NasdaqGM:MRUS

Stock Analysis Report

Executive Summary

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

Snowflake

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


Market Performance


7 Day Return

0.3%

MRUS

0.5%

US Biotechs

0.7%

US Market


1 Year Return

11.7%

MRUS

6.7%

US Biotechs

12.9%

US Market

Return vs Industry: MRUS exceeded the US Biotechs industry which returned 6.7% over the past year.

Return vs Market: MRUS underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

MRUSIndustryMarket
7 Day0.3%0.5%0.7%
30 Day-4.3%10.1%4.4%
90 Day-15.3%5.8%7.0%
1 Year11.7%11.7%7.6%6.7%15.4%12.9%
3 Year-10.2%-10.2%16.8%13.1%49.1%39.5%
5 Yearn/a6.0%1.0%62.7%44.7%

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

Valuation

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

4.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRUS is overvalued based on its PB Ratio (4.7x) compared to the US Biotechs industry average (2.8x).


Next Steps

Future Growth

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

-15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MRUS's revenue (23.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MRUS's revenue (23.2% 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 MRUS'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: Insufficient data to determine if MRUS has high quality earnings.

Growing Profit Margin: MRUS's current net profit margins (-90.6%) are higher than last year (-122.9%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: MRUS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: MRUS 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: MRUS's short term assets (€166.7M) exceeds its short term liabilities (€29.7M)

Long Term Liabilities: MRUS's short term assets (166.7M) exceeds its long term liabilities (89.8M)


Debt to Equity History and Analysis

Debt Level: MRUS is debt free.

Reducing Debt: MRUS 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: MRUS has a low level of unsold assets or inventory.

Debt Coverage by Assets: MRUS's debt is not covered by short term assets (assets are -116.4x 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: MRUS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MRUS has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -25.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MRUS'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 MRUS'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 Merus's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Ton Logtenberg (61yo)

16.4yrs

Tenure

€1,852,384

Compensation

Dr. Ton Logtenberg, Ph.D. serves as Principal Financial Officer of Merus N.V. since January 2019. Dr. Logtenberg serves as President, Chief Executive Officer and Director of Merus N.V. since June 2003. Dr. ...


CEO Compensation Analysis

Compensation vs Market: Ton's total compensation ($USD2.05M) is about average for companies of similar size in the US market ($USD1.73M).

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


Management Age and Tenure

5.4yrs

Average Tenure

52yo

Average Age

Experienced Management: MRUS's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Board: MRUS's board of directors are not considered experienced ( 2.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.5%.


Management Team

  • Ton Logtenberg (61yo)

    President

    • Tenure: 16.4yrs
    • Compensation: €1.85m
  • Ellen Broug

    Executive Director of IP & Secretary

    • Tenure: 9.5yrs
  • Hennie Hoogenboom

    Co-Founder and Scientific Advisor

    • Tenure: 0yrs
  • John de Kruif (55yo)

    CTO & Senior VP

    • Tenure: 6.8yrs
    • Compensation: €531.79k
  • Mark Throsby (52yo)

    Chief Scientific Officer & Executive VP

    • Tenure: 6.8yrs
    • Compensation: €873.29k
  • Lex Bakker (52yo)

    CDO & Senior VP

    • Tenure: 0yrs
    • Compensation: €565.32k
  • Hui Liu (52yo)

    Chief Business Officer

    • Tenure: 3.9yrs
    • Compensation: €814.85k
  • L. Sirulnik (52yo)

    Chief Medical Officer & Executive VP

    • Tenure: 3.1yrs
    • Compensation: €909.67k
  • Jillian Connell

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 1.2yrs
  • Peter Silverman (41yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: €552.89k

Board Members

  • Elaine Jones (64yo)

    Board Observer

    • Tenure: 9.8yrs
  • Greg Perry (59yo)

    Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: €104.81k
  • Ton Logtenberg (61yo)

    President

    • Tenure: 16.4yrs
    • Compensation: €1.85m
  • Russell Greig (67yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: €160.89k
  • Anand Mehra (43yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: €99.32k
  • John de Koning (50yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: €100.22k
  • Mark Iwicki (53yo)

    Non Executive Director

    • Tenure: 4.4yrs
    • Compensation: €114.52k
  • Toni Ribas

    Member of Scientific Advisory Board

    • Tenure: 1.3yrs
  • Len Kanavy (57yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: €85.16k
  • Hans Clevers (62yo)

    Member of Scientific Advisory Board

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: Merus N.V.
  • Ticker: MRUS
  • Exchange: NasdaqGM
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$453.549m
  • 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 t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:19
End of Day Share Price2019/11/15 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.