Foghorn Therapeutics Inc. (FHTX) stock analysis

FHTXNasdaqPharmaceutical PreparationsFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 9, 2026Score 10/300% above fair value

$2.09+0.19 (+10.00%)

Close on Nov 11, 2026Market cap $124.12MP/E 29.9Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Mixed10 of 30 checks passed

Foghorn Therapeutics passes 10 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 1/6
Growth: 2/6
Past performance: 2/6
Financial health: 5/6
Dividend: 0/6

What stands out

No debt
Foghorn Therapeutics has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 17.1% a year over the last three fiscal years.
Interest well covered
No meaningful interest expense to cover.
Debt covered by cash flow
There is no debt to cover.

What to watch

Margin of safety under 20%
The price is 0.4% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $2.09 is above our fair value estimate of $2.08.
Elevated bankruptcy risk
The Altman Z-score is -2.66; above 3 is the safe zone and below 1.8 the distress zone.
P/E above the industry
Foghorn Therapeutics's P/E of 29.9 is above the Drugs median of 25.1.

Valuation1/6

P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
Foghorn Therapeutics's P/E of 29.9 is above the Drugs median of 25.1.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/S below the industry
Foghorn Therapeutics's price-to-sales of 1.11 is below the Drugs median of 4.80 (book value is negative, so we use sales).
Trading above fair value
The share price of $2.09 is above our fair value estimate of $2.08.
Margin of safety under 20%
The price is 0.4% above fair value, so there is no margin of safety.

Growth2/6

Revenue growing 10%+ a year
Revenue grew 17.1% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 357% over the last twelve months; the Drugs median is 8.0%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.

Past performance2/6

Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 8.4% over the last twelve months, against a 5-year average of -1832%.
Net margin above the industry
Foghorn Therapeutics's net margin of 8.4% is above the Drugs median of -53.0%.

Financial health5/6

No debt
Foghorn Therapeutics has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 4.24 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is -2.66; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Foghorn Therapeutics has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$2.08

The share price is 0% above this estimate.

20%+ below

Near fair value

20%+ above

$2.09Price

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	25.1×	–	25.1×	$1.76	53%
EV/EBITDA	17.1×	–	17.1×	$2.45	47%
Fair value				$2.08	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/B at month end
Drugs median 2.3

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day: $2.86M
Value traded per 1% price move: $554.17K

Downside

High risk

Typical loss in a bad month: 56.3%
Volatility (annualized): 81%
Sharpe ratio, 1 year: -0.70
Beta to the S&P 500 (5Y): 1.87

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2018 to 2025

Operating margin

-279.5%+15657.9 pts over 5 years

Net margin

-240.3%+15759.7 pts over 5 years

Per year	1 year	3 years	5 years	10 years	Five-year pace
Revenue	+36.8%	+17.1%	+135.1%	–

Returns and balance sheet

8 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2018	FY2020	FY2025
Return on equity	–	-236.5%	96.5%
Return on assets	–	-49.5%	-30.8%
Current ratio	–	10.12	2.73
Debt to equity	–	0.13	–
Net debt to EBITDA	–	1.11×	–
Interest coverage	–	-70.0×	–
Capex to revenue	–	3763.5%	0.2%
Diluted shares	–	11M	63M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin-240.3%

Asset turnover0.13×

Equity multiplier-3.13×

Return on equity, FY202596.5%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	-240.3%	0.13×	-3.13×	96.5%
FY2024	-383.2%	0.08×	-4.64×	141.2%
FY2023	-288.2%	0.10×	-8.96×	255.4%
FY2022	-566.3%	0.04×	9.53×	-224.5%
FY2021	-7681.6%	0.00×	3.19×	-83.4%
FY2020	-16000.0%	0.00×	4.78×	-236.5%

Where these numbers come from

Parsed from the XBRL in Foghorn Therapeutics's annual and quarterly filings with the SEC
Fourth quarters derived from the annual report minus nine months
Every figure in the statements links to its source filing