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.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

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

-1.0%

MDGL

5.3%

US Biotechs

12.5%

US Market


1 Year Return

-47.4%

MDGL

-0.7%

US Biotechs

-12.7%

US Market

Return vs Industry: MDGL underperformed the US Biotechs industry which returned -0.7% over the past year.

Return vs Market: MDGL underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

MDGLIndustryMarket
7 Day-1.0%5.3%12.5%
30 Day-20.2%-6.6%-14.7%
90 Day-24.6%-8.3%-21.5%
1 Year-47.4%-47.4%0.1%-0.7%-10.9%-12.7%
3 Year354.9%354.9%10.3%7.5%12.6%5.4%
5 Yearn/a-6.1%-10.3%31.9%17.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDGL ($68.73) is trading below our estimate of fair value ($591.24)

Significantly Below Fair Value: MDGL is trading below fair value by more than 20%.


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 (2.5x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Madrigal Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

53.0%

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?

-40.7%

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 -40.7% 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 (22%).


Return on Equity

High ROE: MDGL has a negative Return on Equity (-20.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Madrigal Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: MDGL's short term assets ($440.2M) exceed its short term liabilities ($25.1M).

Long Term Liabilities: MDGL's short term assets ($440.2M) exceed its long term liabilities ($361.0K).


Debt to Equity History and Analysis

Debt Level: MDGL is debt free.

Reducing Debt: MDGL currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

Debt Coverage by Assets: MDGL's debt is covered by short term assets (assets are 3.9649420903391E+18x debt).


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 more than 3 years if free cash flow continues to reduce at historical rates of -36.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Paul Friedman (76yo)

3.67s

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 ($USD5.63M) is above average for companies of similar size in the US market ($USD3.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Friedman
Chairman & CEO3.67yrsUS$5.63m1.05% $11.1m
Rebecca Taub
Founder8.5yrsUS$4.34m2.82% $29.9m
Marc Schneebaum
Senior VP & CFO3.67yrsUS$3.37m0.12% $1.3m
Brian Lynch
Senior VP & General Counsel1yrno data0.0034% $36.5k
Thomas Hare
Senior Vice President of Clinical Managementno datano datano data

3.7yrs

Average Tenure

66yo

Average Age

Experienced Management: MDGL's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Friedman
Chairman & CEO3.67yrsUS$5.63m1.05% $11.1m
Rebecca Taub
Founder8.5yrsUS$4.34m2.82% $29.9m
David Milligan
Independent Director3.67yrsUS$2.44mno data
Frederick Craves
Lead Director3.67yrsUS$2.44m1.92% $20.3m
Kenneth Bate
Independent Director3.67yrsUS$2.45mno data
Keith Gollust
Independent Director3.67yrsUS$2.45m0.11% $1.1m
Richard Levy
Independent Director3.58yrsUS$2.46m0.059% $625.5k
James Daly
Independent Director0.75yrno datano data

3.7yrs

Average Tenure

71yo

Average Age

Experienced Board: MDGL's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

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$1.060b
  • 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 liver diseases. The company’s lead candidate is MGL-3196, an orally administered, small-molecule, liver-directed, thyroid hormone receptor (THR) ß-selective agonist, which is in Phase II clinical trials for the treatment of non-alcoholic steatohepatitis and heterozygous familial hypercholesterolemia. It is also developing MGL-3745, a THR-ß-selective small molecule that is in preclinical trials. The company has research, development, and commercialization agreement with Hoffmann-La Roche to develop, use, sell, offer for sale, and import various licensed products. Madrigal Pharmaceuticals, Inc. was founded in 2011 and is headquartered in West Conshohocken, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 03:15
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.