Mereo BioPharma Group plc (NASDAQ: MREO)

Sector: Healthcare Industry: Biotechnology CIK: 0001719714
P/B 6.45
P/E -7.23
P/S 601.42
Market Cap 300.71 Mn
ROIC (Qtr) -87.39
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 397,000.00
Debt/Equity (Qtr) 0.01

About

Mereo BioPharma Group plc, also known by its stock symbol MREO, is a company that operates in the biopharmaceutical industry. The company's main business activities involve the development and commercialization of innovative therapeutics for rare diseases. Mereo was incorporated in 2

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 48.70M provide 122.66x coverage of short-term debt 397000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 52.96M provides 133.40x coverage of total debt 397000, indicating robust asset backing and low credit risk.
  • Tangible assets of 52.96M provide robust 11.17x coverage of other current liabilities 4.74M, indicating strong asset backing.
  • Cash reserves of 48.70M provide solid 49.29x coverage of other non-current liabilities 988000, indicating strong liquidity.
  • Strong cash position of 48.70M provides 10.27x coverage of other current liabilities 4.74M, indicating excellent liquidity.

Cons

  • Investment activities of (20000) provide weak support for R&D spending of 22.39M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (32.71M) shows concerning coverage of stock compensation expenses of 7.57M, with a -4.32 ratio indicating potential earnings quality issues.
  • Free cash flow of (32.73M) provides weak coverage of capital expenditures of 20000, with a -1636.45 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (42.92M) show weak coverage of depreciation charges of 831000, with a -51.65 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (32.71M) is outpaced by equity issuance of 248000 (-131.89 ratio), indicating concerning reliance on equity markets for funding operations.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.57 12.31
EV to Cash from Ops. -7.50 23.25
EV to Debt 617.60 738.44
EV to EBIT -5.71 -9.16
EV to EBITDA -5.28 6.95
EV to Free Cash Flow [EV/FCF] -7.49 21.90
EV to Market Cap 0.82 65.67
EV to Revenue 490.37 227.32
Price to Book Value [P/B] 6.45 22.34
Price to Earnings [P/E] -7.23 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage -70.71 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 0.00 -27.13
Cash and Equivalents Growth (1y) % -39.52 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 6.87 -46.93
EBITDA Growth (1y) % -21.88 -1.68
EBIT Growth (1y) % 5.99 -56.45
EBT Growth (1y) % 7.39 -12.70
EPS Growth (1y) % 0.00 -28.31
FCF Growth (1y) % -8.36 -31.90
Gross Profit Growth (1y) % -71.09 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.01 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 8.09 3.85
Current Ratio 8.71 7.27
Debt to Equity Ratio 0.01 0.40
Interest Cover Ratio -70.71 841.00
Times Interest Earned -70.71 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -8,417.40 -18,234.31
EBIT Margin % -8,583.60 -18,580.80
EBT Margin % -8,705.00 -19,488.74
Gross Margin % 73.60 -7.59
Net Profit Margin % -8,314.60 -19,439.22