NasdaqGM:NERV

Stock Analysis Report

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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.


Snowflake Analysis

Excellent balance sheet with limited growth.

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

-3.3%

NERV

-2.8%

US Biotechs

-0.04%

US Market


1 Year Return

-47.9%

NERV

30.6%

US Biotechs

17.1%

US Market

Return vs Industry: NERV underperformed the US Biotechs industry which returned 31% over the past year.

Return vs Market: NERV underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

NERVIndustryMarket
7 Day-3.3%-2.8%-0.04%
30 Day9.0%-4.1%5.1%
90 Day-72.1%4.6%19.5%
1 Year-47.9%-47.9%32.7%30.6%19.6%17.1%
3 Year-45.2%-45.2%31.0%24.8%42.5%33.3%
5 Year-38.2%-38.2%4.5%-2.9%75.1%56.2%

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

Valuation

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

2.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: NERV is unprofitable, so we can't compare its PE Ratio to the US 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 good value based on its PB Ratio (2.5x) compared to the US Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Minerva Neurosciences forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

48.8%

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: NERV's revenue (37.4% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: NERV's revenue (37.4% 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 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?

-13.7%

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 13.7% 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 (-8.3%).


Return on Equity

High ROE: NERV has a negative Return on Equity (-46.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Minerva Neurosciences's financial position?


Financial Position Analysis

Short Term Liabilities: NERV's short term assets ($35.9M) exceed its short term liabilities ($7.4M).

Long Term Liabilities: NERV's short term assets ($35.9M) exceed its long term liabilities ($1.8M).


Debt to Equity History and Analysis

Debt Level: NERV is debt free.

Reducing Debt: NERV has no debt compared to 5 years ago when its debt to equity ratio was 14.3%.


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: NERV has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NERV has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of 7.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NERV'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 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

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

5.8yrs

Average management tenure


CEO

Rémy Luthringer (59 yo)

5.75yrs

Tenure

US$1,164,934

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 ($USD1.16M) is above average for companies of similar size in the US market ($USD589.17K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rémy Luthringer
Executive Chairman & CEO5.75yrsUS$1.16m2.37%
$ 3.4m
Geoffrey Race
Executive VP6.25yrsUS$850.42k0.50%
$ 719.7k
Joseph Reilly
Senior VP & COO6.08yrsUS$1.49m0.064%
$ 92.1k
Frederick Ahlholm
Senior VP & Chief Accounting Officer6.08yrsUS$845.36k0.017%
$ 24.2k
William Boni
Vice President of Investor Relations & Corporate Communications5yrsno datano data
Devin Smith
Senior VP2.08yrsUS$2.24mno data
Michael Davidson
Chief Medical Officer3.67yrsUS$2.84mno data
Jay Saoud
Senior VP and Head of Research & Developmentno datano datano data

5.8yrs

Average Tenure

59yo

Average Age

Experienced Management: NERV's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rémy Luthringer
Executive Chairman & CEO5.75yrsUS$1.16m2.37%
$ 3.4m
William Doyle
Lead Independent Director2.5yrsUS$189.80k0.063%
$ 91.7k
Jeryl Hilleman
Independent Director2.08yrsUS$112.45k0.0024%
$ 3.5k
G. van Heek
Independent Director6.08yrsUS$112.45k0.032%
$ 46.8k
Hans Hasler
Independent Director2.67yrsUS$111.20k0.024%
$ 35.1k
David Kupfer
Independent Director4.75yrsUS$109.20k0.60%
$ 867.4k
Fouzia Laghrissi-Thode
Independent Director5.25yrsUS$107.20kno data

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: NERV's board of directors are not considered experienced ( 2.7 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 5.6%.


Top Shareholders

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$144.629m
  • Shares outstanding: 41.20m
  • 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 di ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:34
End of Day Share Price2020/08/11 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.