Mesoblast (MESO) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: N/A
• Average Volume (3M): 265.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 191.53%
• EPS Growth: 5.09%
• Country: US
• Employees: 73
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 127,996,720
• 10 Day Avg. Volume: 331,427
• 30 Day Avg. Volume: 265,083
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 238.47
• Enterprise Value/Gross Profit: -59.92
• Enterprise Value/Ebitda: -27.36
• 1Y Price Target: $27.00
• Price Target Upside: 70.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $17.50 ▲(10.34% Upside)

Mesoblast's overall stock score is driven by its strong technical momentum, which is offset by weak financial performance and valuation metrics. The company's significant revenue growth and market access achievements are promising, but profitability challenges and a negative P/E ratio weigh heavily on the score.

Positive Factors

Revenue Growth

The substantial revenue growth demonstrates strong market demand for Mesoblast's products, indicating successful commercialization efforts and potential for sustained future growth.

FDA Approval and Market Access

FDA approval and broad market access for Ryoncil enhance Mesoblast's competitive position, providing a significant advantage in the regenerative medicine market.

Promising FDA Feedback

The FDA's support for accelerated approval of Revascor suggests potential for early market entry, expanding Mesoblast's product portfolio and revenue streams.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as indicated by negative margins, may hinder Mesoblast's ability to reinvest in growth and sustain operations without external funding.

Increased Operational Expenses

Rising operational expenses could pressure margins and cash flow, potentially limiting Mesoblast's ability to invest in R&D and new product development.

Revaluation Losses

Significant revaluation losses reflect financial volatility, which could impact investor confidence and the company's financial stability.

Mesoblast Business Overview & Revenue Model

Company Description

Mesoblast Limited is a global leader in regenerative medicine, specializing in the development of innovative allogeneic cellular medicines. The company operates primarily within the biotechnology sector, focusing on the research, development, and commercialization of cellular therapies. Mesoblast's core products are based on its proprietary mesenchymal lineage cell technology platform, which aims to address significant unmet medical needs across various therapeutic areas, including inflammatory diseases, cardiovascular diseases, and orthopedic disorders.

How the Company Makes Money

Mesoblast generates revenue through licensing agreements, milestone payments, and royalties related to its proprietary regenerative medicine products. The company collaborates with other pharmaceutical companies to develop and commercialize its cellular therapies, thereby receiving upfront payments and potential milestone payments based on the achievement of specific regulatory and sales milestones. Additionally, Mesoblast earns royalties from sales of its products once they are successfully brought to market. The company's revenue model is heavily influenced by its strategic partnerships, clinical trial progress, and regulatory approvals, which are critical factors in advancing its product pipeline and driving future earnings.

Mesoblast Financial Statement Overview

Summary

Mesoblast's financial performance shows significant revenue growth but persistent profitability challenges. The income statement reveals substantial losses, and while the balance sheet is stable with moderate leverage, cash flow issues persist. The company needs to improve operational efficiencies and profitability.

Income Statement

Mesoblast's income statement reveals significant challenges. Despite a notable revenue growth rate of 203.32% in the latest year, the company continues to face substantial losses, with a net profit margin of -5.94% and negative EBIT and EBITDA margins. This indicates ongoing operational inefficiencies and a struggle to achieve profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.21, suggesting manageable leverage levels. However, the return on equity is negative at -17.10%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at a healthy level, indicating a stable capital structure.

Cash Flow

Cash flow analysis highlights some concerns, with negative operating cash flow and free cash flow. However, the free cash flow to net income ratio is slightly above 1, indicating that the company is generating cash relative to its net losses. The free cash flow growth rate of 140.51% suggests some improvement in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.67M	17.20M	5.90M	7.50M	10.21M	7.46M
Gross Profit	-22.57M	12.07M	-35.17M	-47.42M	-53.36M	-78.28M
EBITDA	-49.42M	-73.66M	-56.08M	-58.55M	-76.57M	-107.60M
Net Income	-103.35M	-102.14M	-87.96M	-81.89M	-91.35M	-98.81M
Balance Sheet
Total Assets	653.32M	784.68M	669.15M	669.41M	662.14M	744.72M
Cash, Cash Equivalents and Short-Term Investments	38.03M	161.16M	62.56M	70.92M	60.03M	136.88M
Total Debt	126.11M	128.16M	118.92M	116.50M	106.91M	105.50M
Total Liabilities	192.06M	187.24M	188.80M	167.58M	165.10M	163.32M
Stockholders Equity	461.26M	597.44M	480.36M	501.84M	497.04M	581.40M
Cash Flow
Free Cash Flow	-21.07M	-50.68M	-48.79M	-63.58M	-66.01M	-108.33M
Operating Cash Flow	-20.66M	-49.95M	-48.46M	-63.27M	-65.78M	-106.68M
Investing Cash Flow	618.00K	120.00K	-97.00K	-194.00K	-232.00K	-1.65M
Financing Cash Flow	4.39M	147.34M	40.25M	74.50M	-9.87M	114.47M

Mesoblast Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MESO, the sentiment is Positive. The current price of 15.86 is above the 20-day moving average (MA) of 15.18, above the 50-day MA of 15.42, and above the 200-day MA of 14.11, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 55.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MESO.

Mesoblast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	72 Outperform	1.58B	8.87	23.40%	―	17.74%	59.96%
IMCR	64 Neutral	1.71B	-82.25	-5.23%	―	26.90%	62.72%
ADPT	56 Neutral	2.01B	-16.24	-67.46%	―	21.60%	44.48%
MESO	54 Neutral	$2.05B	―	-18.96%	―	191.53%	5.09%
SRPT	49 Neutral	1.79B	-24.20	-4.27%	―	64.89%	-221.56%
COGT	37 Underperform	1.98B	-5.84	―	―	―	2.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Mesoblast Corporate Events

Mesoblast Announces Cessation of Securities and Capital Adjustments

On July 14, 2025, Mesoblast Limited announced several filings with the Australian Securities Exchange, including the cessation of 483,254 unquoted equity securities due to unmet conditions as of June 30, 2025. These changes reflect adjustments in the company’s issued capital, impacting its market capitalization and potentially influencing stakeholder perceptions.