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MESOMesoblast Limited
$14.33$1.8B
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  4. Financial Ratios

Mesoblast Limited (MESO) Financial Ratios

Latest Ratios: P/E Ratio -17.1x · EV/EBITDA N/A · ROE -19.0%. (2005–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

MESO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.8B$1.3B$672M$656M$303M$905M$1.2B$525M$512M$855M$426M
Enterprise Value$1.8B$1.3B$728M$702M$350M$874M$1.2B$556M$534M$809M$404M
P/E Ratio →-17.06——————————
P/S Ratio107.5176.48113.8587.5029.69121.4037.4631.4029.54354.4310.01
P/B Ratio2.902.201.401.310.611.562.191.090.941.650.81
P/FCF———————————
P/OCF———————————

P/E links to full P/E history page with 30-year chart

MESO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—74.56123.4093.5734.28117.1936.5333.2430.79335.469.49
EV / EBITDA———————————
EV / EBIT———————————
EV / FCF———————————

MESO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin70.2%70.2%-595.9%-632.2%-522.6%-1049.8%-153.4%-349.5%68.2%-400.2%30.0%
Operating Margin-363.1%-363.1%-1425.7%-923.7%-789.1%-1463.2%-232.8%-479.6%-446.0%-3733.1%-131.4%
Net Profit Margin-593.9%-593.9%-1490.3%-1091.7%-894.6%-1325.3%-242.4%-537.0%-203.5%-3184.7%-9.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-19.0%-19.0%-17.9%-16.4%-16.9%-17.5%-15.1%-17.5%-6.6%-14.7%-0.7%
ROA-14.1%-14.1%-13.1%-12.3%-13.0%-13.4%-11.2%-13.4%-5.2%-11.5%-0.5%
ROIC-8.5%-8.5%-11.6%-9.5%-11.0%-15.3%-10.9%-11.1%-11.2%-13.8%-7.7%
ROCE-9.8%-9.8%-13.8%-11.2%-12.8%-16.9%-12.0%-12.6%-12.0%-14.1%-6.9%

MESO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.210.210.250.230.220.180.180.170.11——
Debt / EBITDA———————————
Net Debt / Equity—-0.060.120.090.09-0.05-0.050.060.04-0.09-0.04
Net Debt / EBITDA———————————
Debt / FCF———————————
Interest Coverage-2.72-2.72-4.07-3.56-4.66-10.18-5.09-6.85-42.28——

Net cash position: cash ($161M) exceeds total debt ($128M)

MESO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.991.991.181.951.361.571.511.414.211.733.02
Quick Ratio1.771.771.181.951.361.571.521.426.031.361.01
Cash Ratio1.571.570.851.691.171.451.431.141.571.250.74
Asset Turnover—0.020.010.010.020.010.040.030.030.000.06
Inventory Turnover0.230.23———————0.870.50
Days Sales Outstanding—315.511295.74340.52157.39224.7015.0138.00974.03195.516.13

MESO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———————————
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$121M$99M$84M$68M$61M$53M$49M$47M$54M$54M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Regulatory and liquidity binary

Premium Pricing Amidst Regulatory Uncertainty

Based on reported figures, Mesoblast trades at a price-to-sales ratio of 98.96, which appears significantly elevated compared to peers, suggesting that the market is pricing in substantial future optionality rather than current revenue generation, which remains highly volatile and dependent on non-recurring milestone payments.

The extreme P/S multiple indicates that investors are valuing the company as a platform play rather than a commercial entity. This valuation is highly sensitive to binary regulatory outcomes, and any further delays in FDA approval could lead to a rapid contraction in multiples as the market re-evaluates the probability of successful commercialization.

Persistent Erosion of Invested Capital

As reported in financial statements, Mesoblast's ROIC has remained consistently negative, hovering around -4.6% in recent quarters, which highlights the company's inability to generate positive returns on the capital deployed into its long-dated and capital-intensive clinical development pipeline.

The negative ROIC trend reflects the structural challenge of funding high-cost R&D without a corresponding stream of commercial revenue. Until the company can demonstrate a path to self-sustaining margins, the return on invested capital will likely remain suppressed, necessitating continued reliance on dilutive financing to maintain operations.

Working Capital Inefficiencies Impede Liquidity

According to recent quarterly data, the cash conversion cycle has reached 823 days, indicating significant inefficiencies in managing working capital, which is exacerbated by the long lead times inherent in the company's proprietary cell manufacturing and clinical trial processes.

The extremely high DSO and DIO figures suggest that the company faces structural difficulties in converting its development activities into cash. This inefficiency places additional strain on the balance sheet, as the company must carry significant inventory and receivables while simultaneously funding its ongoing operating burn.

Precarious Liquidity Buffers Under Stress

Based on the most recent quarterly filings, the current ratio of 1.99 provides a temporary liquidity cushion, yet the historical volatility in cash reserves suggests that the company's ability to withstand severe regulatory or operational stress remains highly vulnerable to external funding conditions.

While the current ratio appears adequate on the surface, the underlying cash burn rate means that this liquidity is transient. Investors should monitor the company's ability to secure non-dilutive capital, as any disruption in milestone payments could rapidly deplete these reserves and force a reliance on equity markets.

Misapplication of Traditional Revenue Multiples

As highlighted by the company's financial structure, the P/S ratio is a commonly misapplied metric for Mesoblast, as it obscures the lumpy, non-recurring nature of milestone payments that do not reflect the underlying commercial demand for the firm's mesenchymal precursor cell platform.

Using P/S to value this business model is misleading because it fails to distinguish between stable royalty income and transactional milestone payments. Analysts should instead focus on the durability of the Japanese royalty stream and the progress of manufacturing validation as more reliable indicators of the company's intrinsic value.

Download Financial Ratios Data

Includes 30+ ratios · 21 years · Updated daily

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MESO — Frequently Asked Questions

Quick answers to the most common questions about buying MESO stock.

What is Mesoblast Limited's P/E ratio?

Mesoblast Limited's current P/E ratio is -17.1x. The historical average is 23.8x.

What is Mesoblast Limited's ROE?

Mesoblast Limited's return on equity (ROE) is -19.0%. The historical average is -20.0%.

Is MESO stock overvalued?

Based on historical data, Mesoblast Limited is trading at a P/E of -17.1x. Compare with industry peers and growth rates for a complete picture.

What are Mesoblast Limited's profit margins?

Mesoblast Limited has 70.2% gross margin and -363.1% operating margin.