Is Mereo BioPharma Stock a Good Investment?
Mereo BioPharma Investment Advice | MREO |
- Examine Mereo BioPharma's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Mereo BioPharma's leadership team and their track record. Good management can help Mereo BioPharma navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact Mereo BioPharma's business and its evolving consumer preferences.
- Compare Mereo BioPharma's performance and market position to its competitors. Analyze how Mereo BioPharma is positioned in terms of product offerings, innovation, and market share.
- Check if Mereo BioPharma pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Mereo BioPharma's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Mereo BioPharma Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Mereo BioPharma Group is a good investment.
Sell | Buy |
Sell
Market Performance | Very Weak | Details | |
Volatility | Unstable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Mereo BioPharma Stock
Researching Mereo BioPharma's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 66.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.25. Mereo BioPharma Group had not issued any dividends in recent years.
To determine if Mereo BioPharma is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Mereo BioPharma's research are outlined below:
| Mereo BioPharma generated a negative expected return over the last 90 days | |
| Mereo BioPharma has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 10 M. Net Loss for the year was (29.47 M) with profit before overhead, payroll, taxes, and interest of 936 K. | |
| Mereo BioPharma Group currently holds about 94.3 M in cash with (21.13 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.81. | |
| Mereo BioPharma has a frail financial position based on the latest SEC disclosures | |
| Roughly 66.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: ADAGE CAPITAL PARTNERS GP, L.L.C. Increases Stake in Mereo BioPharma Group PLC |
Mereo BioPharma uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Mereo BioPharma Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Mereo BioPharma's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of March 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 26th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Mereo BioPharma's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Mereo BioPharma's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-09-05 | 2024-06-30 | -0.01 | -0.0862 | -0.0762 | 762 | ||
2020-06-15 | 2020-03-31 | -0.26 | -3.277 | -3.017 | 1160 |
Mereo BioPharma Target Price Consensus
Mereo target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Mereo BioPharma's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 7 | Strong Buy |
Most Mereo analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Mereo stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Mereo BioPharma Group, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMereo BioPharma Target Price Projection
Mereo BioPharma's current and average target prices are 2.52 and 7.22, respectively. The current price of Mereo BioPharma is the price at which Mereo BioPharma Group is currently trading. On the other hand, Mereo BioPharma's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Mereo BioPharma Market Quote on 26th of February 2025
Target Price
Analyst Consensus On Mereo BioPharma Target Price
Mereo BioPharma Analyst Ratings
Mereo BioPharma's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Mereo BioPharma stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Mereo BioPharma's financials, market performance, and future outlook by experienced professionals. Mereo BioPharma's historical ratings below, therefore, can serve as a valuable tool for investors.Know Mereo BioPharma's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Mereo BioPharma is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Mereo BioPharma Group backward and forwards among themselves. Mereo BioPharma's institutional investor refers to the entity that pools money to purchase Mereo BioPharma's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ubs Group Ag | 2024-12-31 | 2.6 M | Tejara Capital Ltd | 2024-12-31 | 2.3 M | Goldman Sachs Group Inc | 2024-12-31 | 2.1 M | Renaissance Technologies Corp | 2024-12-31 | 1.2 M | Great Point Partners Llc | 2024-12-31 | 1.1 M | Perceptive Advisors Llc | 2024-12-31 | 1.1 M | Integral Health Asset Management, Llc | 2024-12-31 | 1000 K | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 964.9 K | Marshall Wace Asset Management Ltd | 2024-12-31 | 866.3 K | Hhg Plc | 2024-12-31 | 17.1 M | Rubric Capital Management Lp | 2024-12-31 | 15.3 M |
Mereo BioPharma's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 630.8 M.Market Cap |
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Mereo BioPharma's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.52) | (0.54) | |
| Return On Capital Employed | (0.45) | (0.47) | |
| Return On Assets | (0.51) | (0.54) | |
| Return On Equity | (0.52) | (0.50) |
Determining Mereo BioPharma's profitability involves analyzing its financial statements and using various financial metrics to determine if Mereo BioPharma is a good buy. For example, gross profit margin measures Mereo BioPharma's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Mereo BioPharma's profitability and make more informed investment decisions.
Evaluate Mereo BioPharma's management efficiency
Mereo BioPharma Group has return on total asset (ROA) of (0.2386) % which means that it has lost $0.2386 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.4847) %, meaning that it created substantial loss on money invested by shareholders. Mereo BioPharma's management efficiency ratios could be used to measure how well Mereo BioPharma manages its routine affairs as well as how well it operates its assets and liabilities. As of the 26th of February 2025, Return On Tangible Assets is likely to drop to -0.54. In addition to that, Return On Capital Employed is likely to drop to -0.47. At this time, Mereo BioPharma's Total Assets are very stable compared to the past year. As of the 26th of February 2025, Net Tangible Assets is likely to grow to about 45.6 M, while Non Current Assets Total are likely to drop about 2.3 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.09 | 0.08 | |
| Tangible Book Value Per Share | 0.09 | 0.08 | |
| Enterprise Value Over EBITDA | (64.96) | (68.21) | |
| Price Book Value Ratio | 5.43 | 5.70 | |
| Enterprise Value Multiple | (11.18) | (11.73) | |
| Price Fair Value | 5.43 | 5.70 | |
| Enterprise Value | 1.3 B | 1.4 B |
Mereo BioPharma Group benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Beta 0.97 |
Basic technical analysis of Mereo Stock
As of the 26th of February, Mereo BioPharma secures the Risk Adjusted Performance of (0.06), standard deviation of 3.94, and Mean Deviation of 2.78. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Mereo BioPharma Group, as well as the relationship between them.Mereo BioPharma's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Mereo BioPharma insiders, such as employees or executives, is commonly permitted as long as it does not rely on Mereo BioPharma's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Mereo BioPharma insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Mereo BioPharma's Outstanding Corporate Bonds
Mereo BioPharma issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Mereo BioPharma Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Mereo bonds can be classified according to their maturity, which is the date when Mereo BioPharma Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MERCURY GEN P Corp BondUS589400AB62 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US58942HAC51 Corp BondUS58942HAC51 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Mereo BioPharma's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Mereo BioPharma's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.37) | |||
| Mean Deviation | 2.78 | |||
| Coefficient Of Variation | (1,141) | |||
| Standard Deviation | 3.94 | |||
| Variance | 15.53 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.36) | |||
| Total Risk Alpha | (0.38) | |||
| Treynor Ratio | (0.38) | |||
| Maximum Drawdown | 20.77 | |||
| Value At Risk | (6.32) | |||
| Potential Upside | 6.16 | |||
| Skewness | 0.4656 | |||
| Kurtosis | 1.45 |
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.37) | |||
| Mean Deviation | 2.78 | |||
| Coefficient Of Variation | (1,141) | |||
| Standard Deviation | 3.94 | |||
| Variance | 15.53 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.36) | |||
| Total Risk Alpha | (0.38) | |||
| Treynor Ratio | (0.38) | |||
| Maximum Drawdown | 20.77 | |||
| Value At Risk | (6.32) | |||
| Potential Upside | 6.16 | |||
| Skewness | 0.4656 | |||
| Kurtosis | 1.45 |
Consider Mereo BioPharma's intraday indicators
Mereo BioPharma intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Mereo BioPharma stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 352815.0 | |||
| Daily Balance Of Power | (0.63) | |||
| Rate Of Daily Change | 0.94 | |||
| Day Median Price | 2.62 | |||
| Day Typical Price | 2.58 | |||
| Price Action Indicator | (0.18) | |||
| Period Momentum Indicator | (0.17) | |||
| Relative Strength Index | 42.72 |
Mereo BioPharma Corporate Filings
| 12th of February 2025 Other Reports | ViewVerify | |
F4 | 6th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 23rd of January 2025 Other Reports | ViewVerify | |
8K | 13th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Mereo Stock media impact
Far too much social signal, news, headlines, and media speculation about Mereo BioPharma that are available to investors today. That information is available publicly through Mereo media outlets and privately through word of mouth or via Mereo internal channels. However, regardless of the origin, that massive amount of Mereo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Mereo BioPharma news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Mereo BioPharma relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Mereo BioPharma's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Mereo BioPharma alpha.
Mereo BioPharma Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Mereo BioPharma can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Mereo BioPharma Corporate Management
| Christine CPA | Chief Officer | Profile | |
| Bo Kara | Senior CMC | Profile | |
| Fiona Bor | Head Property | Profile | |
| Jackie Parkin | Therapy Endocrinology | Profile | |
| MBBS MD | CoFounder Strategy | Profile | |
| John Lewicki | Chief Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mereo BioPharma Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mereo BioPharma. If investors know Mereo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mereo BioPharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Mereo BioPharma Group is measured differently than its book value, which is the value of Mereo that is recorded on the company's balance sheet. Investors also form their own opinion of Mereo BioPharma's value that differs from its market value or its book value, called intrinsic value, which is Mereo BioPharma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mereo BioPharma's market value can be influenced by many factors that don't directly affect Mereo BioPharma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Mereo BioPharma's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Mereo BioPharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mereo BioPharma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.