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Merus NV (MRUS)
NASDAQ:MRUS
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Merus
(NASDAQ:MRUS)
52Neutral
Positive Factors
Clinical Trials
Petosemtamab is making significant strides in its clinical development, with ongoing Phase 3 trials in both first-line PD-L1+ recurrent/metastatic head and neck squamous cell carcinoma and second/third-line r/m HNSCC.
FDA Designation
The FDA's granting of Breakthrough Therapy Designation for peto reinforces its differentiated profile and continues to give investors confidence.
Negative Factors
Clinical Metrics
Investors will understandably want MRUS to exceed 7.8 months mPFS as that was the upper bound from PD-1 + EGFR in an HPV-agnostic setting.
Stock Performance
The stock is up +10% YTD versus XBI down -3%, likely due to increased confidence in peto's potential in HNSCC.
Merus (MRUS) vs. S&P 500 (SPY)
Market Cap
$3.26B
Dividend YieldN/A
Average Volume (3M)647.26K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-17.78%
EPS Growth-10.95%
CountryUS
Employees260
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.31
Shares Outstanding69,090,470
10 Day Avg. Volume618,405
30 Day Avg. Volume647,261
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)90.33
Price to Cash Flow (P/CF)-12.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$89.31Price Target Upside83.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Merus Business Overview & Revenue Model
Company DescriptionMerus N.V. (MRUS) is a clinical-stage oncology company that is engaged in the development of innovative multispecific antibody therapeutics. The company focuses on creating bispecific antibodies, known as Biclonics, for the treatment of various types of cancer. These products are designed to engage multiple targets simultaneously, offering a novel approach to cancer therapy.
How the Company Makes MoneyMerus makes money primarily through the development and commercialization of its proprietary antibody platforms and products. The company generates revenue through collaboration and licensing agreements with larger pharmaceutical companies. These partnerships often include upfront payments, milestone payments based on development progress, and royalties on potential future sales of successfully developed products. Merus also seeks to advance its clinical pipeline, which could potentially lead to direct revenue from product sales if any of its therapeutic candidates receive regulatory approval and are commercialized.
Merus Financial Statement Overview
Summary
Merus is facing significant challenges in achieving profitability and maintaining sustainable cash flows. Despite a strong capital base with minimal debt, the company struggles with operational efficiency and consistent revenue growth, necessitating strategic focus on improving operational performance.Income Statement
Merus has faced declining revenue and profitability challenges over recent years. The net profit margin remains negative due to substantial net losses, and EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Revenue growth is inconsistent, with recent declines, raising concerns about revenue generation capabilities.45
Neutral
Balance Sheet
The balance sheet reflects a high equity ratio, suggesting a strong capital base with minimal debt obligations. However, the company has been unable to convert equity into positive earnings, as evidenced by negative ROE. The lack of leverage mitigates financial risk but highlights the need for more effective use of equity.50
Neutral
Cash Flow
Merus shows a negative operating cash flow and free cash flow, indicating cash outflows exceed inflows, which is concerning for liquidity. The free cash flow to net income ratio is negative, reflecting unsustainable cash conservation. Financing cash flows are positive, suggesting reliance on external funds for cash needs.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 36.13M | 43.95M | 41.59M | 49.11M | 29.94M | Gross Profit |
| 36.13M | 43.95M | 29.60M | -37.16M | -27.39M | EBIT |
| -272.07M | -156.55M | -160.04M | -89.98M | -75.88M | EBITDA |
| -269.60M | -154.01M | -148.26M | -77.75M | -60.93M | Net Income Common Stockholders |
| -215.33M | -154.94M | -131.19M | -66.82M | -85.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 537.03M | 355.18M | 290.23M | 410.43M | 207.75M | Total Assets |
| 782.69M | 455.49M | 376.54M | 456.60M | 231.22M | Total Debt |
| 9.91M | 12.16M | 13.47M | 3.75M | 3.95M | Net Debt |
| -283.38M | -192.88M | -134.28M | -237.68M | -159.13M | Total Liabilities |
| 134.77M | 99.15M | 129.49M | 140.40M | 128.95M | Stockholders Equity |
| 201.43M | 356.34M | 247.06M | 316.20M | 102.26M |
| Cash Flow | Free Cash Flow | |||
| -187.50M | -146.19M | -157.54M | -60.50M | -81.19M | Operating Cash Flow |
| -185.84M | -142.21M | -149.90M | -59.63M | -79.90M | Investing Cash Flow |
| -220.22M | -27.02M | 2.80M | -146.62M | -1.49M | Financing Cash Flow |
| 494.01M | 230.09M | 58.74M | 281.95M | 39.52M |
Merus Technical Analysis
Positive
48.77
Price Trends
43.60
Positive
44.79
Positive
48.79
Negative
Market Momentum
1.15
Positive
60.79
Neutral
59.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRUS, the sentiment is Positive. The current price of 48.77 is above the 20-day moving average (MA) of 46.75, above the 50-day MA of 43.60, and below the 200-day MA of 48.79, indicating a neutral trend. The MACD of 1.15 indicates Positive momentum. The RSI at 60.79 is Neutral, neither overbought nor oversold. The STOCH value of 59.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRUS.
Merus Risk Analysis
Merus disclosed 81 risk factors in its most recent earnings report. Merus reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Merus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $37.42B | 44.28 | 17.33% | ― | 78.01% | ― | |
52 Neutral | $3.26B | ― | -42.88% | ― | -17.78% | -10.95% | |
49 Neutral | $6.94B | 0.66 | -52.58% | 2.47% | 22.65% | 0.94% | |
45 Neutral | $617.78M | ― | -42.91% | ― | ― | 2.90% | |
41 Neutral | $351.97M | ― | -55.13% | ― | -86.25% | 36.10% |
* Healthcare Sector Average
Performance Comparison
MRUS
Merus
48.77
4.01
8.96%
KURA
Kura Oncology
7.65
-13.34
-63.55%
ARGX
Argenx Se
607.95
209.53
52.59%
ALLO
Allogene Therapeutics
1.68
-2.61
-60.84%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.