Is Madrigal Pharmaceuticals Stock a Good Investment?
Madrigal Pharmaceuticals Investment Advice | MDGL |
- Examine Madrigal Pharmaceuticals' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Madrigal Pharmaceuticals' leadership team and their track record. Good management can help Madrigal Pharmaceuticals navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact Madrigal Pharmaceuticals' business and its evolving consumer preferences.
- Compare Madrigal Pharmaceuticals' performance and market position to its competitors. Analyze how Madrigal Pharmaceuticals is positioned in terms of product offerings, innovation, and market share.
- Check if Madrigal Pharmaceuticals pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Madrigal Pharmaceuticals' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Madrigal Pharmaceuticals stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Madrigal Pharmaceuticals is a good investment.
Sell | Buy |
Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Madrigal Pharmaceuticals Stock
Researching Madrigal Pharmaceuticals' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 21.9. Madrigal Pharmaceuticals last dividend was issued on the 25th of July 2016. The entity had 1:35 split on the 25th of July 2016.
To determine if Madrigal Pharmaceuticals is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Madrigal Pharmaceuticals' research are outlined below:
| Madrigal Pharmaceuticals had very high historical volatility over the last 90 days | |
| The company reported the previous year's revenue of 180.13 M. Net Loss for the year was (465.89 M) with profit before overhead, payroll, taxes, and interest of 173.9 M. | |
| Madrigal Pharmaceuticals currently holds about 211.77 M in cash with (455.57 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 12.38. | |
| Madrigal Pharmaceuticals has a frail financial position based on the latest SEC disclosures | |
| Over 91.0% of the company shares are owned by institutional investors | |
| Latest headline from simplywall.st: Analysts Expect Breakeven For Madrigal Pharmaceuticals, Inc. Before Long |
Madrigal Pharmaceuticals uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Madrigal Pharmaceuticals. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Madrigal Pharmaceuticals' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Madrigal Pharmaceuticals' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Madrigal Pharmaceuticals' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-08-10 | 2017-06-30 | -0.6 | -0.69 | -0.09 | 15 | ||
2017-11-09 | 2017-09-30 | -0.79 | -0.68 | 0.11 | 13 | ||
2018-08-07 | 2018-06-30 | -0.63 | -0.45 | 0.18 | 28 | ||
2018-05-08 | 2018-03-31 | -0.78 | -0.45 | 0.33 | 42 | ||
2017-05-11 | 2017-03-31 | -0.87 | -0.5 | 0.37 | 42 | ||
2020-05-07 | 2020-03-31 | -1.94 | -2.34 | -0.4 | 20 | ||
2022-08-04 | 2022-06-30 | -3.7 | -4.14 | -0.44 | 11 | ||
2020-11-05 | 2020-09-30 | -3.3 | -3.75 | -0.45 | 13 |
Madrigal Pharmaceuticals Target Price Consensus
Madrigal target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Madrigal Pharmaceuticals' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 16 | Strong Buy |
Most Madrigal analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Madrigal stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Madrigal Pharmaceuticals, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMadrigal Pharmaceuticals Target Price Projection
Madrigal Pharmaceuticals' current and average target prices are 333.82 and 373.00, respectively. The current price of Madrigal Pharmaceuticals is the price at which Madrigal Pharmaceuticals is currently trading. On the other hand, Madrigal Pharmaceuticals' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Madrigal Pharmaceuticals Market Quote on 26th of March 2025
Target Price
Analyst Consensus On Madrigal Pharmaceuticals Target Price
Madrigal Pharmaceuticals Analyst Ratings
Madrigal Pharmaceuticals' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Madrigal Pharmaceuticals stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Madrigal Pharmaceuticals' financials, market performance, and future outlook by experienced professionals. Madrigal Pharmaceuticals' historical ratings below, therefore, can serve as a valuable tool for investors.Know Madrigal Pharmaceuticals' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Madrigal Pharmaceuticals is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Madrigal Pharmaceuticals backward and forwards among themselves. Madrigal Pharmaceuticals' institutional investor refers to the entity that pools money to purchase Madrigal Pharmaceuticals' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | William Blair Investment Management, Llc | 2024-12-31 | 371.8 K | Ubs Group Ag | 2024-12-31 | 325.3 K | Woodline Partners Lp | 2024-12-31 | 309.1 K | Rock Springs Capital Management Lp | 2024-12-31 | 265.2 K | Goldman Sachs Group Inc | 2024-12-31 | 231.4 K | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 218.5 K | Bank Of America Corp | 2024-12-31 | 217.8 K | Pictet Asset Manangement Sa | 2024-12-31 | 208.5 K | Artisan Partners Limited Partnership | 2024-12-31 | 207.5 K | Hhg Plc | 2024-12-31 | 2.2 M | Paulson & Company Inc | 2024-12-31 | 2 M |
Madrigal Pharmaceuticals' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 7.65 B.Market Cap |
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Madrigal Pharmaceuticals' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.45) | (0.47) | |
| Return On Capital Employed | (0.57) | (0.60) | |
| Return On Assets | (0.45) | (0.47) | |
| Return On Equity | (0.62) | (0.59) |
Determining Madrigal Pharmaceuticals' profitability involves analyzing its financial statements and using various financial metrics to determine if Madrigal Pharmaceuticals is a good buy. For example, gross profit margin measures Madrigal Pharmaceuticals' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Madrigal Pharmaceuticals' profitability and make more informed investment decisions.
Evaluate Madrigal Pharmaceuticals' management efficiency
Madrigal Pharmaceuticals has return on total asset (ROA) of (0.3698) % which means that it has lost $0.3698 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.8035) %, meaning that it created substantial loss on money invested by shareholders. Madrigal Pharmaceuticals' management efficiency ratios could be used to measure how well Madrigal Pharmaceuticals manages its routine affairs as well as how well it operates its assets and liabilities. The value of Return On Tangible Assets is estimated to slide to -0.47. The value of Return On Capital Employed is expected to slide to -0.6. At this time, Madrigal Pharmaceuticals' Fixed Asset Turnover is quite stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 35.46 | 49.87 | |
| Tangible Book Value Per Share | 35.24 | 49.86 | |
| Enterprise Value Over EBITDA | (14.36) | (15.08) | |
| Price Book Value Ratio | 8.70 | 9.14 | |
| Enterprise Value Multiple | (14.36) | (15.08) | |
| Price Fair Value | 8.70 | 9.14 | |
| Enterprise Value | 6.5 B | 6.8 B |
At Madrigal Pharmaceuticals, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Beta (0.41) |
Basic technical analysis of Madrigal Stock
As of the 26th of March, Madrigal Pharmaceuticals secures the Risk Adjusted Performance of 0.0603, downside deviation of 4.2, and Mean Deviation of 2.98. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Madrigal Pharmaceuticals, as well as the relationship between them. Please verify Madrigal Pharmaceuticals treynor ratio, and the relationship between the standard deviation and downside variance to decide if Madrigal Pharmaceuticals is priced some-what accurately, providing market reflects its recent price of 333.82 per share. Given that Madrigal Pharmaceuticals has jensen alpha of 0.2463, we recommend you to check Madrigal Pharmaceuticals's last-minute market performance to make sure the company can sustain itself at a future point.Madrigal Pharmaceuticals' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Madrigal Pharmaceuticals insiders, such as employees or executives, is commonly permitted as long as it does not rely on Madrigal Pharmaceuticals' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Madrigal Pharmaceuticals insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Madrigal Pharmaceuticals' Outstanding Corporate Bonds
Madrigal Pharmaceuticals issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Madrigal Pharmaceuticals uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Madrigal bonds can be classified according to their maturity, which is the date when Madrigal Pharmaceuticals has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Madrigal Pharmaceuticals' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Madrigal Pharmaceuticals' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0603 | |||
| Market Risk Adjusted Performance | 0.22 | |||
| Mean Deviation | 2.98 | |||
| Semi Deviation | 3.96 | |||
| Downside Deviation | 4.2 | |||
| Coefficient Of Variation | 1612.13 | |||
| Standard Deviation | 4.19 | |||
| Variance | 17.52 | |||
| Information Ratio | 0.059 | |||
| Jensen Alpha | 0.2463 | |||
| Total Risk Alpha | 0.2357 | |||
| Sortino Ratio | 0.0587 | |||
| Treynor Ratio | 0.21 | |||
| Maximum Drawdown | 23.14 | |||
| Value At Risk | (5.66) | |||
| Potential Upside | 7.64 | |||
| Downside Variance | 17.65 | |||
| Semi Variance | 15.68 | |||
| Expected Short fall | (2.99) | |||
| Skewness | 0.3054 | |||
| Kurtosis | 2.04 |
| Risk Adjusted Performance | 0.0603 | |||
| Market Risk Adjusted Performance | 0.22 | |||
| Mean Deviation | 2.98 | |||
| Semi Deviation | 3.96 | |||
| Downside Deviation | 4.2 | |||
| Coefficient Of Variation | 1612.13 | |||
| Standard Deviation | 4.19 | |||
| Variance | 17.52 | |||
| Information Ratio | 0.059 | |||
| Jensen Alpha | 0.2463 | |||
| Total Risk Alpha | 0.2357 | |||
| Sortino Ratio | 0.0587 | |||
| Treynor Ratio | 0.21 | |||
| Maximum Drawdown | 23.14 | |||
| Value At Risk | (5.66) | |||
| Potential Upside | 7.64 | |||
| Downside Variance | 17.65 | |||
| Semi Variance | 15.68 | |||
| Expected Short fall | (2.99) | |||
| Skewness | 0.3054 | |||
| Kurtosis | 2.04 |
Consider Madrigal Pharmaceuticals' intraday indicators
Madrigal Pharmaceuticals intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Madrigal Pharmaceuticals stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 11155.01 | |||
| Daily Balance Of Power | (0.75) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 337.07 | |||
| Day Typical Price | 335.99 | |||
| Price Action Indicator | (7.99) | |||
| Period Momentum Indicator | (9.47) | |||
| Relative Strength Index | 48.7 |
Madrigal Pharmaceuticals Corporate Filings
F4 | 14th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 12th of March 2025 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
8K | 11th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 14th of February 2025 Other Reports | ViewVerify |
Madrigal Stock media impact
Far too much social signal, news, headlines, and media speculation about Madrigal Pharmaceuticals that are available to investors today. That information is available publicly through Madrigal media outlets and privately through word of mouth or via Madrigal internal channels. However, regardless of the origin, that massive amount of Madrigal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Madrigal Pharmaceuticals news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Madrigal Pharmaceuticals relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Madrigal Pharmaceuticals' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Madrigal Pharmaceuticals alpha.
Madrigal Pharmaceuticals Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Madrigal Pharmaceuticals can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Madrigal Pharmaceuticals Historical Investor Sentiment
Investor biases related to Madrigal Pharmaceuticals' public news can be used to forecast risks associated with an investment in Madrigal. The trend in average sentiment can be used to explain how an investor holding Madrigal can time the market purely based on public headlines and social activities around Madrigal Pharmaceuticals. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Madrigal Pharmaceuticals' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Madrigal Pharmaceuticals and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Madrigal Pharmaceuticals news discussions. The higher the estimate score, the more favorable the investor's outlook on Madrigal Pharmaceuticals.
Madrigal Pharmaceuticals Corporate Management
| Justin Drinkwine | Senior VP | Profile | |
| Thomas Hare | Senior Management | Profile | |
| Remy Sukhija | VP Officer | Profile | |
| PharmD MBA | Senior Affairs | Profile | |
| Mark Underwood | Senior Operations | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Madrigal Pharmaceuticals. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. For more information on how to buy Madrigal Stock please use our How to buy in Madrigal Stock guide.You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Madrigal Pharmaceuticals. If investors know Madrigal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Madrigal Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Madrigal Pharmaceuticals is measured differently than its book value, which is the value of Madrigal that is recorded on the company's balance sheet. Investors also form their own opinion of Madrigal Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Madrigal Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Madrigal Pharmaceuticals' market value can be influenced by many factors that don't directly affect Madrigal Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Madrigal Pharmaceuticals' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Madrigal Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Madrigal Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.