Mersana Therapeutics EBITDA vs. Return On Equity

MRSN Stock  USD 2.27  0.10  4.22%   
Based on Mersana Therapeutics' profitability indicators, Mersana Therapeutics may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Mersana Therapeutics' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
-166.1 M
Current Value
-157.8 M
Quarterly Volatility
69.2 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Mersana Therapeutics' Days Sales Outstanding is very stable compared to the past year. As of the 5th of December 2024, Days Of Sales Outstanding is likely to grow to 389.29, while Price To Sales Ratio is likely to drop 6.94. At this time, Mersana Therapeutics' Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 5th of December 2024, Interest Income is likely to grow to about 11.6 M, though Operating Income is likely to grow to (162.4 M).
For Mersana Therapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mersana Therapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mersana Therapeutics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mersana Therapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mersana Therapeutics over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
To learn how to invest in Mersana Stock, please use our How to Invest in Mersana Therapeutics guide.
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
(0.57)
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.
Please note, there is a significant difference between Mersana Therapeutics' value and its price as these two are different measures arrived at by different 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.

Mersana Therapeutics Return On Equity vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Mersana Therapeutics's current stock value. Our valuation model uses many indicators to compare Mersana Therapeutics value to that of its competitors to determine the firm's financial worth.
Mersana Therapeutics is rated below average in ebitda category among its peers. It is rated below average in return on equity category among its peers . Mersana Therapeutics reported last year EBITDA of (166.08 Million). The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Mersana Therapeutics' earnings, one of the primary drivers of an investment's value.

Mersana Return On Equity vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Mersana Therapeutics

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(166.08 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Mersana Therapeutics

Return On Equity

 = 

Net Income

Total Equity

 = 
-2.13
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Mersana Return On Equity Comparison

Mersana Therapeutics is currently under evaluation in return on equity category among its peers.

Mersana Therapeutics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Mersana Therapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mersana Therapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Mersana Therapeutics' change in net profit over the period of time. It can combine multiple indicators of Mersana Therapeutics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income11 K11.6 K
Interest Income11 M11.6 M
Operating Income-171 M-162.4 M
Net Loss-197.1 M-187.2 M
Income Before Tax-171.7 M-163.1 M
Total Other Income Expense Net-713 K-677.4 K
Net Loss-183.8 M-174.6 M
Net Loss-171.7 M-163.1 M
Income Tax Expense1.3 M1.4 M
Net Interest IncomeM7.4 M
Non Operating Income Net Other58.5 K55.6 K
Change To Netincome23.9 M25.1 M
Net Loss(1.48)(1.55)
Income Quality 0.98  0.50 
Net Income Per E B T 0.91  0.79 

Mersana Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Mersana Therapeutics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Mersana Therapeutics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Mersana Therapeutics' important profitability drivers and their relationship over time.

Use Mersana Therapeutics in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Mersana Therapeutics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mersana Therapeutics will appreciate offsetting losses from the drop in the long position's value.

Mersana Therapeutics Pair Trading

Mersana Therapeutics Pair Trading Analysis

The ability to find closely correlated positions to Mersana Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mersana Therapeutics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Mersana Therapeutics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Mersana Therapeutics to buy it.
The correlation of Mersana Therapeutics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mersana Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mersana Therapeutics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Mersana Therapeutics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Mersana Therapeutics position

In addition to having Mersana Therapeutics in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Computers Thematic Idea Now

Computers
Computers Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Computers theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Computers Theme or any other thematic opportunities.
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When determining whether Mersana Therapeutics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Mersana Therapeutics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mersana Therapeutics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mersana Therapeutics Stock:
Check out Correlation Analysis.
To learn how to invest in Mersana Stock, please use our How to Invest in Mersana Therapeutics guide.
You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
To fully project Mersana Therapeutics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Mersana Therapeutics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Mersana Therapeutics' income statement, its balance sheet, and the statement of cash flows.
Potential Mersana Therapeutics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Mersana Therapeutics investors may work on each financial statement separately, they are all related. The changes in Mersana Therapeutics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Mersana Therapeutics's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.