DB:MAH

Stock Analysis Report

Executive Summary

Mereo BioPharma Group plc, a biopharmaceutical company, acquires, develops, and commercializes therapeutics for the treatment of rare and specialty diseases.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Share Price & News

How has Mereo BioPharma Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

MAH

1.0%

DE Biotechs

1.4%

DE Market


1 Year Return

-68.5%

MAH

1.3%

DE Biotechs

3.7%

DE Market

Return vs Industry: MAH underperformed the German Biotechs industry which returned 1.3% over the past year.

Return vs Market: MAH underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

MAHIndustryMarket
7 Day4.3%1.0%1.4%
30 Day0%-5.5%1.3%
90 Day35.0%-4.4%3.4%
1 Year-68.5%-68.5%1.5%1.3%7.0%3.7%
3 Year-79.3%-79.3%67.3%65.6%18.5%8.3%
5 Yearn/a12.9%10.4%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Mereo BioPharma Group undervalued compared to its fair value and its price relative to the market?

0.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MAH is good value based on its PB Ratio (0.9x) compared to the DE Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Mereo BioPharma Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if MAH's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if MAH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Mereo BioPharma Group performed over the past 5 years?

-8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MAH is unprofitable, and losses have increased over the past 5 years at a rate of -8.8% per year.

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

Earnings vs Industry: MAH is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-2.3%).


Return on Equity

High ROE: MAH has a negative Return on Equity (-52.96%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Mereo BioPharma Group's financial position?


Financial Position Analysis

Short Term Liabilities: MAH's short term assets (£48.9M) exceeds its short term liabilities (£21.1M)

Long Term Liabilities: MAH's short term assets (48.9M) exceeds its long term liabilities (27.0M)


Debt to Equity History and Analysis

Debt Level: MAH's debt to equity ratio (33.4%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: MAH's debt is covered by short term assets (assets are 2.477380x 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: MAH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MAH has sufficient cash runway for 2.174482 years if free cash flow continues to reduce at historical rates of -8.1% each year.


Next Steps

Dividend

What is Mereo BioPharma Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Denise Scots-Knight (60yo)

4.3yrs

Tenure

UK£747,840

Compensation

Dr. Denise Scots-Knight, Ph.D. serves as President of OncoMed Pharmaceuticals, Inc. She serves as Director at Elanco Animal Health Incorporated since March 13, 2019. She has Co-founded Mereo BioPharma Grou ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Denise's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

4.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: MAH's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: MAH's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: MAH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£17,58214 Oct 19
Peter Fellner
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares25,500
Max PriceUK£0.70
BuyUK£5,58604 Oct 19
Alastair MacKinnon
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Medical Officer
Shares8,391
Max PriceUK£0.67
BuyUK£2,24526 Sep 19
Alastair MacKinnon
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Medical Officer
Shares3,313
Max PriceUK£0.68
BuyUK£1,11724 Sep 19
Alastair MacKinnon
EntityIndividual
Role
Top Key Executive
Co-Founder & Chief Medical Officer
Shares1,619
Max PriceUK£0.69
BuyUK£8,99520 Sep 19
Denise Scots-Knight
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares13,500
Max PriceUK£0.67
BuyUK£7,08416 Aug 19
Denise Scots-Knight
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares12,000
Max PriceUK£0.59
BuyUK£3,74416 Aug 19
Charles Sermon
EntityIndividual
Role
Top Key Executive
Co-Founder
Shares6,355
Max PriceUK£0.59
BuyUK£5,00119 Jul 19
Denise Scots-Knight
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares10,000
Max PriceUK£0.50
BuyUK£11,01701 May 19
Alexandra Hughes-Wilson
EntityIndividual
Role
Senior Key Executive
Head of Patient Access & Commercial Planning
Shares8,000
Max PriceUK£1.38
BuyUK£44,43830 Apr 19
Peter Fellner
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares30,000
Max PriceUK£1.48
BuyUK£6,16127 Dec 18
Denise Scots-Knight
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares3,000
Max PriceUK£2.05
BuyUK£6,31124 Dec 18
Denise Scots-Knight
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares3,000
Max PriceUK£2.10

Ownership Breakdown


Management Team

  • Denise Scots-Knight (60yo)

    Co-Founder

    • Tenure: 4.3yrs
    • Compensation: UK£747.84k
  • Richard Crispin Jones (53yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£501.48k
  • Charles Sermon (50yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: UK£543.46k
  • Alastair MacKinnon (49yo)

    Co-Founder & Chief Medical Officer

    • Tenure: 4.8yrs
    • Compensation: UK£537.58k
  • Wills Hughes-Wilson (48yo)

    Head of Patient Access & Commercial Planning

    • Tenure: 1.7yrs
    • Compensation: UK£100.13k
  • John Richard (62yo)

    Co-Founder & Head of Corporate Development

    • Tenure: 4.8yrs
    • Compensation: UK£507.91k
  • Fiona Bor

    Head of Intellectual Property

    • Tenure: 0yrs
  • Tony Hall

    Therapy Area Head of Orphan Diseases

    • Tenure: 0yrs
  • Ian Hodgson

    Head of Clinical Operations

    • Tenure: 0yrs
  • Jackie Parkin

    Therapy Area Head of Respiratory Endocrinology

    • Tenure: 0yrs

Board Members

  • Mike Wyzga (64yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Peter Fellner (76yo)

    Independent Non-Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: UK£100.00k
  • Deepa Pakianathan (54yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Denise Scots-Knight (60yo)

    Co-Founder

    • Tenure: 4.3yrs
    • Compensation: UK£747.84k
  • Peter James Bains (62yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£44.00k
  • Kunal Kashyap (54yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£40.00k
  • Richard Crispin Jones (53yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£501.48k
  • Anders Ekblom (65yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£48.00k
  • Paul Blackburn (65yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: UK£48.00k

Company Information

Mereo BioPharma Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mereo BioPharma Group plc
  • Ticker: MAH
  • Exchange: DB
  • Founded: 2015
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£54.857m
  • Listing Market Cap: UK£63.390m
  • Shares outstanding: 97.96m
  • Website: https://www.mereobiopharma.com

Number of Employees


Location

  • Mereo BioPharma Group plc
  • 1 Cavendish Place
  • Fourth Floor
  • London
  • Greater London
  • W1G 0QF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2016
MAHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2016
MREONasdaqGM (Nasdaq Global Market)ADSUSUSDApr 2019
MAH0BST (Boerse-Stuttgart)ADSDEEURApr 2019
MAH0DB (Deutsche Boerse AG)ADSDEEURApr 2019

Biography

Mereo BioPharma Group plc, a biopharmaceutical company, acquires, develops, and commercializes therapeutics for the treatment of rare and specialty diseases. Its product candidates include BPS-804, a novel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:28
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.