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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2549
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$10.2B
Paul A. Friedman
Madrigal Pharmaceuticals, Inc. 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.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$MDGL MADRIGAL PHARMACEUTICALS, INC. | 47 | 50 | 49 | 53 | - | - | -55.9% | -26.7% | 96.7% | -76.7% | -71.3% | 1862.5% | 0.0% | 56.0x | $10.2B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
MADRIGAL PHARMACEUTICALS, INC. (MDGL) receives a "Reduce" rating with a composite score of 46.6/100. It ranks #2549 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Paul A. Friedman
Chief Executive Officer
Labor Force
90
50
22
67
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for MDGL
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for MDGL.
View All RatingsHigh margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 50 | 33 | +17ALPHA |
| MOMENTUM | 53 | 43 | +10ALPHA |
| VALUATION | 49 | 28 | +21ALPHA |
| INVESTMENT | 22 | 4 | +18ALPHA |
| STABILITY | 67 | 60 | +7ALPHA |
| SHORT INT | 19 | 4 | +15ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -536.5% vs WACC 9.5% (spread -546.0%)
GM 97% vs sector 43%, OM -77% vs sector 1%
Capital turnover 21.69x
Rev growth 1862%, 10yr history
Interest coverage -29.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
MADRIGAL PHARMACEUTICALS, INC. receives a Reduce rating from our analysis, with a composite score of 46.6/100 and 2 out of 5 stars, ranking #2549 out of 7,333 stocks. MDGL's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 50/100, MDGL shows adequate but unremarkable business quality. The company reports a return on equity of -55.9% (sector avg: -2.5%), gross margins of 96.7% (sector avg: 42.5%), net margins of -71.3% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 49/100, MDGL appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 16.39x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
MADRIGAL PHARMACEUTICALS, INC.'s investment score of 22/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 1862.5% vs. a sector average of 5.9% and a return on assets of -26.7% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
MDGL demonstrates moderate momentum with a score of 53/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 1862.5% year-over-year, while a beta of 0.76 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
MDGL shows good financial stability with a score of 67/100. Key stability metrics include a beta of 0.76 and a debt-to-equity ratio of 56.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
MADRIGAL PHARMACEUTICALS, INC.'s short interest score of 19/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 56.00x). At $10.2B (large-cap), MDGL carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
MADRIGAL PHARMACEUTICALS, INC. is a large-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2549 of 7,333 overall (65th percentile). Key comparisons include ROE of -55.9% trailing the -2.5% sector median and operating margins of -76.7% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While MDGL currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Short Int. (19) would have the largest impact on the composite score.
ROE 2152% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 128% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 6044% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate MADRIGAL PHARMACEUTICALS, INC. (MDGL) as a Reduce with a composite score of 46.6/100 at a current price of $440.97. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (67th percentile) and momentum (53th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (22th percentile) and value (49th percentile) tempers our overall conviction. We assign a No Moat rating (29/100), Medium uncertainty, and Poor capital allocation.
Key items to watch: sustainability of the current growth rate; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
MADRIGAL PHARMACEUTICALS, INC. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 46.6/100 places it at rank #2549 in our full 7,333-stock universe. With a $10.2B market capitalization, MADRIGAL PHARMACEUTICALS, INC. operates at meaningful scale within the Manufacturing sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 1862%, though momentum at the 53th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 97% (+54.2pp vs sector) narrow to operating margins of -77% (-78.0pp vs sector) and net margins of -71.3%, yielding a gross-to-net conversion rate of -74%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $440.97, MADRIGAL PHARMACEUTICALS, INC. is trading near fair value based on current fundamentals. Our value factor score of 49/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at P/B of 16.4x, P/S of 14.1x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Gross margins of 97% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Revenue growth of 1862% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
The Reduce rating (composite 46.6/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -71.3% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
We assign a Medium uncertainty rating to MADRIGAL PHARMACEUTICALS, INC.. The stock presents a balanced risk profile: current negative profitability (net margin -71.3%) and the combination of leverage (56% D/E) and thin margins (-71.3% net) amplifies downside risk. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: current negative profitability (net margin -71.3%); the combination of leverage (56% D/E) and thin margins (-71.3% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 67th percentile and quality factor at the 50th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 97% provide a buffer against cost pressures; above-average stability (67th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate MADRIGAL PHARMACEUTICALS, INC.'s capital allocation as Poor. Key concerns include low returns on equity (-55.9%), negative profitability, weak asset returns (ROA -26.7%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — MADRIGAL PHARMACEUTICALS, INC. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, MADRIGAL PHARMACEUTICALS, INC. receives a Reduce rating with a composite score of 46.6/100 (rank #2549 of 7,333). Our quantitative framework assigns a No Moat (29/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 48/100.
Our analysis does not support a constructive view on MADRIGAL PHARMACEUTICALS, INC. at this time. The combination of limited competitive advantages, medium uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign MADRIGAL PHARMACEUTICALS, INC. a meaningful economic moat, scoring 29/100 on our composite assessment. The ROIC-WACC spread of -546.0% is the primary signal of economic value creation. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, margin superiority, reached only 10.4/20.
The strongest moat sources are margin superiority (10.4/20) and growth durability (7.4/20). GM 97% vs sector 43%, OM -77% vs sector 1%. Rev growth 1862%, 10yr history. These pillars form the core of MADRIGAL PHARMACEUTICALS, INC.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (0.1/20) and financial resilience (5/20). ROIC -536.5% vs WACC 9.5% (spread -546.0%). Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect MADRIGAL PHARMACEUTICALS, INC.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 97% providing a solid profitability foundation, robust top-line growth of 1862% expanding the revenue base. The margin cascade from 97% gross to -77% operating to -71.3% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 50th percentile.
The margin profile shows gross margins of 97%, operating margins of -77%, net margins of -71.3%. Return metrics include ROE of -55.9% and ROA of -26.7%. Relative to the Manufacturing sector, gross margins are 54.2 percentage points above the sector median of 43%, and ROE of -55.9% compares to a sector median of -2.5%.
The balance sheet reflects moderate leverage with D/E of 56%, revenue growth of 1862%. The sector median D/E is 0%, putting MADRIGAL PHARMACEUTICALS, INC. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
CONSHOHOCKEN, Pa., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Madrigal Pharmaceuticals, Inc. (Nasdaq: MDGL) today announced that the company will participate in the TD Cowen 46th Annual Health Care Conference on Tuesday, March 3, 2026 at 2:30 P.M. ET. The presentation will be webcast live and may be accessed here or by visiting Madrigal’s Investor Relations Events page. A replay of the webcast will be available after the event. About Madrigal PharmaceuticalsMadrigal Pharmaceuticals, Inc. (Nasdaq: MDGL) i
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) Q4 2025 Earnings Call Transcript February 19, 2026Madrigal Pharmaceuticals, Inc. misses on earnings expectations.
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