# Mesoblast (MSB.AU)

Canonical: https://gigainvestors.com/s/MSB.AU

Analysis as of: 2026-10-16T07:41:33.799Z. Financial observations: FY2005–FY2026.

Listing currency: AUD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 1.94 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 10

- Operating margin variation: 1.03×

Chart: Operating margin; fiscal year observations.

- FY2017: -37.33×

- FY2018: -4.46×

- FY2019: -4.80×

- FY2020: -2.33×

- FY2021: -14.63×

- FY2022: -7.89×

- FY2023: -9.24×

- FY2024: -14.26×

- FY2025: -3.63×

- FY2026: -0.43×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -15.5%

- ROIC, second-lowest year: -20.7%

- Typical minus recent gross margin: -445.0 pp

- Typical gross margin (annual median): -374.9%

- Recent gross margin (lower of latest and 3-year median): 70.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: -15.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -21.1%

- FY2018: -14.1%

- FY2019: -16.8%

- FY2020: -15.4%

- FY2021: -20.7%

- FY2022: -15.5%

- FY2023: -13.3%

- FY2024: -16.5%

- FY2025: -11.5%

- FY2026: -8.1%

### economics: fail

- owner earnings cash conversion below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$404M

- Net income, five-year total: -$422M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 32.6 pp

- Working capital / revenue, change between three-year averages: 280.4 pp

- Working capital / revenue, final three-year average: 141.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$89M

- FY2023: -$80M

- FY2024: -$85M

- FY2025: -$98M

- FY2026: -$53M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -16.8% vs -11.5%

- Per-share earnings: -0.07 to -0.08 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.2%

- Ordinary dilution, 5-year annual growth: 14.8%

- Market cap gain: $1.0B

- Cumulative retained earnings: -$724M

- Diluted shares, 10-year annual growth: 9.2%

- Diluted shares, 5-year annual growth: 14.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: -$0.02

- Per-share value, starting three-year median: -$0.07

- Per-share value, ending three-year median: -$0.08

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: $0

- Cumulative net income, 10 years: -$801M

- ROIC, first three-year median: -16.8%

- ROIC, last three-year median: -11.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.14

- FY2018: -$0.07

- FY2019: -$0.17

- FY2020: -$0.13

- FY2021: -$0.15

- FY2022: -$0.12

- FY2023: -$0.10

- FY2024: -$0.09

- FY2025: -$0.08

- FY2026: -$0.05

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 0.54×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 2.8%

- FY2018: 5.7%

- FY2019: -4.9%

- FY2020: -2.9%

- FY2021: 1.1%

- FY2022: -3.9%

- FY2023: -2.8%

- FY2024: -5.9%

- FY2025: -6.7%

- FY2026: -1.9%

## Holders

## Price story

Down 39% since Jan 2025 · sales +614.6%

Story as of 2026-10-16T10:00:11.984Z; price observation 2026-10-15.

- 2025-10-19: Ryoncil® Net Revenues Increase 69% in Second Quarter Post Launch ([finance.yahoo.com](https://finance.yahoo.com/news/ryoncil-net-revenues-increase-69-234800725.html))

- 2025-11-24: Mesoblast Trading Update at Annual General Meeting Highlights Continued Strong Growth in Ryoncil® Revenue ([finance.yahoo.com](https://finance.yahoo.com/news/mesoblast-trading-annual-general-meeting-233900528.html))

- 2026-07-10: Ryoncil® Delivers Net Revenue of US$36M for the Fourth Quarter Ended 30 June 2026 ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/ryoncil-delivers-net-revenue-us-003000076.html))

### Sales · FY2025–2026

sales +614.6%; source https://www.sec.gov/Archives/edgar/data/1345099/000134509926000081/meso-20260630.htm; observed 2026-08-27.

- FY2017: $2.4M 

- FY2018: $17M 

- FY2019: $17M 

- FY2020: $32M 

- FY2021: $7.5M 

- FY2022: $10M 

- FY2023: $7.5M 

- FY2024: $5.9M 

- FY2025: $17M 

- FY2026: $123M 

### Gross margin · FY2026

gross margin 84.1%; source https://www.sec.gov/Archives/edgar/data/1345099/000134509926000081/meso-20260630.htm; observed 2026-08-27.

- FY2018: 68.2% 

- FY2025: 70.2% 

- FY2026: 84.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in biotechnology; annual sales are USD 122.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/1345099/000134509926000081/meso-20260630.htm (filed 2026-08-27); FY2026: revenue 122890061; grossProfit 103344154; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MSB.AU: Mesoblast Limited, together with its subsidiaries, engages in the development of regenerative medicine products in Australia. The company's proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. It offers Ryoncil for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, Duchenne muscular dystrophy, and biologic refractory inflammatory bowel disease, as well as ulcerative colitis and Crohn's disease; Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease; and Revascor for the treatment of hypoplastic left heart syndrome. The company is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; MPC-150-IM for the treatment or prevention of chronic heart failure; Ryoncil for the treatment of pediatric SR-aGVHD; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM; Grünenthal GmbH to develop and commercialize MPC-06-ID for the treatment of chronic low back pain due to degenerative disc disease in patients; and JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa and for the treatment of neonatal hypoxic ischemic encephalopathy. Mesoblast Limited was incorporated in 2004 and is headquartered in Melbourne, Australia.

### Why customers stay

It lost 15.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-27); FY2024: grossProfit / revenue = -595.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-27); FY2025: grossProfit / revenue = 70.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1345099/000134509926000081/meso-20260630.htm (filed 2026-08-27); FY2026: grossProfit / revenue = 84.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-27); 10-year return on capital observations [[2017,-0.21135866077158952],[2018,-0.1410419239639049],[2019,-0.16785817797429656],[2020,-0.15368974091810247],[2021,-0.20739786022649065],[2022,-0.15545633050197577],[2023,-0.13255111875242154],[2024,-0.16525580343159432],[2025,-0.11472406206684838],[2026,-0.08054967261858431]]; median -0.1545730357100391. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-27); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 36.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MSB.AU SharesStats.PercentInsiders = 36.268 percentage points; cache date 2026-10-16.

### What the price says

The price is 14.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-27); Closing price 1.94 AUD; reporting-to-trading FX 1.4454626926079037; FY2026 annual sales per share 0.0949055519668599; price multiple 14.141752217706495. FY2026 cash earnings/share -0.040796457654232184. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-11: AUD 1.14 per share

- 2016-12: AUD 1.34 per share

- 2017-01: AUD 1.51 per share

- 2017-02: AUD 1.56 per share

- 2017-03: AUD 2.14 per share

- 2017-04: AUD 2.96 per share

- 2017-05: AUD 1.98 per share

- 2017-06: AUD 1.95 per share

- 2017-07: AUD 1.64 per share

- 2017-08: AUD 1.37 per share

- 2017-09: AUD 1.30 per share

- 2017-10: AUD 1.27 per share

- 2017-11: AUD 1.28 per share

- 2017-12: AUD 1.38 per share

- 2018-01: AUD 1.27 per share

- 2018-02: AUD 1.69 per share

- 2018-03: AUD 1.41 per share

- 2018-04: AUD 1.39 per share

- 2018-05: AUD 1.45 per share

- 2018-06: AUD 1.40 per share

- 2018-07: AUD 1.79 per share

- 2018-08: AUD 1.55 per share

- 2018-09: AUD 2.04 per share

- 2018-10: AUD 1.89 per share

- 2018-11: AUD 1.26 per share

- 2018-12: AUD 1.10 per share

- 2019-01: AUD 1.11 per share

- 2019-02: AUD 1.17 per share

- 2019-03: AUD 1.36 per share

- 2019-04: AUD 1.55 per share

- 2019-05: AUD 1.32 per share

- 2019-06: AUD 1.40 per share

- 2019-07: AUD 1.40 per share

- 2019-08: AUD 1.36 per share

- 2019-09: AUD 2.03 per share

- 2019-10: AUD 1.69 per share

- 2019-11: AUD 1.72 per share

- 2019-12: AUD 1.97 per share

- 2020-01: AUD 2.84 per share

- 2020-02: AUD 2.12 per share

- 2020-03: AUD 1.31 per share

- 2020-04: AUD 3.19 per share

- 2020-05: AUD 3.79 per share

- 2020-06: AUD 3.08 per share

- 2020-07: AUD 3.58 per share

- 2020-08: AUD 5.03 per share

- 2020-09: AUD 4.82 per share

- 2020-10: AUD 2.90 per share

- 2020-11: AUD 3.94 per share

- 2020-12: AUD 2.13 per share

- 2021-01: AUD 2.26 per share

- 2021-02: AUD 2.33 per share

- 2021-03: AUD 2.06 per share

- 2021-04: AUD 1.85 per share

- 2021-05: AUD 1.86 per share

- 2021-06: AUD 1.88 per share

- 2021-07: AUD 1.78 per share

- 2021-08: AUD 1.58 per share

- 2021-09: AUD 1.59 per share

- 2021-10: AUD 1.51 per share

- 2021-11: AUD 1.61 per share

- 2021-12: AUD 1.34 per share

- 2022-01: AUD 1.07 per share

- 2022-02: AUD 1.05 per share

- 2022-03: AUD 1.09 per share

- 2022-04: AUD 1.02 per share

- 2022-05: AUD 0.93 per share

- 2022-06: AUD 0.58 per share

- 2022-07: AUD 0.89 per share

- 2022-08: AUD 0.81 per share

- 2022-09: AUD 0.74 per share

- 2022-10: AUD 0.88 per share

- 2022-11: AUD 1.05 per share

- 2022-12: AUD 0.82 per share

- 2023-01: AUD 0.90 per share

- 2023-02: AUD 0.92 per share

- 2023-03: AUD 0.90 per share

- 2023-04: AUD 0.82 per share

- 2023-05: AUD 0.96 per share

- 2023-06: AUD 1.08 per share

- 2023-07: AUD 1.09 per share

- 2023-08: AUD 0.48 per share

- 2023-09: AUD 0.37 per share

- 2023-10: AUD 0.34 per share

- 2023-11: AUD 0.38 per share

- 2023-12: AUD 0.31 per share

- 2024-01: AUD 0.26 per share

- 2024-02: AUD 0.29 per share

- 2024-03: AUD 0.56 per share

- 2024-04: AUD 0.99 per share

- 2024-05: AUD 1.11 per share

- 2024-06: AUD 0.99 per share

- 2024-07: AUD 1.02 per share

- 2024-08: AUD 1.03 per share

- 2024-09: AUD 1.17 per share

- 2024-10: AUD 1.32 per share

- 2024-11: AUD 1.77 per share

- 2024-12: AUD 3.10 per share

- 2025-01: AUD 3.17 per share

- 2025-02: AUD 2.52 per share

- 2025-03: AUD 1.96 per share

- 2025-04: AUD 1.79 per share

- 2025-05: AUD 1.70 per share

- 2025-06: AUD 1.65 per share

- 2025-07: AUD 2.38 per share

- 2025-08: AUD 2.18 per share

- 2025-09: AUD 2.37 per share

- 2025-10: AUD 2.51 per share

- 2025-11: AUD 2.71 per share

- 2025-12: AUD 2.72 per share

- 2026-01: AUD 2.53 per share

- 2026-02: AUD 2.24 per share

- 2026-03: AUD 2.16 per share

- 2026-04: AUD 2.12 per share

- 2026-05: AUD 2.14 per share

- 2026-06: AUD 1.96 per share

- 2026-07: AUD 2.05 per share

- 2026-08: AUD 2.36 per share

- 2026-09: AUD 2.11 per share

- 2026-10: AUD 2.01 per share

## Annual estimated value (AUD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1345099/000134509926000081/meso-20260630.htm); period 2026-06-30, filed 2026-08-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations