Madrigal Pharmaceuticals, Inc.
$488.15
+7.8%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. Its lead product candidate is resmetirom, a liver-directed selective thyroid hormone receptor-ß agonist, which is in Phase III clinical trials for the treatment of non-alcoholic steatohepatitis. The company also develops MGL-3745, a backup compound to resmetirom. It has research, development, and commercialization agreement with Hoffmann-La Roche. Madrigal Pharmaceuticals, Inc. is headquartered in West Conshohocken, Pennsylvania.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -38.0).
Valuation inputs: P/E -38.0, earnings yield N/A, momentum +7.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -47.8%, ROIC -31.6%).
Profitability stack: net margin -30.1%, ROE -47.8%, ROIC -31.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +52.2%, momentum +7.8%, net margin -30.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Madrigal Pharmaceuticals, Inc. Market vs Earnings Trajectory
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Madrigal Pharmaceuticals, Inc. Fair Value Envelope
Madrigal Pharmaceuticals, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Madrigal Pharmaceuticals, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Madrigal Pharmaceuticals, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Madrigal Pharmaceuticals, Inc. Street Expectations Map
Wall Street analysts project that MDGL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 731.25, with estimates ranging from a low of 571.00 to a high of 964.00.
The consensus 1-year price target stands at 731.25, with estimates ranging from a low of 571.00 to a high of 964.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Madrigal Pharmaceuticals, Inc. Insider Positioning
During the last 12 months, insiders have purchased $245K and sold $13.11M worth of MDGL shares, resulting in $12.86M of net selling activity.
3 Months
0
0.00
2.6K
1.25M
-1.3M
-$1.25M
3-6 Months
0
0.00
2.7K
1.30M
-1.3M
-$1.30M
6-9 Months
0
0.00
11.0K
5.34M
-5.3M
-$5.34M
9-12 Months
657
245.24K
14.3K
5.22M
-5.0M
-$4.98M
Top Buyers
Baker Bros. Advisors Lp
Director
$245K
Top Sellers
Sibold William John
Director, Officer: President And Ceo
$5.08M
Friedman Paul A
Director
$3.54M
Taub Rebecca
Director
$1.38M
Dier Mardi
Officer: Evp And Cfo
$967K
Soergel David
Officer: Chief Medical Officer
$952K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $12.86M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
MDGL has not reported any dividend yield values in the available annual periods.
mdgl Dividend History
Learning Layer
Related Guides
Build conviction on MDGL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.