Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $290.85M
• Dividend Yield: N/A
• Average Volume (3M): 109.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: -31.30%
• EPS Growth: 36.26%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 56,529,970
• 10 Day Avg. Volume: 110,875
• 30 Day Avg. Volume: 109,394
• 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: 0.41
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: -1.40
• 1Y Price Target: $7.33
• Price Target Upside: 42.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $5.00 ▼(-2.72% Downside)

Foghorn Therapeutics' overall stock score is primarily impacted by its challenging financial performance, characterized by persistent losses and high leverage. While technical analysis and valuation also reflect some weaknesses, recent corporate events provide a positive outlook with advancements in the oncology pipeline and a strong cash position.

Positive Factors

Drug Development

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.

Financial Stability

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

Partnerships

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 Performance

Foghorn reported Q2 collaboration revenues of $7.6M 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 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 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 persistent losses and negative equity. The company shows a challenging financial situation with a consistent negative net income and EBIT, and a weakening balance sheet. However, it maintains some liquidity through financing activities.

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	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: Neutral
• Last Price: 5.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 5.14 is below the 20-day moving average (MA) of 5.50, below the 50-day MA of 5.15, and below the 200-day MA of 5.18, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 69.40 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
TNXP	63 Neutral	$523.85M	―	-77.51%	―	-21.09%	90.95%
INBX	58 Neutral	$346.78M	0.20	-113.71%	―	―	―
GLUE	52 Neutral	$274.83M	12.94	9.81%	―	2990.57%	―
FHTX	47 Neutral	$290.85M	―	322.49%	―	-31.30%	36.26%
Sector *	47 Neutral	C$212.51M	-2.12	-24.82%	3.10%	19.48%	-0.09%
ATXS	44 Neutral	$375.29M	―	-38.49%	―	―	11.81%
VIGL	35 Underperform	$383.88M	―	-145.68%	―	―	3.01%

Foghorn Therapeutics Corporate Events

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.

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.

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 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.

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 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.