Foghorn Therapeutics Inc. Common Stock (FHTX)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Foghorn Therapeutics is a clinical-stage biopharmaceutical company with a proprietary Gene Traffic Control platform aimed at chromatin regulatory targets in cancer. On 2026-10-13, the stock closed at $1.85, giving a market cap of $109.9 million. The business is not yet profitable: FairStock’s P/E calculation is -1.89. Operating cash generation is deeply negative, with trailing free cash flow of -$84.3 million and an FCF yield of -76.7% (FairStock calculation). The balance-sheet risk signals are poor: Altman Z-Score -3.67 and Piotroski F-Score 3/9, both FairStock calculations. Growth has been uneven but the latest filed quarter was better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $16.1 million and net loss was $7.2 million, compared with revenue of $7.6 million and a net loss of $17.9 million in fiscal Q2 2025. For the full years, fiscal 2025 revenue was $30.9 million and net loss $74.3 million, or EPS -$1.18; fiscal 2024 revenue was $22.6 million and net loss $86.6 million, EPS -$1.58; fiscal 2023 revenue was $34.2 million and net loss $98.4 million, EPS -$2.34. That is still a loss in each of the last four years, so FairStock assigns no Lynch category. The company may have a scientific moat if its platform works, but that moat is unproven. Graham would call this speculative: no earnings, negative cash flow, high beta of 3.01, and a stock near the low end of its 52-week range of $1.79 to $7.61. I would need much more evidence of durable profits before viewing the $1.85 price as a margin-of-safety bargain rather than a lottery ticket on drug development.

In plain English: Foghorn Therapeutics is a small drug company trying to develop cancer medicines by targeting how genes are controlled. It is not yet profitable and spends much more cash than it brings in, although recent quarterly revenue rose and its loss became smaller. At $1.85, the price looks speculative and hard to call cheap because there are no profits to value; it depends on future drug success.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer