Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $618.96M
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: -76.27%
• EPS Growth: 22.77%
• Country: US
• Employees: 259
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 172,411,400
• 10 Day Avg. Volume: 936,213
• 30 Day Avg. Volume: 2,205,690
• 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: -0.05
• Enterprise Value/Revenue: -3.59
• Enterprise Value/Gross Profit: 23.88
• Enterprise Value/Ebitda: 0.09
• 1Y Price Target: $13.71
• Price Target Upside: 233.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 55 Neutral
• Price Target: $4.00 ▼(-2.68% 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

Clinical Trials

The initiation of the Ph3 ReDiscover-2 trial is a key highlight, showing steady progress and aligning with Relay's guidance.

Financial Position

Relay Therapeutics has a strong cash position of $657M, providing financial stability and supporting operations into 2029.

Net Loss

The company recorded a net loss per share that was narrower than originally estimated.

Negative Factors

Clinical Risks

Risks include negative clinical data, slower than expected development timelines, and setbacks in later-stage trials.

Market Performance

The stock is down -20% vs XBI -8% YTD, likely due to a lack of clinical catalysts in the upcoming 12 months and macro.

Price Target Revision

Relay Therapeutics' target price was revised down from $19 to $17.

Relay Therapeutics Business Overview & Revenue Model

Company Description

Relay Therapeutics, Inc. (RLAY) is a biotechnology company primarily focused on transforming the drug discovery process by leveraging an innovative integration of computational and experimental approaches. The company operates within the pharmaceutical and biotech sectors, and its core products include small molecule therapies aimed at treating cancers and other genetic diseases. Relay Therapeutics employs a platform that combines computational physics, chemistry, and biology to predict and visualize protein motion, which guides the design of targeted therapies.

How the Company Makes Money

Relay Therapeutics generates revenue through a combination of collaborative partnerships, licensing agreements, and its proprietary drug development pipeline. The company partners with other pharmaceutical firms to co-develop and commercialize therapies, sharing the potential profits while mitigating risks and costs associated with drug development. Additionally, Relay Therapeutics may receive milestone payments and royalties from its partners based on the successful development and commercialization of partnered therapies. As the company's own drug candidates advance through clinical trials, successful commercialization of these drugs would provide significant revenue streams through sales. Furthermore, Relay Therapeutics might engage in strategic collaborations that can offer upfront payments, research funding, and other financial incentives, contributing to its overall earnings.

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: 4.11
• 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 4.11 is above the 20-day moving average (MA) of 3.51, above the 50-day MA of 3.55, and above the 200-day MA of 3.67, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 79.90 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
TBPH	66 Neutral	$697.00M	58.72	6.23%	―	24.49%	―
KROS	66 Neutral	$638.47M	50.30	3.33%	―	85820.30%	―
PGEN	61 Neutral	$1.34B	―	-668.03%	―	-1.12%	20.77%
RLAY	55 Neutral	$618.96M	―	-46.24%	―	-76.27%	22.77%
Sector *	51 Neutral	$7.90B	-0.33	-41.69%	2.23%	23.45%	-1.99%
TYRA	41 Neutral	$667.81M	―	-31.21%	―	―	-5.63%
SION	―	$1.12B	―		―	―	―

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.

Relay Therapeutics Holds 2025 Annual Stockholder Meeting

On June 6, 2025, Relay Therapeutics held its 2025 Annual Meeting of Stockholders, where three key proposals were voted on. The stockholders elected Alexis Borisy and Mark Murcko, Ph.D., as class II directors for a three-year term, approved executive compensation on a non-binding advisory basis, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder confidence.

Relay Therapeutics Announces Lease Termination Agreement

On June 3, 2025, Relay Therapeutics, Inc. announced a lease amendment with ARE MA Region No. 58, LLC, which will accelerate the termination of its Binney Street Lease in Cambridge, Massachusetts. This strategic move involves transitioning to a smaller office space at Kendall Square, resulting in a significant reduction of approximately $16 million in rent expenses over the lease commitments. The company continues to maintain its corporate headquarters at 60 Hampshire Street, Cambridge.