Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -16.50%
• EPS Growth: 33.02%
• Country: US
• Employees: 259
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 173,322,390
• 10 Day Avg. Volume: 2,388,714
• 30 Day Avg. Volume: 2,346,017
• PEG Ratio: 0.11
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 58.82
• P/FCF Ratio: -2.34
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: 40.30
• Enterprise Value/Gross Profit: 44.27
• Enterprise Value/Ebitda: -1.06
• 1Y Price Target: $15.25
• Price Target Upside: 89.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -1.73
• Revenue Forecast (FY): $12.81M

• Rating: 55 Neutral
• Price Target: $8.50 ▲(5.85% Upside)

Relay Therapeutics' stock score is primarily influenced by its financial performance and technical analysis. The company faces significant profitability and cash flow challenges, which weigh heavily on its financial performance score. However, strong technical indicators suggest positive market momentum, providing a counterbalance. The valuation is weak due to negative earnings and no dividend yield, further impacting the overall score.

Positive Factors

Clinical Progress

Advancements in clinical trials for RLY-2608 indicate potential future revenue streams and strengthen Relay's position in precision medicine.

Board Expansion

New board members with expertise in late-stage development and commercialization can enhance strategic direction and execution capabilities.

Low Leverage

Low leverage provides financial stability and flexibility, allowing Relay to invest in R&D and strategic initiatives without significant debt burden.

Negative Factors

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and may limit the company's ability to fund new projects or withstand financial downturns.

Revenue Volatility

Revenue volatility can create uncertainty in financial planning and may affect the company's ability to sustain long-term growth and profitability.

Operational Challenges

Negative margins suggest inefficiencies in operations, which could hinder Relay's ability to achieve profitability and compete effectively in the biotech industry.

Relay Therapeutics Business Overview & Revenue Model

Company Description

Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. It has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D. E. Shaw Research computational modeling capabilities focused on analysis of protein motion to develop and commercialize compounds and products directed to such targets; and Genentech, Inc. for the development and commercialization of RLY-1971. The company was formerly known as Allostery, Inc. and changed its name to Relay Therapeutics, Inc. in December 2015. Relay Therapeutics, Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Relay Therapeutics generates revenue through a combination of research collaborations, licensing agreements, and potential milestone payments associated with its drug development programs. The company partners with larger pharmaceutical companies to co-develop drug candidates, which can lead to upfront payments, research funding, and royalties on future sales. Additionally, as Relay Therapeutics advances its candidates into clinical trials and achieves specific developmental milestones, it may receive milestone payments from its partners. The success of its drug candidates in clinical trials can also lead to lucrative licensing deals, further enhancing its revenue streams.

Relay Therapeutics Financial Statement Overview

Summary

Relay Therapeutics faces ongoing challenges in achieving profitability and positive cash flow. Despite a stable balance sheet with low leverage, significant losses and operational challenges are evident in the income statement. Cash flow generation remains a critical concern.

Income Statement

Relay Therapeutics has experienced volatility in revenue, with significant fluctuations over the years. The gross profit margin is positive in recent years, but the company consistently reports negative net income, resulting in a negative net profit margin. EBIT and EBITDA margins are also negative, indicating operational challenges. The revenue has shown growth over the past year, but the overall trajectory remains uncertain.

Balance Sheet

The balance sheet of Relay Therapeutics is relatively strong with a high equity ratio, indicating a larger proportion of assets financed by equity. The company has a low debt-to-equity ratio, suggesting manageable leverage. However, the consistent net losses impact the return on equity negatively. Overall, the company maintains a stable financial position despite ongoing losses.

Cash Flow

Relay Therapeutics has faced challenges generating positive cash flow, with negative free and operating cash flows. The free cash flow has been declining, indicating cash constraints. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting profits to cash. While the company has been able to access financing, it remains cash flow negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.36M	10.01M	25.55M	1.38M	3.03M	82.65M
Gross Profit	7.61M	10.01M	25.55M	1.38M	3.03M	79.11M
EBITDA	-316.55M	-380.21M	-374.15M	-306.82M	-223.08M	-52.25M
Net Income	-297.59M	-337.71M	-341.97M	-290.51M	-363.87M	-52.41M
Balance Sheet
Total Assets	670.00M	871.30M	843.98M	1.10B	1.01B	799.83M
Cash, Cash Equivalents and Short-Term Investments	596.43M	781.32M	750.09M	998.92M	958.07M	678.06M
Total Debt	33.33M	48.50M	53.47M	57.74M	22.90M	24.42M
Total Liabilities	62.29M	93.50M	91.98M	149.55M	110.64M	36.54M
Stockholders Equity	607.71M	777.79M	752.00M	950.22M	897.81M	763.29M
Cash Flow
Free Cash Flow	-248.87M	-251.13M	-304.44M	-238.55M	-77.88M	-104.42M
Operating Cash Flow	-248.46M	-249.11M	-300.32M	-229.49M	-74.41M	-102.49M
Investing Cash Flow	186.33M	-41.08M	257.63M	-188.75M	-479.51M	81.67M
Financing Cash Flow	1.47M	270.15M	34.75M	289.91M	388.09M	426.51M

Relay Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLAY, the sentiment is Positive. The current price of 8.03 is above the 20-day moving average (MA) of 6.78, above the 50-day MA of 6.27, and above the 200-day MA of 4.06, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 68.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLAY.

Relay Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZBIO	57 Neutral	$2.14B	―	-68.33%	―	―	―
IMTX	56 Neutral	$1.29B	―	-29.01%	―	-27.61%	-69.49%
RLAY	55 Neutral	$1.39B	―	-41.14%	―	-16.50%	33.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNGX	51 Neutral	$1.45B	―	-51.65%	―	53.28%	21.77%
GERN	45 Neutral	$759.64M	―	-29.57%	―	522.13%	62.68%
PROK	29 Underperform	$637.77M	―	―	―	―	2.35%

Relay Therapeutics Corporate Events

Relay Therapeutics Reports Q3 2025 Financial Progress

Relay Therapeutics, Inc., a clinical-stage precision medicine company, focuses on developing small molecule therapies for cancer and genetic diseases using its innovative Dynamo platform. In its third-quarter 2025 earnings report, Relay Therapeutics highlighted the continued clinical progress of its lead asset, RLY-2608, in trials for breast cancer and vascular malformations, alongside strategic board appointments of industry veterans Lonnel Coats and Habib Dable. The company reported a cash reserve of approximately $596 million, with a decrease in research and development expenses to $68.3 million and general and administrative expenses to $12.1 million, contributing to a reduced net loss of $74.1 million compared to the previous year. Relay Therapeutics remains focused on advancing its clinical programs and leveraging the expertise of its newly appointed board members to guide its strategic direction, with sufficient financial resources projected to fund operations into 2029.

Relay Therapeutics Expands Board with New Appointments

On November 4, 2025, Relay Therapeutics expanded its Board of Directors by appointing Lonnel Coats and Habib Dable, both former biotech CEOs with significant commercialization expertise. This strategic move aligns with the company’s ongoing efforts to advance its clinical programs, particularly the RLY-2608 trials in breast cancer and vascular malformations. Additionally, Relay reported its third quarter 2025 financial results, highlighting a net loss reduction compared to the previous year and a strong cash position of $596 million, expected to support operations into 2029.

The most recent analyst rating on (RLAY) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.

Relay Therapeutics’ Promising Phase 2 Study on RLY-2608: A Potential Game-Changer in Targeted Therapy

Relay Therapeutics Inc. is conducting a Phase 2 study titled ‘A Phase 2 Study of Mutant-selective PI3Kα Inhibitor, RLY-2608, in Adults and Children With PIK3CA Related Overgrowth Spectrum and Malformations Driven by PIK3CA Mutation.’ The study aims to evaluate the safety and efficacy of RLY-2608, a mutant-selective PI3Kα inhibitor, in treating conditions associated with PIK3CA mutations, such as PIK3CA-Related Overgrowth Spectrum (PROS) and various malformations. This study is significant as it targets a specific genetic mutation, potentially offering a more effective treatment for affected individuals.

Relay Therapeutics Reports Q2 2025 Financial Results and Progress

Relay Therapeutics, Inc. is a clinical-stage precision medicine company focused on developing small molecule therapies for cancer and genetic diseases, leveraging its innovative Dynamo® platform to target previously challenging protein targets.