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Relay Therapeutics (RLAY)
NASDAQ:RLAY
US Market

Relay Therapeutics (RLAY) AI Stock Analysis

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Relay Therapeutics

(NASDAQ:RLAY)

Rating:54Neutral
Price Target:
$3.50
▼(-2.78%Downside)
Relay Therapeutics' overall score is driven by a stable but challenged financial position, with ongoing losses impacting profitability. The technical analysis provides some positive short-term signals, but valuation concerns persist due to a negative P/E ratio and high volatility. The corporate event of a lease termination is favorable, indicating strategic cost management and boosting sentiment.
Positive Factors
Clinical Trials
The company's pipeline remains on track with significant upcoming catalysts in clinical trials.
Financial Stability
The reduction in workforce is expected to extend the cash runway into 2029, improving financial stability.
Negative Factors
Financial Concerns
Concerns are raised about the financial sustainability of Relay Therapeutics Inc due to high research and development expenses.
Stock 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.

Relay Therapeutics (RLAY) vs. SPDR S&P 500 ETF (SPY)

Relay Therapeutics Business Overview & Revenue Model

Company DescriptionRelay 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 MoneyRelay 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 shows a stable balance sheet with low leverage, but faces significant challenges in profitability and cash flow generation. The negative net income and cash flows, along with operational inefficiencies, are critical concerns despite asset management strengths.
Income Statement
45
Neutral
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
55
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.68M10.01M25.55M1.38M3.03M82.65M
Gross Profit-933.00K4.54M20.28M-2.75M-896.00K79.11M
EBITDA-372.12M-372.47M-374.15M-306.82M-222.18M-52.25M
Net Income-333.39M-337.71M-341.97M-254.26M-496.81M-49.01M
Balance Sheet
Total Assets799.36M871.30M843.98M1.10B1.01B799.83M
Cash, Cash Equivalents and Short-Term Investments93.54M781.32M750.09M998.92M958.07M678.06M
Total Debt47.16M48.50M53.47M57.74M22.90M24.42M
Total Liabilities78.28M93.50M91.98M149.55M110.64M36.54M
Stockholders Equity721.08M777.79M752.00M950.22M897.81M763.29M
Cash Flow
Free Cash Flow-272.62M-251.13M-304.44M-238.55M-77.88M-104.42M
Operating Cash Flow-271.99M-249.11M-300.32M-229.49M-74.41M-102.49M
Investing Cash Flow-9.15M-41.08M257.63M-188.75M-479.51M81.67M
Financing Cash Flow221.23M270.15M34.75M289.91M388.09M426.51M

Relay Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.60
Price Trends
50DMA
3.16
Positive
100DMA
3.17
Positive
200DMA
4.32
Negative
Market Momentum
MACD
0.10
Negative
RSI
62.38
Neutral
STOCH
83.86
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 3.6 is above the 20-day moving average (MA) of 3.33, above the 50-day MA of 3.16, and below the 200-day MA of 4.32, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.86 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$545.51M-31.46%6.11%-37.79%
54
Neutral
$603.49M-45.46%-78.26%15.41%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
51
Neutral
$428.01M-278.55%-22.76%-46.69%
46
Neutral
$541.81M0.71%91657.69%97.21%
41
Neutral
$516.89M-27.04%6.72%
$801.30M
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RLAY
Relay Therapeutics
3.60
-2.76
-43.40%
PGEN
Precigen
1.61
0.19
13.38%
TBPH
Theravance Biopharma
11.05
2.29
26.14%
KROS
Keros Therapeutics
13.41
-28.80
-68.23%
TYRA
Tyra Bioscience
10.05
-7.05
-41.23%
SION
Sionna Therapeutics, Inc.
20.87
-1.37
-6.16%

Relay Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Claire Mazumdar Joins Relay Therapeutics as Director
Neutral
Jun 11, 2025

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.

The most recent analyst rating on (RLAY) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Relay Therapeutics Holds 2025 Annual Stockholder Meeting
Neutral
Jun 6, 2025

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.

The most recent analyst rating on (RLAY) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.

Business Operations and Strategy
Relay Therapeutics Announces Lease Termination Agreement
Positive
Jun 4, 2025

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.

The most recent analyst rating on (RLAY) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Relay Therapeutics stock, see the RLAY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 19, 2025