MeritValue

Mereo BioPharma Group plc

MREOdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Mereo BioPharma Group plc earns about -78% on equity, but has diluted owners by 32% over 4 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue$01$10M2$03$500,0003
Net income−$42.2M4−$29.5M5−$43.3M6−$41.9M6
Operating cash flow−$48.8M7−$21.1M8−$32.8M9−$31M9
Capital expenditure$13,00010$010$011$20,00011
Free cash flow (derived)−$48.8M7−$21.1M8−$32.8M9−$31M9
Total debt————
Cash & equivalents$68.2M12$57.4M13$69.8M14$41M14
Diluted shares603.2M659.5M739.6M797.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.51
your share of equity
Profit it earned you last year
−$0.53
Free cash flow it threw off
−$0.39
Debt you’d be carrying
—

10 shares is a claim on $0.51 of net worth that earned you −$0.53 and generated −$0.39 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-78% avg · 4y
FY22 -82%FY23 -58%FY24 -71%FY25 -102%

It earned an average -78% on equity over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+32% shares · 4y

Share count is up 32% over 4 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-12-31 · accession 0000950170-24-037348 (Revenues)
  2. 10-K · period ending 2023-12-31 · accession 0000950170-25-044787 (Revenues)
  3. 10-K · period ending 2024-12-31 · accession 0001193125-26-115226 (Revenues)
  4. 10-K · period ending 2022-12-31 · accession 0000950170-24-037348 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0000950170-25-044787 (NetIncomeLoss)
  6. 10-K · period ending 2024-12-31 · accession 0001193125-26-115226 (NetIncomeLoss)
  7. 10-K · period ending 2022-12-31 · accession 0000950170-24-037348 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0000950170-25-044787 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-12-31 · accession 0001193125-26-115226 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0000950170-24-037348 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2024-12-31 · accession 0001193125-26-115226 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-12-31 · accession 0000950170-24-037348 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0000950170-25-044787 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2024-12-31 · accession 0001193125-26-115226 (CashAndCashEquivalentsAtCarryingValue)