Relay Therapeutics (RLAY) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• 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: 2,203,023
• 30 Day Avg. Volume: 2,176,783
• 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: $14.80
• Price Target Upside: 84.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -1.73
• Revenue Forecast (FY): $12.81M

• Rating: 59 Neutral
• Price Target: $8.00 ▼(-0.37% Downside)

Relay Therapeutics' stock score is primarily influenced by its strong technical indicators and positive corporate events, such as strategic board appointments and a solid cash position. However, significant challenges in financial performance and valuation due to ongoing losses and negative cash flow impact the overall score.

Positive Factors

Board Expansion

The addition of experienced biotech CEOs to the board enhances strategic guidance and commercialization efforts, supporting long-term growth.

Strong Cash Position

A robust cash reserve ensures financial stability and operational continuity, allowing the company to invest in R&D and strategic initiatives.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to withstand economic fluctuations and invest in growth.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates inefficiencies and potential liquidity issues, which could hinder long-term operational sustainability.

Ongoing Losses

Continued losses reflect operational inefficiencies and may limit the company's ability to invest in growth and innovation.

Revenue Volatility

Revenue volatility can complicate financial planning and investment, impacting the company's ability to achieve consistent growth.

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 primarily through partnerships and collaborations with pharmaceutical companies, where they license their technology and drug candidates for further development. This includes upfront payments, milestone payments tied to the achievement of specific development milestones, and royalties on future sales of products that result from these collaborations. The company may also receive funding from grants and government programs aimed at supporting innovative biotechnology research, contributing to its overall revenue streams. Strategic partnerships with larger pharmaceutical firms provide significant financial backing and resources, which are crucial for advancing their drug development pipeline.

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	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: 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 8.03 is above the 20-day moving average (MA) of 7.68, above the 50-day MA of 7.07, and above the 200-day MA of 4.35, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 61.97 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	61 Neutral	$1.92B	-7.74	-68.33%	―	―	-38.04%
RLAY	59 Neutral	$1.39B	-4.64	-41.14%	―	-16.50%	33.02%
TNGX	59 Neutral	$1.18B	-9.23	-51.65%	―	53.28%	21.77%
IMTX	56 Neutral	$1.33B	-8.75	-29.01%	―	-27.61%	-69.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GERN	51 Neutral	$893.70M	-11.15	-29.57%	―	522.13%	62.68%
PROK	29 Underperform	$706.96M	-4.54	―	―	―	2.35%

Relay Therapeutics Corporate Events

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.