Fulcrum Therapeutics (FULC) AI Stock Analysis

• Market Cap: $197.02M
• Dividend Yield: N/A
• Average Volume (3M): 398.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 2752.05%
• EPS Growth: 87.57%
• Country: US
• Employees: 45
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -0.22
• Shares Outstanding: 53,979,305
• 10 Day Avg. Volume: 334,412
• 30 Day Avg. Volume: 398,626
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.13
• 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: $5.67
• Price Target Upside: 55.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Fulcrum Therapeutics' overall score reflects a company with significant revenue growth and a strong balance sheet, yet struggling with profitability and cash flow management. The technical indicators suggest potential volatility, and the valuation metrics indicate challenges typical for a biotech firm. While the earnings call offers some optimism with progress in development programs, the termination of a key collaboration agreement poses a risk to future revenue streams.

Positive Factors

Enrollment Progress

FULC announced that the 10th patient has been enrolled in the 12mg dose cohort, showing progress in their enrollment efforts.

Market Opportunity

The recent global withdrawal of OXBRYTA, a previously approved oral HbF inducer, has created an opportunity for Fulcrum to attract patients who were previously on that therapy.

Regulatory Advantage

The FDA is likely to place higher focus on evaluating sickle cell disease clinical programs, which could benefit Fulcrum Therapeutics' pociredir program.

Negative Factors

Clinical Complications

Patients being recruited in the 12mg dose cohort tend to have more disease severity, which could complicate the study outcomes.

Conservative Analyst View

Analyst reiterates an Underperform rating with a price objective of $2, suggesting limited confidence in the stock's potential.

Program Delays

Study design includes a brief pause after readout to allow Data Monitoring Committee review, indicating potential delays in the pociredir program's progress.

Fulcrum Therapeutics Business Overview & Revenue Model

Company Description

Fulcrum Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing products for improving the lives of patients with genetically defined diseases in the areas of high unmet medical need in the United States. Its product candidates are losmapimod, a small molecule for the treatment of facioscapulohumeral muscular dystrophy; and FTX-6058, an investigational oral fetal hemoglobin inducer for the treatment of sickle cell disease and other hemoglobinopathies, including beta-thalassemia. The company is also discovering drug targets for the treatments of rare neuromuscular, muscular, central nervous system, and hematologic disorders, as well as cardiomyopathies and pulmonary diseases. Fulcrum Therapeutics, Inc. has research and discovery collaboration agreement with Acceleron Pharma Inc. to identify biological targets to modulate specific pathways associated with a targeted indication within the pulmonary disease space; and has a strategic collaboration and license agreement with MyoKardia, Inc. to discover, develop, and commercialize novel targeted therapies for the treatment of genetic cardiomyopathies. Fulcrum Therapeutics, Inc. was Incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Fulcrum Therapeutics generates revenue primarily through strategic collaborations and partnerships with other pharmaceutical and biotechnology companies. These partnerships often involve licensing agreements, research and development collaborations, and milestone payments related to the advancement of specific drug candidates. The company may also earn revenue through grants and funding from governmental and non-governmental organizations to support its research initiatives. Additionally, as its drug candidates progress through clinical trials and potentially reach the market, Fulcrum Therapeutics anticipates revenue from product sales and royalties based on successful commercialization.

Fulcrum Therapeutics Financial Statement Overview

Summary

Fulcrum Therapeutics demonstrates significant revenue growth and a strong balance sheet with considerable cash reserves. However, challenges in achieving profitability and positive cash flow persist. The company needs to address its high operating costs to improve its financial health.

Income Statement

Fulcrum Therapeutics has shown significant revenue growth in the TTM (Trailing-Twelve-Months), with total revenue rising substantially compared to the previous year. However, the company remains unprofitable, with negative EBIT and net income, indicating operational challenges. The gross profit margin is robust at 77.83%, which is a positive indicator of cost efficiency, but the negative net profit margin of -12.16% highlights persistent losses. The company needs to address its high operating costs to improve profitability.

Balance Sheet

The balance sheet of Fulcrum Therapeutics is relatively strong, with a high equity ratio of 93.22%, indicating a solid capital structure and low reliance on debt. The debt-to-equity ratio is low at 0.04, which suggests prudent financial management. However, the return on equity remains negative at -4.00%, reflecting ongoing net losses. The substantial cash reserves further enhance financial stability, providing a buffer against operational challenges.

Cash Flow

The cash flow statement reveals a mixed picture. While there has been a notable improvement in free cash flow, which is less negative than the previous year, the operating cash flow remains negative, indicating that the company is still not generating enough cash from its core operations. The free cash flow to net income ratio is negative, reflecting the need for improved cash flow management. Despite these issues, the large cash reserves provide some cushion for the future.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
80.00M	2.81M	6.34M	19.16M	8.82M	0.00
	Gross Profit
62.26M	2.81M	3.93M	16.65M	6.44M	-2.05M
	EBIT
-21.90M	-110.66M	-112.56M	-81.05M	-71.61M	-84.22M
	EBITDA
-15.30M	-108.49M	-109.72M	-78.54M	-69.23M	-82.16M
	Net Income Common Stockholders
-9.72M	-97.33M	-105.62M	-78.33M	-68.44M	-79.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
407.00K	236.22M	202.92M	218.16M	112.91M	96.71M
	Total Assets
0.00	257.69M	226.69M	235.00M	129.58M	110.44M
	Total Debt
0.00	10.82M	13.42M	0.00	17.00K	50.00K
	Net Debt
407.00K	-14.74M	-21.68M	-35.41M	-57.03M	-96.66M
	Total Liabilities
0.00	22.50M	27.74M	23.46M	34.40M	23.29M
	Stockholders Equity
1.32M	235.19M	198.94M	211.54M	95.18M	87.15M
Cash Flow		Free Cash Flow
-2.50M	-91.47M	-99.01M	-80.19M	-55.00M	-40.34M
	Operating Cash Flow
-2.22M	-90.97M	-97.05M	-78.48M	-53.66M	-39.48M
	Investing Cash Flow
32.23M	-36.69M	12.41M	-129.67M	-57.14M	-944.00K
	Financing Cash Flow
2.75M	118.12M	84.32M	186.51M	71.13M	64.34M

Fulcrum Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FULC, the sentiment is Positive. The current price of 3.65 is above the 20-day moving average (MA) of 2.94, above the 50-day MA of 3.19, and below the 200-day MA of 4.78, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FULC.

Fulcrum Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	62 Neutral	$197.02M	―	-4.07%	―	2752.05%	87.57%
PBYI	59 Neutral	$141.89M	4.69	41.60%	―	-2.19%	34.91%
Sector *	51 Neutral	$5.20B	3.18	-40.80%	2.96%	17.66%	1.94%
TNGX	38 Underperform	$149.19M	―	-57.58%	―	15.18%	-9.47%
DMAC	36 Underperform	$151.28M	―	-53.27%	―	―	2.53%
DSGN	36 Underperform	$203.78M	―	-19.08%	―	―	26.63%
IKT	36 Underperform	$140.51M	―	-52.00%	―	-100.00%	38.72%

Fulcrum Therapeutics Corporate Events

Fulcrum Therapeutics Faces Termination of Key Agreement

On February 26, 2025, Fulcrum Therapeutics received a termination notice from MyoKardia regarding their collaboration and license agreement established in 2020. The termination, effective June 26, 2025, will end Fulcrum’s entitlement to milestone payments and royalties, impacting the company’s financial expectations from this partnership.