Foghorn Therapeutics (FHTX) AI Stock Analysis

• Market Cap: $244.69M
• Dividend Yield: N/A
• Average Volume (3M): 147.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.04
• Revenue Growth: -33.83%
• EPS Growth: 27.89%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -1.69
• Shares Outstanding: 55,612,240
• 10 Day Avg. Volume: 101,541
• 30 Day Avg. Volume: 147,064
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.83
• Price to Cash Flow (P/CF): -2.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.80
• Price Target Upside: 168.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Foghorn Therapeutics receives a moderate score due to significant financial challenges, including negative equity and cash flow issues. While there is a strong commitment to advancing in the oncology space, as evidenced by recent corporate events, the technical analysis indicates potential downward pressure. The stock remains speculative due to its negative P/E ratio and lack of dividend yield.

Positive Factors

Clinical Trial Progress

The analyst expects positive data from the ongoing Phase I trial of FHD-909, with anticipated good tolerability and promising response rates at therapeutically relevant doses.

Strategic Collaboration

Foghorn continues to progress its strategic collaboration with Lilly for FHD-909.

Negative Factors

Financial Performance

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

Foghorn Therapeutics Business Overview & Revenue Model

Company Description

Foghorn Therapeutics (FHTX) is a biotechnology company focused on discovering and developing a new class of medicines targeting chromatin regulatory proteins. By leveraging their proprietary Gene Traffic Control platform, Foghorn Therapeutics aims to treat a wide range of diseases, including cancer. The company is based in the United States and operates within the healthcare and biotechnology sectors.

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: 4.40
• 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 4.4 is below the 20-day moving average (MA) of 5.08, below the 50-day MA of 4.69, and below the 200-day MA of 6.47, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 32.55 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
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
FHTX	48 Neutral	$244.69M	―	322.49%	―	-33.83%	27.89%
KURA	45 Neutral	$584.67M	―	-42.91%	―	―	2.90%
FATE	42 Neutral	$110.00M	―	-54.21%	―	-78.55%	-0.92%
LPTX	42 Neutral	$15.94M	―	-106.79%	―	―	66.29%

Foghorn Therapeutics Corporate Events

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.

Foghorn Therapeutics Sets 2025 Strategic Objectives

Foghorn Therapeutics announced its strategic objectives for 2025, highlighting the progress of its inhibitor and degrader programs. The company is advancing its first-in-class oral selective SMARCA2 inhibitor, FHD-909, in a Phase 1 trial targeting SMARCA4 mutated cancers, particularly non-small cell lung cancer. Foghorn is also making strides in its preclinical pipeline, with successful selective degradation of ARID1B and ongoing development of Selective CBP and EP300 degraders. With a strong balance sheet and cash runway extending into 2027, Foghorn is positioned for significant advancements in its oncology programs.

Foghorn Therapeutics Board Member Resignation Announced

Adam M. Koppel, M.D., Ph.D., has resigned from the board of directors of Foghorn Therapeutics Inc. effective immediately, leaving his roles on the Audit Committee and Nominating and Corporate Governance Committee. His departure was not due to any disagreements with the company’s operations, policies, or practices, and his term was set to expire at the 2025 Annual Meeting.

Foghorn Therapeutics Advances Precision Oncology Pipeline

Foghorn Therapeutics has unveiled its strategic roadmap, emphasizing the advancement of its precision therapeutics pipeline, with a particular focus on oncology. The company is progressing multiple high-value assets into the clinic, including selective inhibitors and degraders for challenging targets like SMARCA2, EP300, and ARID1B, aiming to deliver first-in-class therapies with broad applications and potential blockbuster status.