Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $255.30M
• Dividend Yield: N/A
• Average Volume (3M): 118.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: -30.66%
• EPS Growth: 36.48%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.30
• Shares Outstanding: 55,741,370
• 10 Day Avg. Volume: 129,154
• 30 Day Avg. Volume: 118,335
• PEG Ratio: 0.42
• Price to Book (P/B): 2.37K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.38
• Enterprise Value/Market Cap: -0.11
• Enterprise Value/Revenue: -0.27
• Enterprise Value/Gross Profit: -1.23
• Enterprise Value/Ebitda: 0.08
• 1Y Price Target: $8.67
• Price Target Upside: 90.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $4.50 ▼(-0.88%Downside)

Foghorn Therapeutics' overall score is primarily impacted by its financial difficulties and negative valuation metrics. However, positive corporate developments and some short-term technical momentum provide a degree of optimism. Significant improvements in financial performance and stability are necessary for a more favorable outlook.

Positive Factors

Clinical Trial Progress

FHD-909 continues to advance in a Ph1 trial in SMARCA4-mut NSCLC, with promising preclinical data presented.

Combination Therapies

The combination of FHD-909 with pembrolizumab resulted in meaningful tumor regression, highlighting its potential in NSCLC treatment.

Strategic Collaborations

Foghorn continues to progress its strategic collaboration with Lilly for FHD-909, which has been the main focus of investor interest in the company.

Negative Factors

Financial Results

Foghorn reported Q4 collaboration revenue of $3M below the $10M estimate.

Revenue Performance

Foghorn reported Q1 collaboration revenues of $6M, below the $10M estimate.

Foghorn Therapeutics Business Overview & Revenue Model

Company Description

Foghorn Therapeutics (FHTX) is a biopharmaceutical company focused on discovering and developing a new class of medicines targeting the chromatin regulatory system. The company's core products involve novel therapies aimed at treating a variety of serious diseases, including cancer and other conditions driven by dysregulation of the chromatin regulatory system. Foghorn's approach leverages its proprietary Gene Traffic Control product platform to systematically identify and validate chromatin regulatory targets, leading to the development of precision therapies for patients with unmet medical needs.

How the Company Makes Money

Foghorn Therapeutics generates revenue primarily through strategic collaborations, partnerships, and licensing agreements with other pharmaceutical companies. These collaborations often involve joint research and development efforts, where Foghorn provides its expertise in chromatin regulation and drug development, in exchange for upfront payments, milestone payments, and potential royalties on sales of resulting products. Additionally, the company may receive funding from grants and research institutions to support its cutting-edge research initiatives. These partnerships and funding sources are critical to sustaining Foghorn's research and development activities and advancing its pipeline of therapeutic candidates.

Foghorn Therapeutics Financial Statement Overview

Summary

Foghorn Therapeutics is experiencing financial difficulties, with consistent losses and negative equity indicating a precarious financial health. Despite some liquidity support from financing activities, the company faces challenges in revenue generation and high leverage risks.

Income Statement

Foghorn Therapeutics shows a challenging financial situation with a consistent negative net income and EBIT. The gross profit margin is positive due to the absence of cost of goods sold, but the net profit margin remains negative, indicating ongoing losses. Revenue growth is sporadic, with a recent decline in annual revenue, suggesting instability in revenue streams.

Balance Sheet

The company's balance sheet reflects financial distress with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, highlighting significant leverage concerns. Total assets have decreased over time, showing a weakening financial position.

Cash Flow

Foghorn Therapeutics faces cash flow challenges with consistently negative free cash flow and operating cash flow. However, financing activities have provided some liquidity support, as seen in positive financing cash flow. The operating cash flow to net income ratio is not meaningful due to negative values, reflecting ongoing operational cash deficits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.50M	22.60M	34.16M	19.23M	1.32M	430.00K
	Gross Profit
23.50M	22.60M	-75.53M	19.21M	-6.20M	-57.28M
	EBIT
-97.40M	-102.68M	-107.91M	-117.14M	-100.73M	-68.53M
	EBITDA
-91.89M	-97.17M	-104.45M	-113.82M	-96.19M	-66.49M
	Net Income Common Stockholders
-80.44M	-86.62M	-98.43M	-108.87M	-103.23M	-69.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
220.59M	243.75M	234.06M	345.80M	154.29M	185.77M
	Total Assets
258.69M	283.98M	285.92M	404.88M	519.77M	255.59M
	Total Debt
34.85M	37.13M	45.07M	51.51M	58.33M	82.00M
	Net Debt
-26.17M	-18.32M	-35.26M	-294.29M	-42.80M	-10.80M
	Total Liabilities
320.34M	329.51M	363.11M	404.77M	422.90M	109.41M
	Stockholders Equity
-61.65M	-45.53M	-77.19M	112.00K	96.87M	146.19M
Cash Flow		Free Cash Flow
-95.86M	-101.31M	-119.33M	192.40M	-53.56M	-47.47M
	Operating Cash Flow
-95.03M	-100.41M	-118.11M	193.61M	-50.25M	-31.29M
	Investing Cash Flow
-27.60M	-29.90M	144.45M	-244.32M	36.17M	-108.91M
	Financing Cash Flow
104.40M	105.43M	1.78M	1.76M	22.42M	217.47M

Foghorn Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHTX, the sentiment is Neutral. The current price of 4.54 is above the 20-day moving average (MA) of 4.29, above the 50-day MA of 4.09, and below the 200-day MA of 5.83, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 57.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FHTX.

Foghorn Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYEL	55 Neutral	$144.23M	―	-71.20%	―	-4.41%	-38.08%
FHTX	54 Neutral	$255.30M	―	322.49%	―	-30.66%	36.48%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
VYGR	50 Neutral	$199.21M	5.05	-27.61%	―	-43.75%	-8479.41%
CMPS	47 Neutral	$419.67M	―	-60.67%	―	―	3.88%
CRGX	40 Underperform	$206.59M	―	-65.94%	―	―	―

Foghorn Therapeutics Corporate Events

Foghorn Therapeutics Advances FHD-909 Phase 1 Trial

In May 2025, Foghorn Therapeutics provided a financial and corporate update, highlighting the advancement of its FHD-909 Phase 1 trial targeting SMARCA4 mutated cancers, with non-small cell lung cancer as the primary focus. The company also presented promising preclinical data at the AACR Annual Meeting, showcasing the potential of FHD-909 in combination with other cancer therapies. Additionally, Foghorn announced progress in its Selective CBP and EP300 degrader programs, with updates expected in the latter half of 2025. The company maintains a strong financial position with a cash runway into 2027, supporting its ongoing strategic collaboration with Lilly and the development of novel oncology medicines.

The most recent analyst rating on (FHTX) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Foghorn Therapeutics stock, see the FHTX Stock Forecast page.

Foghorn Therapeutics Appoints New Board Members

On April 25, 2025, Foghorn Therapeutics appointed Stuart Duty and Neil J. Gallagher, M.D., Ph.D., to its Board of Directors, effective May 1, 2025. Both directors are recognized as independent under Nasdaq standards. Mr. Duty will serve on the Audit Committee, while Dr. Gallagher will join the Science Committee. Their appointments align with Foghorn’s strategic goals to enhance its pipeline and compliance with Nasdaq’s audit committee requirements. The appointments are expected to leverage their extensive industry experience to advance Foghorn’s clinical and preclinical developments in oncology.

Foghorn Therapeutics Presents Preclinical Data at AACR 2025

On April 28, 2025, Foghorn Therapeutics announced preclinical data for several programs, including their SMARCA2 selective inhibitor FHD-909, at the AACR 2025 Annual Meeting. The company is collaborating with Lilly on the development of FHD-909, which shows potential to improve outcomes for patients with SMARCA4-mutated tumors, particularly in non-small cell lung cancer. This collaboration, initiated in 2021, includes significant financial agreements and aims to address unmet medical needs in cancer treatment.