NasdaqGM:NERV

Stock Analysis Report

Minerva Neurosciences

Market Cap

US$326.3m

Last Updated

2020/01/19 00:35 UTC

Data Sources

Company Financials +

Executive Summary

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of a portfolio of product candidates for the treatment of central nervous system diseases.

Rewards

Trading at 95.6% below its fair value

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Minerva Neurosciences's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: NERV's share price has been volatile over the past 3 months.

Market Performance

7 Day Return

6.9%

NERV

0.9%

US Biotechs

2.0%

US Market

1 Year Return

18.2%

NERV

11.3%

US Biotechs

23.6%

US Market

Return vs Industry: NERV exceeded the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: NERV underperformed the US Market which returned 23.2% over the past year.

Shareholder returns

NERVIndustryMarket
7 Day6.9%0.9%2.0%
30 Day39.8%0.7%3.9%
90 Day101.0%20.6%12.0%
1 Year18.2%18.2%12.3%11.3%26.2%23.6%
3 Year-21.1%-21.1%28.9%24.6%53.2%43.3%
5 Year62.3%62.3%4.3%-0.6%75.7%56.3%

Price Volatility Vs. Market

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

Simply Wall St News

1 week ago | Simply Wall St

Should You Take Comfort From Insider Transactions At Minerva Neurosciences, Inc. (NASDAQ:NERV)?

1 month ago | Simply Wall St

We're Keeping An Eye On Minerva Neurosciences's (NASDAQ:NERV) Cash Burn Rate

2 months ago | Simply Wall St

Minerva Neurosciences, Inc. (NASDAQ:NERV): What Does Its Beta Value Mean For Your Portfolio?

Valuation

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NERV ($7.69) is trading below our estimate of fair value ($175.42)

Significantly Below Fair Value: NERV is trading below fair value by more than 20%.

Price To Earnings Ratio

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

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

Price to Book Ratio

PB vs Industry: NERV is overvalued based on its PB Ratio (5.4x) compared to the US Biotechs industry average (3.2x).

Next Steps

Future Growth

How is Minerva Neurosciences forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

55.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

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

High Growth Revenue: Insufficient data to determine if NERV's revenue 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 NERV's Return on Equity is forecast to be high in 3 years time

Next Steps

Past Performance

How has Minerva Neurosciences performed over the past 5 years?

-1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NERV is currently unprofitable.

Growing Profit Margin: NERV is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NERV is unprofitable, and losses have increased over the past 5 years at a rate of -1.8% per year.

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

Earnings vs Industry: NERV is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).

Return on Equity

High ROE: NERV has a negative Return on Equity (-99.89%), as it is currently unprofitable.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Minerva Neurosciences's financial position?

Financial Position Analysis

Short Term Liabilities: NERV's short term assets ($61.4M) exceed its short term liabilities ($9.9M).

Long Term Liabilities: NERV's short term assets ($61.4M) exceed its long term liabilities ($45.4M).

Debt to Equity History and Analysis

Debt Level: NERV is debt free.

Reducing Debt: NERV had no debt 5 years ago.

Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NERV's debt is covered by short term assets.

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: NERV has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NERV has less than a year of cash runway if free cash flow continues to reduce at historical rates of -33.1% each year

Next Steps

Dividend

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

Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

4.8yrs

Average management tenure

CEO

Rémy Luthringer (58yo)

5.2yrs

Tenure

US$3,910,245

Compensation

Dr. Rémy Luthringer serves as a Clinical Advisor to the Medicxi investment team and a Member of the Co-Founding team at Medicxi Ventures (UK) LLP. He has played an active role in several Index Ventures. He ...

CEO Compensation Analysis

Compensation vs Market: Rémy's total compensation ($USD3.91M) is above average for companies of similar size in the US market ($USD1.70M).

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

Management Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Management: NERV's management team is considered experienced (4.8 years average tenure).

Board Age and Tenure

2.1yrs

Average Tenure

61yo

Average Age

Experienced Board: NERV's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.

Insider Trading

Insider Buying: NERV insiders have only sold shares in the past 3 months.

Recent Insider Transactions

SellUS$23,09813 Dec 19
Richard Russell
EntityIndividual
Role
President
President
Shares3,113
Max PriceUS$7.42
BuyUS$19,25001 Jul 19
William Doyle
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,500
Max PriceUS$5.50
BuyUS$53,70027 Jun 19
G. van Heek
EntityIndividual
Shares10,000
Max PriceUS$5.37
BuyUS$5,25027 Jun 19
Jeryl Hilleman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$5.25
BuyUS$56,00027 Jun 19
Hans Hasler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$5.60
BuyUS$55,50027 Jun 19
David Kupfer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$5.55
SellUS$1,166,79426 Jun 19
Index Ventures
EntityCompany
Shares194,000
Max PriceUS$6.01
SellUS$488,91121 Jun 19
Index Ventures
EntityCompany
Shares110,818
Max PriceUS$4.44
SellUS$470,73019 Jun 19
Index Ventures
EntityCompany
Shares105,918
Max PriceUS$4.45
SellUS$250,20818 Jun 19
Index Ventures
EntityCompany
Shares56,243
Max PriceUS$4.45
SellUS$352,44217 Jun 19
Index Ventures
EntityCompany
Shares78,179
Max PriceUS$4.51
SellUS$281,34313 Jun 19
Index Ventures
EntityCompany
Shares60,051
Max PriceUS$4.78
SellUS$137,89621 May 19
Index Ventures
EntityCompany
Shares22,918
Max PriceUS$6.08
SellUS$898,16116 May 19
Index Ventures
EntityCompany
Shares134,828
Max PriceUS$7.05

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Management Team

  • Geoff Race (58yo)

    Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$1.53m

  • William Boni (67yo)

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 4.4yrs

  • Fred Ahlholm (53yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 5.5yrs
    • Compensation: US$845.36k

  • Rémy Luthringer (58yo)

    Executive Chairman & CEO

    • Tenure: 5.2yrs
    • Compensation: US$3.91m

  • Rick Russell (55yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$2.22m

  • Joe Reilly (44yo)

    Senior VP & COO

    • Tenure: 5.5yrs
    • Compensation: US$1.49m

  • Devin Smith (51yo)

    Senior VP

    • Tenure: 1.5yrs
    • Compensation: US$2.24m

  • Michael Davidson (69yo)

    Chief Medical Officer

    • Tenure: 3.1yrs
    • Compensation: US$2.84m

  • Jay Saoud (60yo)

    Senior VP and Head of Research & Development

    Board Members

    • Bill Doyle (57yo)

      Lead Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$272.53k

    • Jeri Hilleman (61yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$241.15k

    • Hans Hasler (63yo)

      Independent Director

      • Tenure: 2.1yrs
      • Compensation: US$153.13k

    • David Kupfer (78yo)

      Independent Director

      • Tenure: 4.2yrs
      • Compensation: US$149.63k

    • Rémy Luthringer (58yo)

      Executive Chairman & CEO

      • Tenure: 5.2yrs
      • Compensation: US$3.91m

    • Jan van Heek (70yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$156.88k

    • Fouzia Laghrissi-Thode (56yo)

      Independent Director

      • Tenure: 4.7yrs
      • Compensation: US$153.26k

    Company Information

    Minerva Neurosciences, Inc.'s company bio, employee growth, exchange listings and data sources

    Key Information

    • Name: Minerva Neurosciences, Inc.
    • Ticker: NERV
    • Exchange: NasdaqGM
    • Founded: 2007
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$326.253m
    • Shares outstanding: 39.03m
    • Website: https://www.minervaneurosciences.com

    Number of Employees

    Location

    • Minerva Neurosciences, Inc.
    • 1601 Trapelo Road
    • Suite 286
    • Waltham
    • Massachusetts
    • 2451
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    NERVNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2014
    4MNDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014

    Biography

    Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of a portfolio of product candidates for the treatment of central nervous system diseases. The company’s lead product candidate is roluperidone, which is in Phase III clinical trial, a compound for the treatment of patients with schizophrenia. It also offers MIN-117, a compound that has completed Phase IIb clinical trial for the treatment of patients suffering from major depressive disorder (MDD); and seltorexant, which is in Phase IIb clinical trial for treating insomnia and MDD. The company’ preclinical stage product is MIN-301, a soluble recombinant form of the neuregulin-1b1 protein for the treatment of Parkinson’s disease. Minerva Neurosciences, Inc. has a license agreement with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of the MIN-117 compound and roluperidone worlwide, excluding Asia; and co-development and license agreement with Janssen Pharmaceutica, NV for the development of seltorexant. The company was formerly known as Cyrenaic Pharmaceuticals, Inc. and changed its name to Minerva Neurosciences, Inc. in 2013. Minerva Neurosciences, Inc. was founded in 2007 and is based in Waltham, Massachusetts. 

    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 00:35
    End of Day Share Price2020/01/17 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.