NasdaqGM:MRUS

Stock Analysis Report

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Executive Summary

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


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: MRUS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.08%

MRUS

-2.7%

US Biotechs

-0.4%

US Market


1 Year Return

-29.4%

MRUS

33.6%

US Biotechs

18.3%

US Market

Return vs Industry: MRUS underperformed the US Biotechs industry which returned 33.6% over the past year.

Return vs Market: MRUS underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

MRUSIndustryMarket
7 Day0.08%-2.7%-0.4%
30 Day8.4%2.7%6.6%
90 Day-4.0%-3.0%8.6%
1 Year-29.4%-29.4%35.9%33.6%21.0%18.3%
3 Year-19.0%-19.0%20.0%13.9%42.1%32.7%
5 Yearn/a14.5%6.2%85.6%64.7%

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?

3.78x

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 US 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 (3.8x) compared to the US Biotechs industry average (3.4x).


Next Steps

Future Growth

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

7.4%

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 (46% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: MRUS's revenue (46% 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

  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Merus performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRUS is currently unprofitable.

Growing Profit Margin: MRUS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRUS is unprofitable, and losses have increased over the past 5 years at a rate of 9.4% 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 (-7.1%).


Return on Equity

High ROE: MRUS has a negative Return on Equity (-68.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Merus's financial position?


Financial Position Analysis

Short Term Liabilities: MRUS's short term assets ($211.4M) exceed its short term liabilities ($38.3M).

Long Term Liabilities: MRUS's short term assets ($211.4M) exceed its long term liabilities ($85.1M).


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


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 2.3 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 MRUS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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

3.0yrs

Average management tenure


CEO

Bill Lundberg (57 yo)

0.83

Tenure

US$162,272

Compensation

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 and serves as its Director since June 2019 ...


Leadership Team

NamePositionTenureCompensationOwnership
Sven Lundberg
CEO, President0.83yrUS$162.27k0.13%
$ 489.7k
Ton Logtenberg
Senior Advisor0.83yrUS$5.36m0.96%
$ 3.6m
Hui Liu
Chief Business Officer4.83yrsUS$1.38m0.19%
$ 733.8k
Hennie Hoogenboom
Co-Founder and Scientific Advisorno datano datano data
Cornelis de Kruif
CTO & Senior VP7.75yrsUS$531.79k0.042%
$ 160.4k
Jillian Connell
VP of Investor Relations & Corporate Communicationsno datano datano data
Peter Silverman
Executive VP2.67yrsUS$552.89kno data
Alexander Berthold Bakker
Chief Development Officer & Senior VPno dataUS$565.32k0.017%
$ 63.4k
Andrew Joe
Chief Medical Officer0.25yrno datano data
Ellen Broug
Executive Director of IP & Secretary10.42yrsno datano data
Anne Noordzij
Secretary3.33yrsno datano data
Harry Shuman
VP & Controllerno datano datano data

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: MRUS's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sven Lundberg
CEO, President0.83yrUS$162.27k0.13%
$ 489.7k
Elaine Jones
Board Observer10.75yrsno datano data
Gregory Perry
Independent Vice Chairman2.17yrsUS$127.11k0%
$ 0
Anand Mehra
Independent Chairman0.33yrUS$121.13k0%
$ 0
Paolo Pucci
Non-Executive Director0.33yrno datano data
Mark Iwicki
Independent Non Executive Director5.33yrsUS$123.27k0%
$ 0
Antoni Ribas
Member of Scientific Advisory Board2.17yrsno datano data
Victor Sandor
Independent Non-Executive Director1.33yrsUS$195.00k0%
$ 0
Josep Tabernero
Member of Scientific Advisory Board2.17yrsno datano data
Ton Schumacher
Member of Scientific Advisory Board2.17yrsno datano data
Len Kanavy
Independent Non-Executive Director2.25yrsUS$115.59k0%
$ 0
Johannes Clevers
Member of Scientific Advisory Board2.17yrsno datano data

2.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MRUS's board of directors are not considered experienced ( 2.2 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 24.2%.


Top Shareholders

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$379.486m
  • Shares outstanding: 29.06m
  • 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 Analysis2020/10/25 01:02
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.