Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $779.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.31
• Revenue Growth: -76.27%
• EPS Growth: 22.77%
• Country: US
• Employees: 259
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 172,411,400
• 10 Day Avg. Volume: 1,592,030
• 30 Day Avg. Volume: 1,353,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.04
• Enterprise Value/Revenue: -3.59
• Enterprise Value/Gross Profit: 23.88
• Enterprise Value/Ebitda: 0.09
• 1Y Price Target: $13.71
• Price Target Upside: 213.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 55 Neutral
• Price Target: $4.00 ▼(-8.68% Downside)

Relay Therapeutics' overall stock score is primarily influenced by its financial performance challenges, including ongoing losses and cash flow difficulties. Technical analysis provides a neutral outlook, while valuation remains a concern due to a negative P/E ratio. However, the recent corporate event of lease termination positively impacts the score by demonstrating cost-saving measures.

Positive Factors

Strategic Leadership Change

The appointment of Claire Mazumdar brings strategic guidance as Relay prepares for its Phase 3 trial, potentially enhancing operations and market positioning.

Cost Management

The lease termination agreement reflects effective cost management, improving operational efficiency and freeing up resources for strategic initiatives.

Governance Stability

The election of directors and approval of executive compensation indicate governance stability, supporting long-term strategic goals and stakeholder confidence.

Negative Factors

Revenue Volatility

Revenue volatility poses challenges for predictable cash flow and strategic planning, impacting the company's ability to sustain growth and investment.

Cash Flow Challenges

Persistent negative cash flows highlight inefficiencies in operations, limiting the company's ability to reinvest in growth and manage financial obligations.

Profitability Issues

Ongoing profitability issues hinder Relay's capacity to generate returns, affecting its financial health and ability to sustain long-term operations.

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. While the balance sheet remains stable with low leverage, the income statement reveals significant losses and operational challenges. The cash flow statement highlights the difficulty in generating sustainable cash flows. Overall, while there are strengths in equity financing and asset management, profitability and cash generation remain critical concerns.

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	-1.26M	-305.43M	25.55M	-241.62M	-166.36M	79.11M
EBITDA	-340.36M	-380.21M	-374.15M	-306.82M	-222.18M	-52.25M
Net Income	-311.55M	-337.71M	-341.97M	-290.51M	-363.87M	-52.41M
Balance Sheet
Total Assets	728.84M	871.30M	843.98M	1.10B	1.01B	799.83M
Cash, Cash Equivalents and Short-Term Investments	113.94M	781.32M	750.09M	998.92M	958.07M	678.06M
Total Debt	34.18M	48.50M	53.47M	57.74M	22.90M	24.42M
Total Liabilities	63.18M	93.50M	91.98M	149.55M	110.64M	36.54M
Stockholders Equity	665.66M	777.79M	752.00M	950.22M	897.81M	763.29M
Cash Flow
Free Cash Flow	-262.06M	-251.13M	-304.44M	-238.55M	-77.88M	-104.42M
Operating Cash Flow	-261.42M	-249.11M	-300.32M	-229.49M	-74.41M	-102.49M
Investing Cash Flow	20.45M	-41.08M	257.63M	-188.75M	-479.51M	81.67M
Financing Cash Flow	220.34M	270.15M	34.75M	289.91M	388.09M	426.51M

Relay Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.38 is above the 20-day moving average (MA) of 4.14, above the 50-day MA of 3.77, and above the 200-day MA of 3.62, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 66.08 is Neutral, 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	58 Neutral	854.00M	-4.40	-50.24%	―	―	―
RLAY	55 Neutral	$779.30M	―	-46.24%	―	-76.27%	22.77%
GERN	49 Neutral	848.56M	-9.58	-33.91%	―	11877.28%	63.14%
IMTX	48 Neutral	890.96M	-10.08	-15.91%	―	83.36%	22.27%
TNGX	47 Neutral	867.83M	-6.00	-107.86%	―	-42.84%	-17.32%
PROK	29 Underperform	800.45M	-4.64	―	―	―	4.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Relay Therapeutics Corporate Events

Claire Mazumdar Joins Relay Therapeutics as Director

On June 8, 2025, Jami Ruben resigned from the Board of Directors and Audit Committee of Relay Therapeutics, with no disputes involved. Subsequently, on June 9, 2025, Claire Mazumdar was appointed as a Class III Director and chair of the Audit Committee. Her appointment is expected to bring strategic guidance as Relay Therapeutics prepares for its Phase 3 ReDiscover-2 trial in breast cancer, potentially impacting the company’s operations and market positioning.