Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $199.55M
• Dividend Yield: N/A
• Average Volume (3M): 157.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: -3.91%
• EPS Growth: 37.89%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 56,529,970
• 10 Day Avg. Volume: 207,613
• 30 Day Avg. Volume: 157,412
• PEG Ratio: 0.09
• Price to Book (P/B): -5.69
• Price to Sales (P/S): 11.46
• P/FCF Ratio: -2.56
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 4.89
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: $10.80
• Price Target Upside: 170.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $3.50 ▼(-12.50% Downside)

Foghorn Therapeutics' overall stock score is primarily impacted by its challenging financial performance, characterized by persistent losses and high leverage. Technical analysis also indicates bearish momentum, while valuation metrics reflect ongoing financial difficulties. The absence of earnings call data and corporate events further limits the score.

Positive Factors

Innovative Platform

Foghorn's Gene Traffic Control platform positions it to develop novel therapeutics, potentially offering a competitive edge in targeted cancer therapies.

Strategic Partnerships

Strategic partnerships provide Foghorn with funding and potential revenue streams, enhancing its ability to advance drug candidates and mitigate financial risks.

Pipeline Development

A diverse pipeline in development stages can lead to future revenue opportunities and strengthen market position if successful in clinical trials.

Negative Factors

Financial Instability

Ongoing financial instability with high leverage and negative equity poses risks to long-term viability and limits operational flexibility.

Cash Flow Challenges

Negative cash flows indicate cash burn, raising concerns about liquidity and the need for improved cash management to sustain operations.

Profitability Issues

Persistent losses and negative margins highlight profitability challenges, which could hinder growth and investment in R&D.

Foghorn Therapeutics Business Overview & Revenue Model

Company Description

Foghorn Therapeutics (FHTX) is a biotechnology company focused on developing novel therapeutics to treat cancer and other serious diseases by leveraging its proprietary Gene Traffic Control platform. The company operates primarily in the pharmaceutical sector, specializing in the discovery and development of targeted therapies that modulate gene expression to address unmet medical needs. Foghorn’s pipeline includes candidates in various stages of development that aim to provide innovative solutions for patients with complex diseases.

How the Company Makes Money

Foghorn Therapeutics generates revenue through a combination of funding from partnerships and collaborations, research grants, and potential future product sales. The company often enters into strategic partnerships with larger pharmaceutical companies, which may include upfront payments, milestone payments based on the progress of drug development, and royalties on future sales of approved products. Additionally, Foghorn may receive funding through government and private grants supporting innovative research in biotechnology. The success of its revenue model heavily depends on the advancement of its drug candidates through clinical trials and towards commercialization.

Foghorn Therapeutics Financial Statement Overview

Summary

Foghorn Therapeutics faces significant financial challenges, with 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.

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	24.52M	22.60M	34.16M	19.23M	1.32M	430.00K
Gross Profit	15.46M	-71.93M	-75.53M	19.21M	-6.20M	-57.28M
EBITDA	-80.87M	-97.17M	-104.45M	-113.82M	-96.19M	-66.49M
Net Income	-72.12M	-86.62M	-98.43M	-108.87M	-103.23M	-69.78M
Balance Sheet
Total Assets	204.96M	283.98M	285.92M	404.88M	519.77M	255.59M
Cash, Cash Equivalents and Short-Term Investments	180.28M	243.75M	234.06M	345.80M	154.29M	185.77M
Total Debt	22.53M	37.13M	45.07M	51.51M	58.33M	82.00M
Total Liabilities	294.62M	329.51M	363.11M	404.77M	422.90M	109.41M
Stockholders Equity	-89.66M	-45.53M	-77.19M	112.00K	96.87M	146.19M
Cash Flow
Free Cash Flow	-88.88M	-101.31M	-119.33M	192.40M	-53.56M	-47.47M
Operating Cash Flow	-88.35M	-100.41M	-118.11M	193.61M	-50.25M	-31.29M
Investing Cash Flow	121.10M	-29.90M	144.45M	-244.32M	36.17M	-108.91M
Financing Cash Flow	446.00K	105.43M	1.78M	1.76M	22.42M	217.47M

Foghorn Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 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 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.65, and below the 200-day MA of 4.64, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 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
INBX	55 Neutral	$1.19B	-7.46	-113.71%	―	―	―
GLUE	52 Neutral	$760.26M	37.92	9.81%	―	2990.57%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATXS	44 Neutral	$691.33M	―	-38.49%	―	―	11.81%
TNXP	42 Neutral	$153.67M	―	-77.51%	―	-21.09%	90.95%
FHTX	38 Underperform	$199.55M	-2.85	―	―	-3.91%	37.89%
VIGL	35 Underperform	―	―	―	―	―	3.01%

Foghorn Therapeutics Corporate Events

Foghorn Therapeutics Announces Key Pipeline Updates

On October 30, 2025, Foghorn Therapeutics hosted a conference call and webcast to announce updates on its Selective ARID1B, Selective CBP, and Selective EP300 degrader programs. These updates are significant for the company’s operations as they highlight progress in their pipeline, potentially enhancing their position in the oncology sector by targeting previously undruggable proteins and expanding their therapeutic reach in cancer treatment.

The most recent analyst rating on (FHTX) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Foghorn Therapeutics stock, see the FHTX Stock Forecast page.

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.

The most recent analyst rating on (FHTX) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Foghorn Therapeutics stock, see the FHTX Stock Forecast page.

Foghorn Therapeutics Reports Q2 2025 Financial Results

Foghorn Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative medicines targeting the chromatin regulatory system using its proprietary Gene Traffic Control platform, headquartered in Cambridge, Massachusetts. The company operates in the biopharmaceutical sector, with a unique approach to drug discovery and development.

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.

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.