Is the Bullish Sentiment on Fulcrum Therapeutics (FULC) Justified?

Fulcrum Therapeutics may be overvalued with strong growth indicators, but the 9 analysts following the company on average give it a buy rating. The analysts have set target prices ranging from $8 to $35 per share, for an average of $21.89. At today's price of $13.03, Fulcrum Therapeutics is trading -40.48% away from its average target price, suggesting there is an analyst consensus of strong upside potential.

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. Based in Cambridge, MA, the small-cap Healthcare company has 104 full time employees. Fulcrum Therapeutics has not offered a dividend during the last year.

Fulcrum Therapeutics does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -2.11. The average P/E ratio for the Healthcare sector is 13.21. The market is undervaluing Fulcrum Therapeutics in terms of its equity because its P/B ratio is 3.1. In comparison, the sector average is 4.07.

If analysts are giving the the company a decent rating despite its hefty price point, it could be related to its strong cash flows. They might also believe Fulcrum Therapeutics's positive margin growth trend will continue.

2019-12-31 2020-12-31 2021-12-31
Revenue (k) $0 $8,823 $19,163
Revenue Growth n/a n/a 117.19%
Operating Margins n/a -811.6% -423.0%
Operating Margins Growth n/a n/a 47.88%
Net Margins n/a -802.66% -421.89%
Net Margins Growth n/a n/a 47.44%
Earnings Per Share -$8.13 -$2.79 -$2.29
EPS Growth n/a 65.68% 17.92%
Free Cash Flow (k) -$40,336 -$54,997 -$80,191
FCF Growth n/a -36.35% -45.81%
Capital Expenditures (k) -$853 -$1,342 -$1,713
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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