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

Fundamentals

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


Market Performance


7 Day Return

-1.9%

MDGL

0.8%

US Biotechs

1.0%

US Market


1 Year Return

-53.9%

MDGL

-8.3%

US Biotechs

6.7%

US Market

Return vs Industry: MDGL underperformed the US Biotechs industry which returned -8.3% over the past year.

Return vs Market: MDGL underperformed the US Market which returned 6.7% over the past year.


Share holder returns

MDGLIndustryMarket
7 Day-1.9%0.8%1.0%
30 Day-8.0%-3.9%-1.8%
90 Day-11.1%-3.5%-1.8%
1 Year-53.9%-53.9%-7.5%-8.3%9.1%6.7%
3 Year456.7%456.7%13.6%9.6%46.1%36.6%
5 Yearn/a3.3%-1.7%66.9%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 based on future cash flows and its price relative to the stock market?

2.94x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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 Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: MDGL is overvalued based on its PB Ratio (2.9x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

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

44.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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 Estimates


Future Return on Equity

High 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?

-36.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MDGL is unprofitable, and losses have increased over the past 5 years at a rate of -36.6% 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 (78.4%).


Return on Equity

High ROE: MDGL has a negative Return on Equity (-11.98%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MDGL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MDGL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Madrigal Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: MDGL's short term assets ($468.8M) exceeds its short term liabilities ($12.3M)

Long Term Liabilities: MDGL's short term assets (468.8M) exceeds its long term liabilities (520.0K)


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: MDGL's debt is not covered by short term assets (assets are -4.2224399026336E+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 2.930955 years if free cash flow continues to reduce at historical rates of -24.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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?

3.3yrs

Average management tenure


CEO

Paul Friedman (76yo)

3.3yrs

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: Insufficient data to establish whether Paul's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

3.3yrs

Average Tenure

66yo

Average Age

Experienced Management: MDGL's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

71yo

Average Age

Experienced Board: MDGL's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

BuyUS$471,52024 Nov 18
Paul Friedman
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceUS$117.88
BuyUS$496,00019 Nov 18
Paul Friedman
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceUS$124.00
BuyUS$249,38719 Nov 18
Frederick Craves
EntityIndividual
Role
Lead Director
Lead Director
Shares2,000
Max PriceUS$125.00

Ownership Breakdown


Management Team

  • Marc Schneebaum (65yo)

    Senior VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$3.37m
  • Paul Friedman (76yo)

    Chairman & CEO

    • Tenure: 3.3yrs
    • Compensation: US$5.63m
  • Brian Lynch (58yo)

    Senior VP & General Counsel

    • Tenure: 0.7yrs
  • Becky Taub (67yo)

    Founder

    • Tenure: 8.1yrs
    • Compensation: US$4.34m
  • Tom Hare

    Senior Vice President of Clinical Management

    • Tenure: 0yrs

Board Members

  • Dave Milligan (78yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$2.44m
  • Fred Craves (73yo)

    Lead Director

    • Tenure: 3.3yrs
    • Compensation: US$2.44m
  • Ken Bate (69yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$2.45m
  • Paul Friedman (76yo)

    Chairman & CEO

    • Tenure: 3.3yrs
    • Compensation: US$5.63m
  • Keith Gollust (73yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$2.45m
  • Rich Levy (61yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$2.46m
  • Becky Taub (67yo)

    Founder

    • Tenure: 8.1yrs
    • Compensation: US$4.34m
  • Jim Daly (57yo)

    Independent Director

    • Tenure: 0.3yrs

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$1.344b
  • 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 Analysis2019/10/14 03:27
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)