MeritValue

Foghorn Therapeutics Inc.

FHTXdata completeness 88%7 fiscal years on file
The thesis, from the filings

Foghorn Therapeutics Inc. earns about -48660% on equity, but has diluted owners by 69% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.32M1$19.2M2$34.2M3$22.6M4$30.9M4
Net income−$101.3M5−$108.9M6−$98.4M7−$86.6M8−$74.3M8
Operating cash flow−$50.3M9$193.6M10−$118.1M11−$100.4M12−$86.1M12
Capital expenditure$3.31M13$1.21M14$1.22M15$906,00016$50,00016
Free cash flow (derived)−$53.6M9$192.4M10−$119.3M11−$101.3M12−$86.1M12
Total debt$017————
Cash & equivalents$101.1M18$52.2M19$80.3M20$55.5M21$80.9M21
Diluted shares37.2M41.6M42.0M54.9M63.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$17.23
your share of equity
Profit it earned you last year
−$11.79
Free cash flow it threw off
−$13.68
Debt you’d be carrying
—

10 shares is a claim on −$17.23 of net worth that earned you −$11.79 and generated −$13.68 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-48660% avg · 5y
FY21 -105%FY22 -97216%FY23 —FY24 —FY25 —

It earned an average -48660% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+69% shares · 5y

Share count is up 69% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-23-007297 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-24-009539 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-25-010933 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001628280-26-016814 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001628280-23-007297 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001628280-24-009539 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001628280-25-010933 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001628280-26-016814 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001628280-23-007297 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001628280-24-009539 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001628280-25-010933 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001628280-26-016814 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001628280-23-007297 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001628280-24-009539 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001628280-25-010933 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-016814 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K/A · period ending 2021-12-31 · accession 0001628280-22-021950 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2021-12-31 · accession 0001628280-23-007297 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0001628280-24-009539 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0001628280-25-010933 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-12-31 · accession 0001628280-26-016814 (CashAndCashEquivalentsAtCarryingValue)