DB:LWB

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential and overvalued.


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: LWB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.5%

LWB

-4.3%

DE Biotechs

-4.7%

DE Market


1 Year Return

99.2%

LWB

5.5%

DE Biotechs

8.3%

DE Market

Return vs Industry: LWB exceeded the German Biotechs industry which returned 5.5% over the past year.

Return vs Market: LWB exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

LWBIndustryMarket
7 Day-5.5%-4.3%-4.7%
30 Day-17.2%-6.7%-4.0%
90 Day38.7%0.4%-1.4%
1 Year99.2%99.2%5.8%5.5%11.7%8.3%
3 Year32.7%31.4%40.9%39.4%11.4%1.6%
5 Year-42.9%-43.4%10.9%8.6%15.1%-0.7%

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

No news available

Valuation

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

1.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: LWB 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 LWB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LWB is good value based on its PB Ratio (1.8x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Mesoblast forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

74.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LWB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

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

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

Revenue vs Market: LWB's revenue (59.7% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: LWB's revenue (59.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Mesoblast performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LWB is currently unprofitable.

Growing Profit Margin: LWB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LWB is unprofitable, but has reduced losses over the past 5 years at a rate of 3.7% per year.

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

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


Return on Equity

High ROE: LWB has a negative Return on Equity (-15.95%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mesoblast's financial position?


Financial Position Analysis

Short Term Liabilities: LWB's short term assets ($60.6M) do not cover its short term liabilities ($70.1M).

Long Term Liabilities: LWB's short term assets ($60.6M) do not cover its long term liabilities ($108.5M).


Debt to Equity History and Analysis

Debt Level: LWB's debt to equity ratio (17.6%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: LWB's debt is not covered by short term assets (assets are 0.7x 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: LWB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LWB has less than a year of cash runway if free cash flow continues to grow at historical rates of 3.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate LWB'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 LWB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LWB'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 LWB'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?

8.8yrs

Average management tenure


CEO

Silviu Itescu (62yo)

9.1yrs

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 ($USD1.27M) is about average for companies of similar size in the German market ($USD1.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Silviu Itescu
Founder9.1yrsUS$1.93m12.92% $108.0m
Josh Muntner
Chief Financial Officer1.8yrsUS$892.41kno data
Peter Howard
General Counsel & Corporate Executive8.6yrsno datano data
Paul Simmons
Head of Research & New Product Development9.1yrsno datano data
Michael Schuster
Head of Pharma Partnering0yrsno datano data
John McMannis
Head of Manufacturing9.1yrsno datano data
Jonathan Symonds
Head of Corporate Finance & Strategy0yrsno datano data
Julie Meldrum
Global Head of Corporate Communications0yrsno datano data
Roger Brown
Head of Spinal Orthopedic Disorders4.3yrsno datano data
Geraldine Storton
Head of Regulatory Affairs & Quality Management0yrsno datano data

8.8yrs

Average Tenure

60yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Silviu Itescu
Founder9.1yrsUS$1.93m12.92% $108.0m
Joseph Swedish
Independent Non-Executive Chairman0.8yrsUS$324.12kno data
William A. Burns
Independent Non-Executive Vice Chairman4.1yrsUS$201.26k0.012% $98.7k
Donal O'Dwyer
Independent Non-Executive Director15.4yrsUS$180.69k0.22% $1.8m
Michael Spooner
Independent Non-Executive Director15.4yrsUS$180.69k0.20% $1.7m
Henry Krum
Member of Scientific Advisory Board0yrsno datano data
Joseph Lane
Member of Scientific Advisory Board0yrsno datano data
Robert Graham
Member of Scientific Advisory Board0yrsno datano data
Richard Gilbert
Member of Scientific Advisory Board0yrsno datano data
Stephen Graves
Member of Scientific Advisory Board0yrsno datano data

9.8yrs

Average Tenure

66yo

Average Age

Experienced Board: LWB's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LWB 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 5.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Mesoblast Limited
  • Ticker: LWB
  • Exchange: DB
  • Founded: 2004
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$1.377b
  • Listing Market Cap: AU$835.596m
  • Shares outstanding: 533.62m
  • 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, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage adult stem cells. The company’s products under the Phase III clinical trials include MSC-100-IV for steroid refractory acute graft versus host disease; MPC-150-IM for advanced heart failure; and MPC-06-ID for chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV that is in Phase II clinical trials for the treatment of biologic refractory rheumatoid arthritis, diabetic kidney diseases, and type 2 diabetic nephropathy. It operates in the United States, Australia, Singapore, the United Kingdom, and Switzerland. Mesoblast Limited has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. for the treatment of wound healing in patients with epidermolysis bullosa; and Grünenthal to develop and commercialize cell therapy for the treatment of chronic low back pain. The company was founded in 2004 and is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:43
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.