Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: -76.27%
• EPS Growth: 22.77%
• Country: US
• Employees: 259
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 172,411,400
• 10 Day Avg. Volume: 1,765,130
• 30 Day Avg. Volume: 1,633,133
• 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: -0.03
• Enterprise Value/Revenue: -3.59
• Enterprise Value/Gross Profit: 23.88
• Enterprise Value/Ebitda: 0.09
• 1Y Price Target: $13.71
• Price Target Upside: 102.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $6.50 ▼(-3.85% Downside)

The overall stock score for Relay Therapeutics is primarily influenced by its financial performance and technical analysis. While the company maintains a stable balance sheet, significant losses and cash flow challenges weigh heavily on its financial performance score. Technical analysis provides a more positive outlook with bullish momentum indicators. However, the poor valuation due to negative earnings and lack of dividends further impacts the overall score.

Positive Factors

Proprietary Technology

The Dynamo platform offers a competitive edge by leveraging computational techniques for drug design, potentially accelerating drug development and enhancing precision medicine capabilities.

Strategic Partnerships

Strategic partnerships provide Relay Therapeutics with funding, shared expertise, and potential revenue streams through licensing and milestone payments, supporting long-term growth and innovation.

Stable Balance Sheet

A stable balance sheet with low leverage enhances financial resilience, providing a solid foundation for future investments and operational stability despite ongoing losses.

Negative Factors

Negative Cash Flow

Negative cash flow indicates cash constraints and inefficiencies in operations, potentially limiting the company's ability to invest in growth and sustain long-term operations without external financing.

Significant Losses

Consistent losses and operational challenges hinder profitability, impacting the company's ability to reinvest in R&D and expand its drug pipeline, posing risks to long-term viability.

Revenue Volatility

Revenue volatility creates uncertainty in financial planning and can affect investor confidence, complicating efforts to achieve stable growth and secure consistent funding for drug development.

Relay Therapeutics Business Overview & Revenue Model

Company Description

Relay Therapeutics is a biotechnology company that focuses on transforming the drug discovery process through its proprietary Dynamo platform, which leverages cutting-edge computational techniques and biophysics to design targeted therapies. The company primarily operates in the field of precision medicine, aiming to treat diseases such as cancer by developing novel small molecule drugs that specifically target protein motions and dynamics. Relay Therapeutics is dedicated to advancing its pipeline of drug candidates through various stages of clinical development, focusing on high-impact therapeutic areas.

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: 6.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.76 is below the 20-day moving average (MA) of 6.81, above the 50-day MA of 5.50, and above the 200-day MA of 3.91, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, 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	55 Neutral	$1.26B	―	-88.40%	―	―	―
RLAY	54 Neutral	$1.18B	-3.52	-46.24%	―	-76.27%	22.77%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMTX	48 Neutral	$1.09B	―	-17.34%	―	83.36%	22.27%
TNGX	46 Neutral	$1.08B	―	-51.65%	―	53.28%	21.77%
GERN	46 Neutral	$733.72M	―	-29.57%	―	522.13%	62.68%
PROK	29 Underperform	$794.56M	―	―	―	―	4.97%

Relay Therapeutics Corporate Events

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.