Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $298.48M
• Dividend Yield: N/A
• Average Volume (3M): 99.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -31.30%
• EPS Growth: 36.26%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 56,529,970
• 10 Day Avg. Volume: 90,322
• 30 Day Avg. Volume: 99,538
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: -1.40
• 1Y Price Target: $8.50
• Price Target Upside: 57.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $5.00 ▼(-7.24% Downside)

Foghorn Therapeutics' overall score reflects its challenging financial position, with persistent losses and high leverage. However, strategic collaborations and a strong cash runway provide potential for future growth. Technical indicators suggest short-term stability, but valuation remains a concern due to ongoing losses.

Positive Factors

Financial Stability

$221M cash maintains runway into 2027, providing financial stability for continued development.

Precision Medicine

FHD-909 is gaining traction as a precision medicine targeting SMARCA4-mutated cancers, which includes up to 10% of NSCLC and ~5% of all solid tumors.

Negative Factors

Financial Performance

Foghorn reported Q2 collaboration revenues of $7.6M 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 faces significant financial challenges, including persistent losses, high leverage, and negative equity. Despite slight revenue growth, the company struggles with profitability and cash flow issues, which are critical for long-term viability in the capital-intensive biotechnology industry.

Income Statement

Foghorn Therapeutics shows a challenging financial performance with consistent net losses and negative profit margins. The TTM data reveals a slight revenue growth of 2.85%, but the company struggles with profitability, as indicated by negative EBIT and EBITDA margins. The gross profit margin is positive, suggesting some efficiency in managing production costs, but overall, the income statement reflects significant financial challenges.

Balance Sheet

The balance sheet indicates a precarious financial position with negative stockholders' equity and a high debt-to-equity ratio, suggesting financial instability and potential solvency issues. The return on equity is positive due to negative equity, which is misleading as it reflects losses rather than profitability. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating cash burn and potential liquidity issues. However, the free cash flow to net income ratio is slightly above 1, suggesting that cash flows are somewhat aligned with reported losses. The company needs to improve its cash flow management to ensure sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.17M	22.60M	34.16M	19.23M	1.32M	430.00K
Gross Profit	23.27M	22.60M	-75.53M	19.21M	-6.20M	-57.28M
EBITDA	-85.48M	-97.17M	-104.45M	-113.82M	-96.19M	-66.49M
Net Income	-75.39M	-86.62M	-98.43M	-108.87M	-103.23M	-69.78M
Balance Sheet
Total Assets	226.24M	283.98M	285.92M	404.88M	519.77M	255.59M
Cash, Cash Equivalents and Short-Term Investments	199.91M	243.75M	234.06M	345.80M	154.29M	185.77M
Total Debt	23.70M	37.13M	45.07M	51.51M	58.33M	82.00M
Total Liabilities	302.89M	329.51M	363.11M	404.77M	422.90M	109.41M
Stockholders Equity	-76.66M	-45.53M	-77.19M	112.00K	96.87M	146.19M
Cash Flow
Free Cash Flow	-91.33M	-101.31M	-119.33M	192.40M	-53.56M	-47.47M
Operating Cash Flow	-90.49M	-100.41M	-118.11M	193.61M	-50.25M	-31.29M
Investing Cash Flow	24.21M	-29.90M	144.45M	-244.32M	36.17M	-108.91M
Financing Cash Flow	1.45M	105.43M	1.78M	1.76M	22.42M	217.47M

Foghorn Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.39 is above the 20-day moving average (MA) of 5.12, above the 50-day MA of 5.34, and above the 200-day MA of 4.94, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHTX.

Foghorn Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INBX	58 Neutral	$401.54M	0.20	-113.71%	―	―	―
TNXP	57 Neutral	$242.46M	―	-77.51%	―	-21.09%	90.95%
GLUE	52 Neutral	$303.24M	14.31	9.81%	―	2990.57%	―
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
FHTX	49 Neutral	$298.48M	―	322.49%	―	-31.30%	36.26%
ATXS	44 Neutral	$371.91M	―	-38.49%	―	―	11.81%
VIGL	35 Underperform		―		―	―	3.01%

Foghorn Therapeutics Corporate Events

Foghorn Therapeutics Advances in Precision Therapeutics

In September 2025, Foghorn Therapeutics presented its strategic advancements in precision therapeutics, highlighting its collaboration with Lilly on the FHD-909 program. The company is pioneering selective inhibitors and degraders for cancer treatment, with significant potential in addressing unmet needs in oncology. This collaboration, initiated with a landmark agreement in December 2021, underscores Foghorn’s commitment to innovation and positions it strongly within the industry, offering multi-billion dollar opportunities.

Foghorn Therapeutics Reports Q2 2025 Financial Update

On August 5, 2025, Foghorn Therapeutics provided a financial and corporate update for the second quarter of 2025, highlighting significant progress in its oncology pipeline. The company is advancing its FHD-909 Phase 1 trial for SMARCA4 mutated cancers, with promising preclinical results in combination with pembrolizumab and KRAS inhibitors. Foghorn’s selective degrader programs, including CBP, EP300, and ARID1B, are progressing well, with updates expected in late 2025. The company maintains a strong financial position with a cash runway extending into 2028, positioning it well for future developments.

Foghorn Therapeutics Signs New Lease Agreement

On June 27, 2025, Foghorn Therapeutics Inc. entered into a new lease agreement for a 72,846 square foot space in Watertown, MA, to serve as its principal executive offices and for research, development, and manufacturing purposes. The lease is set to commence on July 16, 2025, with rent starting in October 2026, and includes options for extension. Concurrently, the company terminated its previous lease for 81,441 square feet in Cambridge, MA, which was originally set to expire in 2028, as part of its strategic relocation plan.

Foghorn Therapeutics Holds Successful Annual Meeting

On June 17, 2025, Foghorn Therapeutics Inc. held its Annual Meeting of Stockholders, where all proposals were approved, including the election of four Class II directors for a three-year term and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The successful approval of these proposals signifies strong shareholder support and positions the company for continued governance stability and financial oversight.