Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $253.35M
• Dividend Yield: N/A
• Average Volume (3M): 157.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• 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: 56,551,290
• 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: 0.47
• Enterprise Value/Revenue: 4.89
• Enterprise Value/Gross Profit: 33.13
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $11.38
• Price Target Upside: 145.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $4.50 ▼(-3.02% Downside)

Foghorn Therapeutics' overall stock score is primarily impacted by its weak financial performance and unattractive valuation. However, positive corporate events, including strategic partnerships and pipeline updates, provide some optimism for future growth. Technical analysis presents a mixed picture, with no strong trend direction.

Positive Factors

Strategic Partnerships

The partnership with Lilly enhances Foghorn's market position by leveraging Lilly's resources and expertise, potentially accelerating drug development and market entry.

Pipeline Development

Progress in pipeline development indicates Foghorn's focus on innovative cancer treatments, potentially expanding its market reach and addressing unmet medical needs.

Cash Runway

A strong cash position provides Foghorn with the financial stability to continue its R&D efforts and strategic initiatives without immediate funding pressures.

Negative Factors

Financial Instability

The negative equity and high leverage reflect financial instability, which could constrain Foghorn's ability to invest in growth and manage operational risks.

Negative Cash Flows

Persistent negative cash flows highlight operational inefficiencies and may limit Foghorn's ability to fund future growth and innovation without external financing.

Leadership Transition

Frequent leadership changes can disrupt strategic continuity and affect investor confidence, potentially impacting long-term strategic execution and financial planning.

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 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 negative net profit margins, high leverage, negative equity, and negative cash flows. The company needs to address its financial instability to improve its financial health and sustainability.

Income Statement

Foghorn Therapeutics shows a challenging financial position with consistently negative net profit margins and EBIT margins over the years, indicating ongoing losses. The revenue growth rate is positive in the TTM period, but the overall profitability remains weak due to high operating expenses relative to revenue.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is negative, reflecting the company's high leverage and potential risk. Return on equity is also negative, further highlighting the company's struggles to generate profit from its equity base.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a declining trend in free cash flow growth. The ratios of operating and free cash flow to net income are slightly above 1, suggesting that cash flows are somewhat aligned with net income, but the overall cash flow position remains weak.

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	3.62M	22.60M	34.16M	19.23M	1.32M	-57.28M
EBITDA	-77.36M	-97.17M	-104.45M	-113.82M	-96.19M	-67.20M
Net Income	-72.12M	-86.62M	-98.43M	-108.88M	-101.32M	-68.80M
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: Positive
• Last Price: 4.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 4.64 is above the 20-day moving average (MA) of 4.53, above the 50-day MA of 4.38, and above the 200-day MA of 4.61, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 41.52 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	63 Neutral	$1.19B	-8.12	-144.07%	―	―	―
GLUE	52 Neutral	$1.22B	54.85	9.28%	―	1112.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FHTX	51 Neutral	$253.35M	-3.91	―	―	-3.91%	37.89%
TNXP	51 Neutral	$219.04M	-0.02	-64.99%	―	-8.79%	81.36%
ATXS	44 Neutral	$734.68M	-5.88	-43.15%	―	―	-2.74%
VIGL	35 Underperform	―	―	―	―	―	3.01%

Foghorn Therapeutics Corporate Events

Foghorn Therapeutics Appoints Interim CFO Jeff Sacher

On December 3, 2025, Foghorn Therapeutics appointed Jeff Sacher as Treasurer and interim CFO, while continuing its search for a permanent CFO. Mr. Sacher, a seasoned professional with extensive experience in biotechnology and investment banking, will provide interim CFO services through Danforth Advisors, a consultancy firm specializing in life sciences companies. This appointment is expected to bring strategic financial expertise to Foghorn Therapeutics during this transitional period.

Foghorn Therapeutics Unveils Strategic Advancements with Lilly

In November 2025, Foghorn Therapeutics presented its strategic advancements, highlighting its collaboration with Lilly to develop FHD-909, a selective SMARCA2 inhibitor. This partnership, initiated in December 2021, includes a significant financial agreement and aims to address SMARCA4-mutant cancers. The company’s robust pipeline and strategic collaborations position it to potentially impact a large portion of the oncology market, with ongoing trials and preclinical developments indicating promising future opportunities.

Foghorn Therapeutics CFO Kristian Humer Resigns

On October 31, 2025, Kristian Humer announced his resignation as Chief Financial Officer of Foghorn Therapeutics, effective November 14, 2025, to pursue other opportunities. His departure was not due to any disagreements with the company. Foghorn Therapeutics also provided a corporate update, highlighting the progress of its various cancer treatment programs. The company is advancing its FHD-909 Phase 1 trial for SMARCA4-mutated cancers, with a focus on non-small cell lung cancer, and is collaborating with Lilly on several oncology programs. Foghorn’s financial position remains strong, with a cash runway into 2028, supporting its ongoing development of selective degrader programs targeting CBP, EP300, and ARID1B for various cancer indications.

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.