Mereo BioPharma Group plc (MREO) AI Stock Analysis

Mereo BioPharma Group plc is a biopharmaceutical company founded in 2015 and headquartered in London, United Kingdom. It develops and commercializes innovative therapeutics for oncology and rare diseases. In oncology, its lead asset is etigilimab, an antibody targeting T-cell immunoreceptors currently in Phase 1b clinical trials, advanced in collaboration with The University of Texas MD Anderson Cancer Center. It is also developing Navicixizumab for ovarian cancer, Acumapimod for chronic obstructive pulmonary disease, and Leflutrozole for hypogonadotropic hypogonadism. In rare diseases, Mereo is developing Setrusumab for osteogenesis imperfecta and Alvelestat for Alpha-1 antitrypsin deficiency.

Revenue has fluctuated across recent reporting periods, starting at $393,000 in FY2020 before reaching $49.2M in FY2021. Revenue fell 96.9% to $1.5M in FY2022, rose to $10.0M in FY2023, and fell 95.0% to $500,000 in FY2025. In FY2025, gross margin was 73.4%, operating margin was -7651.4%, and net income was -$41.9M, producing an EPS of -$0.05. R&D expense was $17.8M in FY2025. For the trailing twelve months ended June 30, 2026, revenue was $0, EPS was -$0.20, return on equity was -67.8%, and return on assets was -42.5%.

As of June 30, 2026, Mereo held $30.1M in cash and short-term investments and $1.0M in total debt, resulting in net cash of $29.1M. Total assets were $34.7M and shareholders' equity was $28.7M, yielding a current ratio of 5.88 and a debt-to-equity ratio of 0.04. In FY2025, operating cash flow was -$31.0M and free cash flow was -$31.0M. FY2025 capital expenditures were $20,000, and the company's share count increased 37.7% over five years.

With a market capitalization of $48.4M and an enterprise value of $25.6M, Mereo trades at a price-to-sales multiple of 97.5x, compared to the median of 4.1x for its US-listed Healthcare peers. Its price-to-book ratio is 1.9x and EV to revenue is 20.4x. Over the past year, the stock fell 84.8%, while the S&P 500 gained 16.8%. Over five years, the stock decreased 86.1%, trailing the S&P 500 return of 83.0%. The stock closed at $0.30 on October 16, 2026, 11.9% below its 200-day average.

Wall Street coverage includes 4 Strong Buy, 1 Buy, 2 Hold, and 1 Sell ratings. The mean price target is $1.98, representing a 554.1% premium over the last close of $0.30. For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$0.04 on revenue of $0. For the following fiscal year, 6 analysts project revenue of $14.4M and an EPS of -$0.02. The company has beaten EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 9, 2026.

This page is an AI-written research summary of Mereo BioPharma Group plc (MREO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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