Madrigal Pharmaceuticals (MDGL) AI Stock Analysis

• Market Cap: $9.51B
• Dividend Yield: N/A
• Average Volume (3M): 380.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 3421.98%
• EPS Growth: 49.62%
• Country: US
• Employees: 528
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.90
• Shares Outstanding: 22,289,015
• 10 Day Avg. Volume: 311,882
• 30 Day Avg. Volume: 380,971
• PEG Ratio: -1.47
• Price to Book (P/B): 8.70
• Price to Sales (P/S): 36.44
• P/FCF Ratio: -14.36
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 11.72
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: -22.65
• 1Y Price Target: $476.67
• Price Target Upside: 12.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 56 Neutral
• Price Target: ―

Madrigal Pharmaceuticals presents a mixed investment case. Strong revenue growth and a successful product launch boost its appeal, but profitability remains a challenge due to high operational costs. The stable balance sheet offers some reassurance, though ongoing cash burn and external financing reliance are risks. Technical indicators suggest a neutral stance with potential for growth, while the valuation reflects the high-risk nature typical of biotech firms.

Positive Factors

Product Launch Success

The successful launch of Rezdiffra with significant sales and patient adoption underscores Madrigal's ability to penetrate the market effectively, indicating strong future revenue potential.

Regulatory Approval

Securing conditional marketing authorization in Europe opens a significant new market, potentially boosting revenue and enhancing Madrigal's competitive position in the MASH treatment space.

Strong Financial Position

A robust cash position provides Madrigal with the financial flexibility to support ongoing R&D, commercial efforts, and potential European expansion without immediate reliance on external financing.

Negative Factors

Profitability Challenges

Continued losses and high operational costs relative to revenue highlight the difficulty in achieving profitability, which may affect long-term financial sustainability and investor confidence.

Increased Operational Expenses

Rising SG&A expenses due to commercial launch activities and headcount increases could pressure margins and delay the path to profitability, impacting cash flow and financial health.

Uncertainty in European Strategy

Uncertainties in the European market strategy could hinder effective market penetration and revenue growth, posing risks to the company's expansion plans and overall market success.

Madrigal Pharmaceuticals Business Overview & Revenue Model

Company Description

Madrigal Pharmaceuticals, Inc. (MDGL) is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of cardiovascular, metabolic, and liver diseases. The company's lead product candidate, resmetirom, is being evaluated for its potential to treat non-alcoholic steatohepatitis (NASH), a progressive liver disease. Madrigal Pharmaceuticals operates predominantly in the biotechnology and pharmaceuticals sector, leveraging cutting-edge research and development to address significant unmet medical needs.

How the Company Makes Money

Madrigal Pharmaceuticals primarily makes money through the development and commercialization of its proprietary drug candidates. The company aims to generate revenue by advancing its lead compound, resmetirom, through clinical trials and obtaining regulatory approval for commercialization. Once approved, Madrigal would earn revenue through product sales, potentially entering into licensing agreements or partnerships with larger pharmaceutical companies to expand market reach and distribution. The company's financial success is also supported by strategic collaborations and partnerships that may provide upfront payments, milestone payments, and royalties. Madrigal's revenue model is highly dependent on the successful clinical development and regulatory approval of its drug candidates.

Madrigal Pharmaceuticals Financial Statement Overview

Summary

Madrigal Pharmaceuticals is experiencing significant revenue growth with the introduction of Rezdiffra, but profitability remains a challenge due to negative EBIT and net income margins. The balance sheet is strong with low leverage, yet ongoing cash burn due to negative free cash flow and reliance on external financing are concerns.

Income Statement

Madrigal Pharmaceuticals is experiencing significant revenue growth, as evidenced by the jump from zero revenue in prior years to $317 million in TTM. However, the company is not yet profitable, with negative EBIT and net income margins. This indicates high operational costs relative to revenue, which is a common challenge in the biotechnology industry during the R&D phase.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio, highlighting financial stability. The equity ratio is healthy, reflecting a solid asset base funded by stockholders' equity. However, continuous losses can erode this stability over time.

Cash Flow

Cash flow analysis indicates negative free cash flow, which is typical for biotech firms focusing on research and development. The operating cash flow remains negative, suggesting ongoing cash burn. While financing activities have been a source of cash, reliance on external funding can be a concern if not managed properly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	515.55M	180.13M	0.00	0.00	0.00	0.00
Gross Profit	494.95M	172.80M	-527.00K	-467.00K	-405.00K	-471.00K
EBITDA	-266.74M	-450.13M	-360.39M	-290.92M	-241.44M	-201.77M
Net Income	-281.90M	-465.89M	-373.63M	-295.35M	-241.85M	-202.24M
Balance Sheet
Total Assets	1.02B	1.04B	640.55M	362.57M	273.33M	287.00M
Cash, Cash Equivalents and Short-Term Investments	802.02M	926.25M	634.13M	358.77M	270.35M	284.15M
Total Debt	123.95M	119.57M	117.19M	49.89M	797.00K	786.00K
Total Liabilities	319.40M	287.86M	235.21M	165.18M	77.22M	47.02M
Stockholders Equity	695.98M	754.38M	405.33M	197.39M	196.11M	239.97M
Cash Flow
Free Cash Flow	-308.39M	-457.03M	-325.71M	-225.07M	-184.13M	-157.90M
Operating Cash Flow	-307.41M	-455.57M	-324.23M	-224.86M	-183.92M	-157.56M
Investing Cash Flow	-38.60M	-274.39M	-502.52M	206.69M	-5.05M	159.78M
Financing Cash Flow	37.61M	735.06M	595.12M	313.45M	171.24M	5.09M

Madrigal Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 424.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDGL, the sentiment is Neutral. The current price of 424.23 is below the 20-day moving average (MA) of 434.29, above the 50-day MA of 384.72, and above the 200-day MA of 330.45, indicating a neutral trend. The MACD of 10.60 indicates Positive momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 25.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MDGL.

Madrigal Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	79 Outperform	8.63B	16.85	167.48%	―	34.97%	71.10%
CORT	76 Outperform	8.84B	74.64	20.84%	―	25.71%	4.48%
ROIV	61 Neutral	10.36B	-21.71	-11.29%	―	-85.32%	-111.82%
BBIO	58 Neutral	9.57B	-12.23	43.43%	―	7.62%	-55.29%
MDGL	56 Neutral	$9.51B	―	-36.30%	―	3421.98%	49.62%
RVMD	52 Neutral	8.21B	-9.75	―	―	-100.00%	-23.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Madrigal Pharmaceuticals Corporate Events

Madrigal Pharmaceuticals Announces Leadership Transition

On April 16, 2025, Madrigal Pharmaceuticals announced that Dr. Rebecca Taub will transition from her role as Chief Medical Officer and President of Research and Development to a Senior Scientific and Medical Advisor role effective April 21, 2025. Dr. Taub will continue to support the company’s metabolic dysfunction-associated steatohepatitis programs and remain on the Board of Directors. She will receive her 2025 base salary and be eligible for a performance-based bonus. Additionally, Dr. Taub entered into a Severance and Change of Control Agreement, entitling her to severance benefits under certain conditions, including a continuation of her salary and health benefits, should her employment be terminated without cause or for good reason.

Spark’s Take on MDGL Stock

According to Spark, TipRanks’ AI Analyst, MDGL is a Neutral.

Madrigal Pharmaceuticals’ overall score reflects significant challenges in profitability and cash flow generation, offset by strong product launch and positive technical indicators. The company’s strategic progress and strong financial position are promising, but valuation concerns remain due to ongoing losses.

To see Spark’s full report on MDGL stock, click here.

Madrigal Pharmaceuticals Expands Board with New Appointment

On March 9, 2025, Fred Craves announced his resignation from Madrigal Pharmaceuticals’ Board of Directors, effective July 1, 2025, without any disagreements with the company. Subsequently, the Board expanded to include Jackie Fouse, Ph.D., an experienced biotech executive, who will serve on the Audit and Nominating and Governance Committees. This change reflects Madrigal’s commitment to leadership in the MASH sector, with plans to drive the launch of Rezdiffra, expand geographically, and advance their clinical program.