tiprankstipranks
Trending News
More News >
Relay Therapeutics (RLAY)
NASDAQ:RLAY
US Market

Relay Therapeutics (RLAY) AI Stock Analysis

Compare
457 Followers

Top Page

RL

Relay Therapeutics

(NASDAQ:RLAY)

46Neutral
Relay Therapeutics exhibits significant challenges, with ongoing losses and negative cash flow impacting its financial performance. Technical analysis suggests a bearish trend, and valuation metrics are unfavorable due to the absence of positive earnings and dividend yield. These factors contribute to a below-average stock score, reflecting the company's current financial and market position.
Positive Factors
Cash Reserves and Financial Planning
The company reported cash and cash equivalents of $781mn, which they estimate provides cash runway to the second half of 2027.
Clinical Trial Advancements
The combination of RLY-2608 and Faslodex achieved a 38.7% objective response rate in patients with PIK3CA-mutant, HR+/HER2- metastatic breast cancer, indicating promising efficacy.
Drug Development and Innovation
Relay Therapeutics Inc is gaining attention due to its innovative approach in drug development.
Negative Factors
Competitive Landscape
The competitive landscape in the biotechnology sector poses a challenge for Relay Therapeutics' market position.
Equity Raises and Financial Sustainability
Analyst continues to model multiple serial equity raises to fund the advancing pipeline and commercial infrastructure.
Operational Challenges
The delay in the early pipeline has led to a decrease in the price target from $18 to $14.

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

Relay Therapeutics Business Overview & Revenue Model

Company DescriptionRelay Therapeutics, Inc. (RLAY) is a biotechnology company that focuses on developing precision medicines for patients with debilitating diseases. The company's approach integrates computational and experimental technologies to design novel therapeutics, primarily targeting areas such as oncology. By leveraging a proprietary platform that combines protein motion analysis with drug discovery, Relay Therapeutics aims to address significant unmet medical needs.
How the Company Makes MoneyRelay Therapeutics generates revenue primarily through collaboration and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments, and royalties based on the successful development and commercialization of drugs. Additionally, the company invests in developing its proprietary drug candidates, which could lead to future revenues upon regulatory approval and market launch. Strategic partnerships and licensing deals are pivotal to Relay Therapeutics’ revenue model, allowing them to capitalize on their innovative drug discovery platform.

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
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.02M10.01M25.55M1.38M3.03M82.65M
Gross Profit
-104.66M10.01M20.28M-2.75M-896.00K79.11M
EBIT
-268.98M-372.47M-373.00M-299.27M-364.70M-55.80M
EBITDA
-267.40M-380.21M-374.15M-306.82M-222.18M-52.25M
Net Income Common Stockholders
-256.56M-337.71M-341.97M-254.26M-496.81M-49.01M
Balance SheetCash, Cash Equivalents and Short-Term Investments
781.32M781.32M750.09M998.92M958.07M678.06M
Total Assets
871.30M871.30M843.98M1.10B1.01B799.83M
Total Debt
48.50M48.50M53.47M57.74M22.90M24.42M
Net Debt
-75.78M-75.78M-90.27M-941.17M-935.17M-423.22M
Total Liabilities
93.50M93.50M91.98M149.55M110.64M36.54M
Stockholders Equity
777.79M777.79M752.00M950.22M897.81M763.29M
Cash FlowFree Cash Flow
-206.44M-251.13M-304.44M-238.55M-77.88M-104.42M
Operating Cash Flow
-199.17M-249.11M-300.32M-229.49M-74.41M-102.49M
Investing Cash Flow
-340.95M-41.08M257.63M-188.75M-479.51M81.67M
Financing Cash Flow
387.79M270.15M34.75M289.91M388.09M426.51M

Relay Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.93
Price Trends
50DMA
3.16
Negative
100DMA
3.84
Negative
200DMA
5.39
Negative
Market Momentum
MACD
-0.13
Negative
RSI
54.11
Neutral
STOCH
93.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLAY, the sentiment is Neutral. The current price of 2.93 is above the 20-day moving average (MA) of 2.53, below the 50-day MA of 3.16, and below the 200-day MA of 5.39, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 93.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
54
Neutral
$563.41M-41.46%2250.99%3.52%
51
Neutral
$5.20B3.18-40.80%2.96%17.66%1.94%
48
Neutral
$465.51M-29.04%12.12%-19.00%
46
Neutral
$496.70M-44.15%-60.83%14.13%
46
Neutral
$449.89M-136.30%-36.95%-22.68%
38
Underperform
$502.76M-31.60%6.72%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RLAY
Relay Therapeutics
3.11
-3.24
-51.02%
PGEN
Precigen
1.62
0.20
14.08%
TBPH
Theravance Biopharma
9.31
0.14
1.53%
KROS
Keros Therapeutics
13.89
-42.35
-75.30%
TYRA
Tyra Bioscience
9.47
-6.53
-40.81%

Relay Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Relay Therapeutics Highlights Progress at Healthcare Conference
Positive
Jan 13, 2025

Relay Therapeutics announced participation in the 43rd Annual J.P. Morgan Healthcare Conference, highlighting progress in their clinical programs, notably the RLY-2608, aimed at breast cancer. The company anticipates starting pivotal trials and clinical data updates in 2025, supported by a strong financial position and extensive global clinical experience, targeting significant market opportunities in the oncology sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.