Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $231.35M
• Dividend Yield: N/A
• Average Volume (3M): 132.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• Revenue Growth: -33.83%
• EPS Growth: 27.89%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -1.69
• Shares Outstanding: 55,612,240
• 10 Day Avg. Volume: 103,128
• 30 Day Avg. Volume: 132,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 15.68
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.00
• Price Target Upside: 164.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Foghorn Therapeutics faces significant financial instability, reflected in ongoing losses and negative equity. Technical indicators suggest bearish momentum, posing additional risks. However, promising advancements in drug development and strategic collaborations provide a positive outlook, partially offsetting the financial challenges. Valuation remains a concern due to lack of profitability and dividend yield.

Positive Factors

Drug Development

FHD-909 continues to push forward as a first-in-class oral selective SMARCA2 inhibitor, developed in partnership with Lilly.

Preclinical Data

Preclinical data presented at AACR 2025 showcased robust tumor regression across multiple SMARCA4-mutant NSCLC models.

Negative Factors

Financial Performance

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

Stock Performance

Foghorn’s shares have faced pressure following the discontinuation of FHD-286.

Foghorn Therapeutics Business Overview & Revenue Model

Company Description

Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines targeting genetically determined dependencies within the chromatin regulatory system. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It is developing FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM for the treatment of metastatic uveal melanoma and relapsed and/or refractory acute myeloid leukemia and myelodysplastic syndrome; and FHD-609, a small molecule protein degrader for BRD9 to treat patients with synovial sarcoma. The company is also developing an enzymatic inhibitor and a protein degrader as selective modulators of BRM; and ARID1B selective modulators for the treatment of ovarian, endometrial, colorectal, bladder, and gastric cancers. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and with Loxo Oncology to create novel oncology medicines. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Foghorn Therapeutics makes money through the development and commercialization of innovative therapeutic products. The company's revenue model is centered around strategic partnerships with larger pharmaceutical companies, which provide funding for research and development in exchange for collaboration rights, licensing agreements, and future royalties on product sales. Additionally, Foghorn may generate revenue from milestone payments tied to the successful progression of its drug candidates through clinical trials and regulatory approvals. The company's focus on targeting chromatin regulatory proteins offers unique therapeutic opportunities that can attract significant financial interest from industry partners.

Foghorn Therapeutics Financial Statement Overview

Summary

Foghorn Therapeutics faces significant financial challenges, including ongoing losses, negative equity, and cash flow concerns. The biotechnology sector's inherent volatility compounds these issues. While the company has managed to secure financing, the sustainability of this approach is uncertain without significant operational improvements or revenue growth.

Income Statement

Foghorn Therapeutics has shown fluctuating revenue growth, with a notable decline in 2024. The company continues to operate at a loss, with negative net profit margins and EBIT margins. Despite a slight revenue increase in 2023, the overall trajectory is concerning due to persistent operating losses.

Balance Sheet

The company's balance sheet reveals a negative stockholders' equity position in recent years, indicating financial instability. High liabilities relative to assets suggest potential solvency issues, and the negative equity ratio highlights balance sheet weakness. The debt-to-equity ratio is not calculable due to negative equity, further underscoring financial risk.

Cash Flow

Cash flow analysis shows negative free cash flow growth, indicating challenges in generating cash. The company relies heavily on financing activities to support operations, evident from substantial financing inflows. Operating cash flow remains negative, reflecting ongoing cash burn issues.

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

Foghorn Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.16
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.16 is above the 20-day moving average (MA) of 3.84, below the 50-day MA of 4.17, and below the 200-day MA of 6.16, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 53.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHTX.

Foghorn Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VYGR	52 Neutral	$196.36M	5.05	-24.25%	―	-68.00%	-134.79%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
CMPS	47 Neutral	$281.06M	―	-81.56%	―	―	3.88%
FHTX	44 Neutral	$231.35M	―	322.49%	―	-33.83%	27.89%
LYEL	40 Neutral	$138.81M	―	-66.10%	―	-53.08%	-40.31%
CRGX	40 Underperform	$210.46M	―	-43.76%	―	―	―

Foghorn Therapeutics Corporate Events

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.

Spark’s Take on FHTX Stock

According to Spark, TipRanks’ AI Analyst, FHTX is a Underperform.

Foghorn Therapeutics receives a low overall score due to significant financial instability, negative profitability, and technical indicators suggesting bearish momentum. However, promising drug development advancements provide a positive outlook, which slightly mitigates the overall negative assessment.

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

Foghorn Therapeutics Advances Drug Development in Oncology

Foghorn Therapeutics has made significant advancements in its drug development programs, particularly in chromatin biology and protein degradation. The company is progressing multiple high-value assets into clinical trials, including FHD-909, a selective SMARCA2 inhibitor, and anticipates updates on the ARID1B program in 2025, positioning itself strongly in the oncology therapeutics market.