Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $277.56M
• Dividend Yield: N/A
• Average Volume (3M): 96.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: -31.30%
• EPS Growth: 36.26%
• Country: US
• Employees: 112
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 56,529,970
• 10 Day Avg. Volume: 119,017
• 30 Day Avg. Volume: 96,091
• 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: 0.43
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: -1.40
• 1Y Price Target: $11.50
• Price Target Upside: 145.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 40 Neutral
• Price Target: $5.00 ▲(6.61% Upside)

Foghorn Therapeutics' overall stock score is primarily impacted by its challenging financial performance, characterized by persistent losses and high leverage. Technical analysis and valuation also contribute to the low score, reflecting bearish momentum and unattractive valuation metrics.

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 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 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: Negative
• Last Price: 4.69
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.69 is below the 20-day moving average (MA) of 5.15, below the 50-day MA of 5.32, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.33 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	58 Neutral	430.22M	-2.70	1263.30%	―	―	―
TNXP	57 Neutral	216.52M	-0.02	-93.18%	―	-21.09%	90.95%
GLUE	52 Neutral	408.85M	19.09	―	―	2990.57%	―
ATXS	44 Neutral	410.28M	-3.52	―	―	―	11.81%
FHTX	40 Neutral	$277.56M	―	322.49%	―	-31.30%	36.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.

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 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.