2.3%
1 Year80.7%80.7%10.3%10.0%16.3%12.8%
3 Yearn/a49.4%47.8%15.8%5.7%
5 Yearn/a13.9%11.5%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Merus undervalued compared to its fair value and its price relative to the market?

5.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2GH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2GH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2GH is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 2GH is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2GH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2GH is overvalued based on its PB Ratio (5.8x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Merus forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2GH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2GH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2GH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2GH's revenue (44.1% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: 2GH's revenue (44.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2GH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Merus performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2GH is currently unprofitable.

Growing Profit Margin: 2GH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2GH is unprofitable, and losses have increased over the past 5 years at a rate of -10.1% per year.

Accelerating Growth: Unable to compare 2GH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2GH is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 2GH has a negative Return on Equity (-38.47%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Merus's financial position?


Financial Position Analysis

Short Term Liabilities: 2GH's short term assets (€166.7M) exceed its short term liabilities (€29.7M).

Long Term Liabilities: 2GH's short term assets (€166.7M) exceed its long term liabilities (€89.8M).


Debt to Equity History and Analysis

Debt Level: 2GH is debt free.

Reducing Debt: 2GH currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: 2GH has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 2GH's debt is covered by short term assets.


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: 2GH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 2GH has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -25.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2GH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2GH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2GH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2GH'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 2GH's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Bill Lundberg (56yo)

0.2yrs

Tenure

Dr. Sven Ante Lundberg, also known as Bill, MD serves as Chief Executive Officer, President and Principal Financial Officer of Merus N.V. since December 31, 2019. He served as Non-Executive Director at Mer ...


Leadership Team

NamePositionTenureCompensationOwnership
John de Kruif
CTO & Senior VP7.1yrs€531.79k0.040% 203.7k
Mark Throsby
Chief Scientific Officer & Executive VP7.1yrs€873.29k0.046% 232.2k
Peter Silverman
Executive VP2yrs€552.89k0.11% 549.2k
Ton Logtenberg
Senior Advisor0.2yrs€1.85m1.01% 5.1m
Alexander Berthold Bakker
CDO & Senior VP0yrs€565.32k0.014% 69.8k
Hui Liu
Chief Business Officer4.2yrs€814.85k0.18% 900.9k
L. Sirulnik
Chief Medical Officer & Executive VP3.3yrs€909.67k0.49% 2.5m
Sven Lundberg
CEO, President & Principal Financial Officer0.2yrsno data0.13% 655.5k
Hennie Hoogenboom
Co-Founder and Scientific Advisor0yrsno datano data
Jillian Connell
Vice President of Investor Relations & Corporate Communications1.4yrsno datano data

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: 2GH's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Elaine Jones
Board Observer10.1yrsno datano data
Gregory Perry
Non-Executive Director3.8yrs€104.81k0.084% 421.9k
Russell Greig
Chairman of the Board1.6yrs€160.89kno data
Anand Mehra
Non-Executive Director2.1yrs€99.32kno data
John de Koning
Non-Executive Director10.1yrs€100.22k0.084% 421.9k
Mark Iwicki
Non Executive Director4.7yrs€114.52k0.26% 1.3m
Antoni Ribas
Member of Scientific Advisory Board1.5yrsno datano data
Ton Schumacher
Member of Scientific Advisory Board1.5yrsno datano data
Len Kanavy
Non-Executive Director1.6yrs€85.16k0.028% 142.8k
Johannes Clevers
Member of Scientific Advisory Board1.5yrsno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 2GH's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 8.5%.


Top Shareholders

Company Information

Merus N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Merus N.V.
  • Ticker: 2GH
  • Exchange: DB
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$548.242m
  • Listing Market Cap: US$504.712m
  • Shares outstanding: 28.87m
  • Website: https://www.merus.nl

Number of Employees


Location

  • Merus N.V.
  • Yalelaan 62
  • Utrecht
  • Utrecht
  • 3584 CM
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRUSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2016
2GHDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2016

Biography

Merus N.V., a clinical-stage immuno-oncology company, engages in developing bispecific antibody therapeutics. Its bispecific antibody candidate pipeline includes MCLA-128, which is in a Phase II clinical trial for the treatment of patients with metastatic breast cancer; and Phase I/II clinical trial for the treatment of gastric and non-small cell lung cancers. The company is also developing MCLA-117 that is in Phase I clinical trial for the treatment of patients with acute myeloid leukemia; and MCLA-158, which is in a Phase I clinical trial for the treatment of solid tumors with an initial focus on colorectal cancer. In addition, its research and development stage bispecific antibody candidates include MCLA-129, which is being developed in collaboration with Betta Pharmaceuticals Co. Ltd; MCLA-145, which is being developed in collaboration with Incyte Corporation; and clinical programs to explore new potential combination therapies or indication. The company was founded in 2003 and is headquartered in Utrecht, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:55
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.