NasdaqGS:MRSN

Stock Analysis Report

Executive Summary

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.0%

MRSN

1.6%

US Biotechs

0.4%

US Market


1 Year Return

-79.4%

MRSN

-7.7%

US Biotechs

6.9%

US Market

Return vs Industry: MRSN underperformed the US Biotechs industry which returned -7.7% over the past year.

Return vs Market: MRSN underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

MRSNIndustryMarket
7 Day10.0%1.6%0.4%
30 Day-10.3%-2.4%-1.2%
90 Day-60.7%-1.5%-0.4%
1 Year-79.4%-79.4%-6.9%-7.7%9.3%6.9%
3 Yearn/a14.7%10.7%45.8%36.4%
5 Yearn/a-2.3%-7.0%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MRSN ($1.65) is trading below our estimate of fair value ($3.78)

Significantly Undervalued: MRSN is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRSN is good value based on its PB Ratio (0.7x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

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

-23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MRSN's revenue is expected to decline over the next 3 years (-7% per year).

High Growth Revenue: MRSN's revenue is forecast to decline over the next 3 years (-7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Mersana Therapeutics performed over the past 5 years?

-33.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MRSN is unprofitable, and losses have increased over the past 5 years at a rate of -33.2% per year.

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

Earnings vs Industry: MRSN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (78.4%).


Return on Equity

High ROE: MRSN has a negative Return on Equity (-31.95%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Mersana Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: MRSN's short term assets ($131.6M) exceeds its short term liabilities ($23.9M)

Long Term Liabilities: MRSN's short term assets (131.6M) exceeds its long term liabilities (7.0M)


Debt to Equity History and Analysis

Debt Level: MRSN's debt to equity ratio (4.4%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: MRSN's debt is covered by short term assets (assets are 27.391460x 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: MRSN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MRSN has sufficient cash runway for 1.719631 years if free cash flow continues to reduce at historical rates of -78.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Anna Protopapas (55yo)

4.6yrs

Tenure

US$2,606,900

Compensation

Ms. Anna Protopapas has been the Chief Executive Officer and President of Mersana Therapeutics, Inc. since March 2015. Ms. Protopapas has extensive strategic leadership experience and a demonstrated track  ...


CEO Compensation Analysis

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

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


Management Age and Tenure

0.9yrs

Average Tenure

55yo

Average Age

Experienced Management: MRSN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: MRSN's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


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$15,000,00006 Mar 19
New Enterprise Associates
EntityCompany
Shares3,750,000
Max PriceUS$4.00

Ownership Breakdown


Management Team

  • Anna Protopapas (55yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$2.61m
  • Radha Iyengar

    Vice President of Legal Operations

    • Tenure: 0yrs
  • Misha Papisov

    Co-Founder

    • Tenure: 0yrs
  • Tim Lowinger (55yo)

    Chief Science & Technology Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.05m
  • Eva Jack (51yo)

    Chief Business Officer & Company Secretary

    • Tenure: 5.9yrs
  • Michael Kaufman (61yo)

    Senior Vice President of Chemistry

    • Tenure: 3.7yrs
  • Sarah Carmody

    Executive Director of Investor Relations & Corporate Communications

    • Tenure: 0.9yrs
  • Dirk Huebner (56yo)

    Chief Medical Officer

    • Tenure: 0.9yrs
  • Brian DeSchuytner (41yo)

    Senior Vice President of Finance & Product Strategy

    • Tenure: 0.3yrs
  • Ashish Mandelia (45yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 0.08yrs

Board Members

  • Dave Mott (54yo)

    Independent Chairman

    • Tenure: 7.3yrs
    • Compensation: US$160.44k
  • Larry Alleva (69yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$136.43k
  • Will Dere (65yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$261.55k
  • Kristen Hege (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$122.43k
  • Anna Protopapas (55yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$2.61m
  • Andrew A. Hack (45yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$126.41k
  • Misti Ushio (48yo)

    Board Observer

    • Tenure: 0yrs

Company Information

Mersana Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mersana Therapeutics, Inc.
  • Ticker: MRSN
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$78.886m
  • Shares outstanding: 47.81m
  • Website: https://www.mersana.com

Number of Employees


Location

  • Mersana Therapeutics, Inc.
  • 840 Memorial Drive
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRSNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2017
0M4DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2017

Biography

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company focusing on the development of antibody drug conjugate (ADC) for cancer patients with unmet need. The company develops Dolaflexin, a p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:34
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.