NasdaqCM:MDGL

Stock Analysis Report

Executive Summary

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases.

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Madrigal Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDGL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

MDGL

0.7%

US Biotechs

-1.4%

US Market


1 Year Return

-3.7%

MDGL

12.9%

US Biotechs

14.5%

US Market

Return vs Industry: MDGL underperformed the US Biotechs industry which returned 12.9% over the past year.

Return vs Market: MDGL underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

MDGLIndustryMarket
7 Day5.3%0.7%-1.4%
30 Day21.1%10.0%1.3%
90 Day19.4%16.4%4.6%
1 Year-3.7%-3.7%13.9%12.9%17.1%14.5%
3 Year622.1%622.1%29.6%25.5%45.1%35.7%
5 Yearn/a6.6%1.5%67.1%48.6%

Price Volatility Vs. Market

How volatile is Madrigal Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Madrigal Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

4.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MDGL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MDGL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MDGL is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: MDGL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MDGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MDGL is overvalued based on its PB Ratio (4.1x) compared to the US Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Madrigal Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDGL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MDGL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MDGL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if MDGL's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MDGL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDGL is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Madrigal Pharmaceuticals performed over the past 5 years?

-38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDGL is currently unprofitable.

Growing Profit Margin: MDGL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDGL is unprofitable, and losses have increased over the past 5 years at a rate of -38.5% per year.

Accelerating Growth: Unable to compare MDGL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MDGL is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: MDGL has a negative Return on Equity (-15.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Madrigal Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: MDGL's short term assets ($455.3M) exceed its short term liabilities ($15.5M).

Long Term Liabilities: MDGL's short term assets ($455.3M) exceed its long term liabilities ($441.0K).


Debt to Equity History and Analysis

Debt Level: MDGL is debt free.

Reducing Debt: MDGL had no debt 5 years ago.


Balance Sheet

Inventory Level: MDGL has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MDGL's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MDGL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: MDGL has sufficient cash runway for 2.987228 years if free cash flow continues to reduce at historical rates of -19.2% each year.


Next Steps

Dividend

What is Madrigal Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MDGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MDGL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MDGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MDGL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MDGL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Madrigal Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Paul Friedman (76yo)

3.4yrs

Tenure

US$5,628,666

Compensation

Dr. Paul A. Friedman, M.D., has been Chairman and Chief Executive Officer of Madrigal Pharmaceuticals, Inc. since July 22, 2016 and served as its President since July 22, 2016. Dr. Friedman served as a Mem ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD5.63M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.4yrs

Average Tenure

66yo

Average Age

Experienced Management: MDGL's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

71yo

Average Age

Experienced Board: MDGL's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9%.


Management Team

  • Marc Schneebaum (65yo)

    Senior VP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$3.37m
  • Paul Friedman (76yo)

    Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: US$5.63m
  • Brian Lynch (58yo)

    Senior VP & General Counsel

    • Tenure: 0.8yrs
  • Becky Taub (67yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$4.34m
  • Tom Hare

    Senior Vice President of Clinical Management

    • Tenure: 0yrs

Board Members

  • Dave Milligan (78yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$2.44m
  • Fred Craves (73yo)

    Lead Director

    • Tenure: 3.4yrs
    • Compensation: US$2.44m
  • Ken Bate (69yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$2.45m
  • Paul Friedman (76yo)

    Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: US$5.63m
  • Keith Gollust (73yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$2.45m
  • Rich Levy (61yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$2.46m
  • Becky Taub (67yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$4.34m
  • Jim Daly (57yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

Madrigal Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Madrigal Pharmaceuticals, Inc.
  • Ticker: MDGL
  • Exchange: NasdaqCM
  • Founded: 2011
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.755b
  • Shares outstanding: 15.43m
  • Website: https://www.madrigalpharma.com

Number of Employees


Location

  • Madrigal Pharmaceuticals, Inc.
  • Four Tower Bridge
  • Suite 400
  • West Conshohocken
  • Pennsylvania
  • 19428
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDGLNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDJul 2016
YDO1DB (Deutsche Boerse AG)YesNew Common StockDEEURJul 2016
0JXILSE (London Stock Exchange)YesNew Common StockGBUSDJul 2016

Biography

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic, and li ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 01:02
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.