Foghorn Therapeutics Inc. (NASDAQ: FHTX)

Sector: Healthcare Industry: Biotechnology CIK: 0001822462
P/B -3.16
P/E -3.93
P/S 11.56
Market Cap 283.38 Mn
ROIC (Qtr) 144.09
Div Yield % 0.00
Rev 1y % (Qtr) 4.42
Total Debt (Qtr) 22.53 Mn
Debt/Equity (Qtr) -0.25

About

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 92.58M provide 13.71x coverage of short-term debt 6.75M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 204.96M provides 9.10x coverage of total debt 22.53M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (88.35M) fully covers other non-current liabilities (64.64M) by 1.37x, showing strong long-term stability.
  • Short-term investments of 90.94M provide solid 1.21x coverage of other current liabilities 75.12M, indicating strong liquidity.
  • Retained earnings of (610.80M) represent substantial 6.81x of equity (89.66M), indicating strong internal capital generation.

Cons

  • Operating cash flow of (88.35M) barely covers its investment activities of 121.10M, with a coverage ratio of -0.73, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 121.10M provide weak support for R&D spending of 83.93M, which is 1.44x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (88.35M) provides insufficient coverage of deferred revenue obligations of 258.40M, which is -0.34x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (88.35M) shows concerning coverage of stock compensation expenses of 10.64M, with a -8.30 ratio indicating potential earnings quality issues.
  • Free cash flow of (88.88M) provides weak coverage of capital expenditures of 529000, with a -168.01 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.13 12.31
EV to Cash from Ops. -2.62 23.25
EV to Debt 10.26 738.44
EV to EBIT -3.21 -9.16
EV to EBITDA -2.96 6.95
EV to Free Cash Flow [EV/FCF] -2.60 21.90
EV to Market Cap 0.82 65.67
EV to Revenue 9.43 227.32
Price to Book Value [P/B] -3.16 22.34
Price to Earnings [P/E] -3.93 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage 0.00 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -13.76 -27.13
Cash and Equivalents Growth (1y) % 55.90 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 20.94 -46.93
EBITDA Growth (1y) % 17.99 -1.68
EBIT Growth (1y) % 19.18 -56.45
EBT Growth (1y) % 19.18 -12.70
EPS Growth (1y) % 41.15 -28.31
FCF Growth (1y) % 14.45 -31.90
Gross Profit Growth (1y) % -3.91 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.12 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 1.09 3.85
Current Ratio 2.16 7.27
Debt to Equity Ratio -0.25 0.40
Interest Cover Ratio 0.00 841.00
Times Interest Earned 0.00 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -260.00 -18,234.31
EBIT Margin % -294.16 -18,580.80
EBT Margin % -294.16 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -294.20 -19,439.22