Merus (MRUS) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: N/A
• Average Volume (3M): 904.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 42.77%
• EPS Growth: -51.27%
• Country: US
• Employees: 260
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -1.40
• Shares Outstanding: 74,476,730
• 10 Day Avg. Volume: 517,946
• 30 Day Avg. Volume: 904,037
• PEG Ratio: 0.56
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.95
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 24.08
• Enterprise Value/Gross Profit: 71.26
• Enterprise Value/Ebitda: -3.67
• 1Y Price Target: $94.70
• Price Target Upside: 49.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 61 Neutral
• Price Target: $67.00 ▲(5.91%Upside)

Merus's overall score is primarily influenced by strong technical indicators and positive corporate events, which are offset by financial performance challenges and negative valuation metrics. The company's recent public offering and promising trial results provide a positive outlook, but financial and valuation concerns remain.

Positive Factors

Earnings Potential

The price objective for Merus NV stock is set at 92.00 USD, indicating significant potential upside from the current price.

Regulatory Progress

The company is confident in the regulatory path for petosemtamab in head and neck squamous cell carcinoma, with phase 3 trials showing promising results in both HPV+ and HPV- patients.

Negative Factors

Data Interpretation

We're slightly puzzled by BCAX's reporting of sum of target lesion diameters as evidence of high tumor burden, as this data was provided without context.

Investor Sentiment

Petosemtamab's opportunity remains unappreciated by investors, partially due to disappointing yet uninformative dose escalation data.

Merus Business Overview & Revenue Model

Company Description

Merus N.V., a clinical-stage immuno-oncology company, engages in the discovery and development of bispecific antibody therapeutics in the Netherlands. Its bispecific antibody candidate pipeline includes Zenocutuzumab (MCLA-128), which is in a phase 2 clinical trials for the treatment of patients with metastatic breast cancer, as well as in Phase 1/2 clinical trials for the treatment of solid tumors that harbor Neuregulin 1. The company is also developing MCLA-158, which is in a phase I clinical trial for the treatment of solid tumors; MCLA-145, which is in phase 1 clinical trials for the treatment of solid tumors; MCLA-129, which is in phase 1/2 clinical trials for the treatment of patients with advanced non-small cell lung cancer and other solid tumors; and ONO-4685 that is Phase 1 clinical trial to treat relapsed/refractory T cell lymphoma. In addition, it has collaboration agreement with Betta Pharmaceuticals Co. Ltd for the research and development of stage bispecific antibody candidates include MCLA-129; and collaboration with Incyte Corporation for the development of MCLA-145. The company was incorporated in 2003 and is headquartered in Utrecht, the Netherlands.

How the Company Makes Money

Merus generates revenue primarily through collaborations and partnerships with larger pharmaceutical companies. These agreements often involve upfront payments, milestone payments based on the achievement of specific development, regulatory, or sales goals, and royalties on potential future sales of any resulting products. The company also engages in research and development activities that may be funded by collaborative partners, contributing to its revenue streams. Additionally, Merus may receive grants and funding from government or non-profit organizations dedicated to advancing cancer research.

Merus Financial Statement Overview

Summary

Though Merus has demonstrated revenue growth, its financial performance is hindered by substantial net losses and negative cash flow, indicating significant operational and profitability challenges. The strong equity base offers some stability, but ongoing losses necessitate strategic financial improvements.

Income Statement

Merus has shown inconsistent revenue growth, with a noticeable increase to $54.73M in TTM from $36.13M in the previous year. Despite this growth, the company consistently reports net losses, with a TTM net income margin of -506.74% and declining EBIT and EBITDA margins, indicating significant operational challenges and profitability issues.

Balance Sheet

The company maintains a strong equity position, with a high equity ratio of 81.55% in TTM, reflecting a stable capital structure. The debt-to-equity ratio is low at 0.30, indicating minimal leverage risk. However, ongoing net losses could erode equity over time if trends do not improve.

Cash Flow

Merus has experienced negative free cash flow growth, with TTM free cash flow at -$239.68M. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. While financing cash flow remains positive, the reliance on external funding could pose sustainability concerns.

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
EBITDA	-269.60M	-154.01M	-148.26M	-77.75M	-60.93M
Net Income	-215.33M	-154.94M	-131.19M	-66.82M	-85.51M
Balance Sheet
Total Assets	785.13M	455.49M	376.54M	456.60M	231.22M
Cash, Cash Equivalents and Short-Term Investments	537.03M	355.18M	290.23M	410.43M	207.75M
Total Debt	9.91M	12.16M	13.47M	3.75M	3.95M
Total Liabilities	134.77M	99.15M	129.49M	140.40M	128.95M
Stockholders Equity	647.93M	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

• Technical Analysis Sentiment: Positive
• Last Price: 63.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 63.26 is above the 20-day moving average (MA) of 54.66, above the 50-day MA of 51.71, and above the 200-day MA of 46.88, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 74.18 is Negative, neither overbought nor oversold. The STOCH value of 97.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRUS.

Merus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRYS	80 Outperform	$4.26B	35.52	13.90%	―	247.53%	118.34%
PTCT	71 Outperform	$3.82B	7.45	33.08%	―	91.12%	―
Sector *	65 Neutral	¥347.74B	11.06	-2.99%	2.55%	11.77%	-10.16%
MRUS	61 Neutral	$4.10B	―	-58.66%	―	42.77%	-51.27%
AKRO	60 Neutral	$4.27B	―	-27.92%	―	―	-31.37%
RNA	53 Neutral	$3.82B	―	-34.19%	―	-17.87%	-1.89%
ZLAB	52 Neutral	$3.92B	―	-32.05%	―	43.72%	28.63%

Merus Corporate Events

Merus Announces Public Offering of Common Shares

On June 3, 2025, Merus N.V. entered into an underwriting agreement with several underwriters for a public offering of 5,263,158 common shares at $57.00 per share, expected to close around June 5, 2025. The company anticipates net proceeds of approximately $281.7 million, which will be used to fund operations into 2028, advance clinical development, and support corporate purposes, enhancing its financial stability and market position.

The most recent analyst rating on (MRUS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.

Merus Announces Promising Phase 2 Trial Results

On May 22, 2025, Merus announced interim clinical data from a phase 2 trial of its bispecific antibody, petosemtamab, in combination with pembrolizumab. The trial showed promising results with a 63% overall response rate among 43 evaluable patients, including complete and partial responses across various cancer types and PD-L1 levels. The treatment was generally well tolerated, with no significant overlapping toxicities observed. The company plans to potentially share top line interim results of phase 3 trials in 2026.

The most recent analyst rating on (MRUS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.

Merus Shareholders Approve Key Proposals at AGM

On May 21, 2025, Merus N.V. held its annual general meeting of shareholders, with 89.20% of the company’s outstanding common shares represented. During the meeting, shareholders approved several proposals, including the adoption of the 2024 annual accounts, the appointment of KPMG as the external auditor for 2025, and the re-appointment of Anand Mehra, M.D. and Maxine Gowen, Ph.D. as non-executive directors. These decisions are expected to influence the company’s governance and operational strategies in the coming years.

The most recent analyst rating on (MRUS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Merus stock, see the MRUS Stock Forecast page.