Is Mersana Therapeutics Stock a Good Investment?
Mersana Therapeutics Investment Advice | MRSN |
- Examine Mersana Therapeutics' 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 Mersana Therapeutics' leadership team and their track record. Good management can help Mersana Therapeutics 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 Mersana Therapeutics' business and its evolving consumer preferences.
- Compare Mersana Therapeutics' performance and market position to its competitors. Analyze how Mersana Therapeutics is positioned in terms of product offerings, innovation, and market share.
- Check if Mersana Therapeutics pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Mersana Therapeutics' 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 Mersana Therapeutics 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 Mersana Therapeutics is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Dangerous | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | 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 Mersana Therapeutics Stock
Researching Mersana Therapeutics' 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 95.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.6. Mersana Therapeutics had not issued any dividends in recent years.
To determine if Mersana Therapeutics 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 Mersana Therapeutics' research are outlined below:
| Mersana Therapeutics is way too risky over 90 days horizon | |
| Mersana Therapeutics appears to be risky and price may revert if volatility continues | |
| Mersana Therapeutics has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 36.85 M. Net Loss for the year was (171.67 M) with loss before overhead, payroll, taxes, and interest of (146.8 M). | |
| Mersana Therapeutics currently holds about 225.13 M in cash with (168.88 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.32, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Mersana Therapeutics has a frail financial position based on the latest SEC disclosures | |
| Over 95.0% of the company shares are owned by institutional investors | |
| Latest headline from insidermonkey.com: Mersana Therapeutics, Inc. Q3 2024 Earnings Call Transcript |
Mersana Therapeutics 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 Mersana Therapeutics. 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 Mersana Therapeutics' 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.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 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 Mersana Therapeutics' 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 Mersana Therapeutics' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-09 | 2024-03-31 | -0.18 | -0.16 | 0.02 | 11 | ||
2024-08-13 | 2024-06-30 | -0.17 | -0.2 | -0.03 | 17 | ||
2020-11-09 | 2020-09-30 | -0.3 | -0.33 | -0.03 | 10 | ||
2020-08-07 | 2020-06-30 | -0.3 | -0.33 | -0.03 | 10 | ||
2020-02-28 | 2019-12-31 | -0.38 | -0.34 | 0.04 | 10 | ||
2023-02-28 | 2022-12-31 | -0.5 | -0.44 | 0.06 | 12 | ||
2018-05-14 | 2018-03-31 | -0.61 | -0.54 | 0.07 | 11 | ||
2023-05-09 | 2023-03-31 | -0.44 | -0.52 | -0.08 | 18 |
Know Mersana Therapeutics' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Mersana Therapeutics is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Mersana Therapeutics backward and forwards among themselves. Mersana Therapeutics' institutional investor refers to the entity that pools money to purchase Mersana Therapeutics' 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 | Geode Capital Management, Llc | 2024-09-30 | 2.4 M | Schonfeld Strategic Advisors Llc | 2024-09-30 | 2.2 M | Jpmorgan Chase & Co | 2024-06-30 | 2 M | Boxer Capital Llc | 2024-09-30 | 1.8 M | Deutsche Bank Ag | 2024-06-30 | 1.6 M | Woodline Partners Lp | 2024-06-30 | 1.5 M | 5am Venture Management, Llc | 2024-09-30 | 1.3 M | Goldman Sachs Group Inc | 2024-06-30 | 1.2 M | Longwood Capital Partners Llc | 2024-09-30 | 1.2 M | Ecor1 Capital, Llc | 2024-09-30 | 19.4 M | Nextech Invest Ag | 2024-09-30 | 12.1 M |
Mersana Therapeutics' market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 270.54 M.Market Cap |
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Mersana Therapeutics' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.76) | (0.80) | |
| Return On Capital Employed | (1.05) | (1.11) | |
| Return On Assets | (0.76) | (0.80) | |
| Return On Equity | (4.65) | (4.42) |
Determining Mersana Therapeutics' profitability involves analyzing its financial statements and using various financial metrics to determine if Mersana Therapeutics is a good buy. For example, gross profit margin measures Mersana Therapeutics' 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 Mersana Therapeutics' profitability and make more informed investment decisions.
Evaluate Mersana Therapeutics' management efficiency
Mersana Therapeutics has return on total asset (ROA) of (0.263) % which means that it has lost $0.263 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (2.1333) %, meaning that it created substantial loss on money invested by shareholders. Mersana Therapeutics' management efficiency ratios could be used to measure how well Mersana Therapeutics manages its routine affairs as well as how well it operates its assets and liabilities. As of the 29th of November 2024, Return On Tangible Assets is likely to drop to -0.8. In addition to that, Return On Capital Employed is likely to drop to -1.11. At this time, Mersana Therapeutics' Other Current Assets are very stable compared to the past year. As of the 29th of November 2024, Fixed Asset Turnover is likely to grow to 5.34, while Total Assets are likely to drop about 180.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.32 | 0.30 | |
| Tangible Book Value Per Share | 0.32 | 0.30 | |
| Enterprise Value Over EBITDA | (0.77) | (0.81) | |
| Price Book Value Ratio | 7.30 | 7.66 | |
| Enterprise Value Multiple | (0.77) | (0.81) | |
| Price Fair Value | 7.30 | 7.66 | |
| Enterprise Value | 128.7 M | 122.2 M |
Leadership at Mersana Therapeutics emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta 1.475 |
Basic technical analysis of Mersana Stock
As of the 29th of November, Mersana Therapeutics secures the Mean Deviation of 4.85, risk adjusted performance of 0.0928, and Downside Deviation of 5.85. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Mersana Therapeutics, as well as the relationship between them.Mersana Therapeutics' 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 Mersana Therapeutics insiders, such as employees or executives, is commonly permitted as long as it does not rely on Mersana Therapeutics' 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 Mersana Therapeutics 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.
Mersana Therapeutics' Outstanding Corporate Bonds
Mersana Therapeutics 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. Mersana Therapeutics 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 Mersana bonds can be classified according to their maturity, which is the date when Mersana Therapeutics 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.
Understand Mersana Therapeutics' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Mersana Therapeutics' 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 | 0.0928 | |||
| Market Risk Adjusted Performance | 0.1851 | |||
| Mean Deviation | 4.85 | |||
| Semi Deviation | 5.09 | |||
| Downside Deviation | 5.85 | |||
| Coefficient Of Variation | 913.21 | |||
| Standard Deviation | 6.62 | |||
| Variance | 43.83 | |||
| Information Ratio | 0.0906 | |||
| Jensen Alpha | 0.2438 | |||
| Total Risk Alpha | (0.28) | |||
| Sortino Ratio | 0.1025 | |||
| Treynor Ratio | 0.1751 | |||
| Maximum Drawdown | 32.25 | |||
| Value At Risk | (9.72) | |||
| Potential Upside | 12.03 | |||
| Downside Variance | 34.22 | |||
| Semi Variance | 25.89 | |||
| Expected Short fall | (5.88) | |||
| Skewness | 0.6625 | |||
| Kurtosis | 1.07 |
| Risk Adjusted Performance | 0.0928 | |||
| Market Risk Adjusted Performance | 0.1851 | |||
| Mean Deviation | 4.85 | |||
| Semi Deviation | 5.09 | |||
| Downside Deviation | 5.85 | |||
| Coefficient Of Variation | 913.21 | |||
| Standard Deviation | 6.62 | |||
| Variance | 43.83 | |||
| Information Ratio | 0.0906 | |||
| Jensen Alpha | 0.2438 | |||
| Total Risk Alpha | (0.28) | |||
| Sortino Ratio | 0.1025 | |||
| Treynor Ratio | 0.1751 | |||
| Maximum Drawdown | 32.25 | |||
| Value At Risk | (9.72) | |||
| Potential Upside | 12.03 | |||
| Downside Variance | 34.22 | |||
| Semi Variance | 25.89 | |||
| Expected Short fall | (5.88) | |||
| Skewness | 0.6625 | |||
| Kurtosis | 1.07 |
Consider Mersana Therapeutics' intraday indicators
Mersana Therapeutics 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 Mersana Therapeutics 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 | 0.0746 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 2.19 | |||
| Day Typical Price | 2.22 | |||
| Market Facilitation Index | 0.17 | |||
| Price Action Indicator | 0.085 |
Mersana Therapeutics Corporate Filings
F3 | 15th of November 2024 An amendment to the original Schedule 13D filing | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 13th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 29th of October 2024 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 |
Mersana Stock media impact
Far too much social signal, news, headlines, and media speculation about Mersana Therapeutics that are available to investors today. That information is available publicly through Mersana media outlets and privately through word of mouth or via Mersana internal channels. However, regardless of the origin, that massive amount of Mersana 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 Mersana Therapeutics 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 Mersana Therapeutics 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 Mersana Therapeutics' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Mersana Therapeutics alpha.
Mersana Therapeutics Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Mersana Therapeutics 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.
Mersana Therapeutics Corporate Management
| Chuck Miller | Senior Affairs | Profile | |
| Carla Poulson | Chief Officer | Profile | |
| Marc Damelin | Oncology, Biology | Profile | |
| Jason Fredette | Senior Communications | Profile | |
| Mohan Bala | Senior Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mersana Therapeutics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. To learn how to invest in Mersana Stock, please use our How to Invest in Mersana Therapeutics guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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 Mersana Therapeutics. If investors know Mersana 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 Mersana Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.60) | Revenue Per Share 0.286 | Quarterly Revenue Growth 0.637 | Return On Assets (0.26) | Return On Equity (2.13) |
The market value of Mersana Therapeutics is measured differently than its book value, which is the value of Mersana that is recorded on the company's balance sheet. Investors also form their own opinion of Mersana Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Mersana Therapeutics' 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 Mersana Therapeutics' market value can be influenced by many factors that don't directly affect Mersana Therapeutics' 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 Mersana Therapeutics' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Mersana Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mersana Therapeutics' 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.