One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Relay Therapeutics, Inc.
RLAY · NGM · Healthcare · Biotechnology
Current price
$18.87
52-week range
$3.88 - $21.27
Market cap
$4.14B
Balance sheet
Healthy
-11.20x Concerning
Net cash $880.28M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
3 Risks
0 rewards · 3 risks
- Risk Operating margin compressed from -22516.4% to -25949.7% over 3 years.
- Risk Return on equity was -36.8% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 1.6% (peer median: 2.3%).
What this company does
Relay Therapeutics, Inc.
Relay Therapeutics is a biotechnology company that uses powerful computer models to design new medicines for treating cancer and genetic diseases. Because its drugs are still in the testing phase (known as being a clinical-stage company), it doesn't make money from selling products yet. Instead, its main income comes from partnerships with larger companies like Pfizer, which pay Relay to help develop these potential new treatments.
How the company got here
Relay Therapeutics was founded in 2015 with the idea of using a deeper understanding of how proteins move and change shape to discover new drugs. For years, the technology wasn't available to fully see this constant motion, but advances in computing power and scientific tools made it possible. The company focused on this new approach to create highly targeted medicines, initially for cancer and genetic diseases. A major turning point was its initial public offering (IPO) in 2020, which made it a publicly traded company, and a significant collaboration with Genentech in 2023 to develop one of its key drug candidates.
What it actually does
Relay Therapeutics is a biotechnology company that works to develop new medicines, with a special focus on treating cancer and genetic diseases. Think of proteins in your body as tiny machines that can sometimes cause diseases if they don't work right. Relay uses powerful computers and advanced lab techniques to watch how these tiny machines move and change shape. This allows them to design very precise, small-molecule drugs (medicines that are small enough to enter cells easily) that can fix the problems with these proteins, aiming to create treatments that are more effective and have fewer side effects.
Drug Development and Clinical Trials
This is the core of Relay's business, as it does not yet have any approved products to sell. The company's main activity is research and development (R&D), which involves discovering and testing potential new medicines. Its most advanced drug candidate is called zovegalisib, which is being tested in late-stage clinical trials (the final phases of testing in people) for treating certain types of breast cancer and vascular anomalies (disorders of the blood vessels). The company also has other potential medicines in earlier stages of development for different types of cancers and for Fabry disease, a rare genetic disorder.
Collaboration and Licensing
A significant way Relay currently makes money is by partnering with larger pharmaceutical companies. In these collaborations, Relay provides access to its drug discovery technology or its drug candidates. For example, it has a major agreement with Genentech to co-develop its lead cancer drug, and another with Elevar Therapeutics for a different cancer treatment. These deals provide Relay with upfront payments and potential future payments based on the success of the drugs, which helps fund its expensive research and development activities since it doesn't have regular product sales.
What management is betting on now
Management is heavily focused on proving that its unique approach to drug discovery can lead to successful, marketable medicines. Their biggest bet is on their lead drug, zovegalisib, and getting it through the final stages of clinical trials (the process of testing new drugs on people to see if they are safe and effective) and approved by regulators. The company is also investing in its other potential drugs in the pipeline (the set of drug candidates a company is developing) to show that its technology platform can repeatedly create valuable new therapies. Successfully commercializing even one of these drugs would validate their entire scientific strategy and business model.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-75.31M
FY2024 Q4
$-57.87M
FY2025 Q1
$-73.59M
FY2025 Q2
$-55.29M
FY2025 Q3
$-62.12M
FY2025 Q4
$-44.87M
FY2026 Q2
$-54.11M
Revenue
$350.00K
Net income
$-83.71M
Diluted EPS
-0.41
Operating cash flow
$-54.11M
Free cash flow
$-54.11M
Fetching…
Sources
Revenue
$3.00M
Net income
$-73.29M
Diluted EPS
-0.41
Operating cash flow
$-51.11M
Free cash flow
—
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Sources
Revenue
$7.00M
Net income
$-54.89M
Diluted EPS
-0.31
Operating cash flow
$-44.87M
Free cash flow
$-44.87M
Fetching…
Sources
Revenue
$0.00
Net income
$-74.15M
Diluted EPS
-0.43
Operating cash flow
$-62.12M
Free cash flow
$-62.12M
Fetching…
Sources
Revenue
$677.00K
Net income
$-70.38M
Diluted EPS
-0.41
Operating cash flow
$-55.26M
Free cash flow
$-55.29M
Fetching…
Sources
Revenue
$7.68M
Net income
$-77.06M
Diluted EPS
-0.46
Operating cash flow
$-73.21M
Free cash flow
$-73.59M
Fetching…
Sources
Revenue
$0.00
Net income
$-76.00M
Diluted EPS
-0.42
Operating cash flow
$-57.87M
Free cash flow
$-57.87M
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Sources
Revenue
$0.00
Net income
$-88.11M
Diluted EPS
-0.63
Operating cash flow
$-75.08M
Free cash flow
$-75.31M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $18.87
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $880.3M - more cash than debt. Interest coverage -11.2x.
Net debt
$-880.28M
Interest coverage
-11.20x
Relay Therapeutics, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RLAY
BASELINE
Relay Therapeutics, Inc.
Total debt $30.66M Interest coverage -11.20x This is the baseline the peer rows are being compared against.
Total debt $108.00M Interest coverage -157.90x Neither company has much profit cushion over interest right now.
Total debt $66.64M Interest coverage -358.08x Neither company has much profit cushion over interest right now.
Total debt $29.31M Interest coverage -3.49x Neither company has much profit cushion over interest right now.
Total debt $1.19B Interest coverage -48.80x Neither company has much profit cushion over interest right now.
Total debt $3.37B Interest coverage -2.82x Neither company has much profit cushion over interest right now.
What you should know
The case for and against RLAY
0 Rewards
3 Risks
Rewards
Risks
-
Operating margin compressed from -22516.4% to -25949.7% over 3 years.
-
Return on equity was -36.8% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 1.6% (peer median: 2.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-11.53x
P/B
4.63x
P/S
399.54x
EV/EBITDA
-10.57x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
-25,949.7%
Net margin
0.0%
ROE
-36.8%
ROA
-22.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
18.27x
Quick ratio
17.93x
Total debt
$30.66M
Total cash
$910.93M
Growth
How the business has been compounding
Revenue TTM
$10.35M
Revenue 5Y CAGR
50.1%
EPS TTM
-1.56
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-212.21M
Free CF TTM
$-235.87M
FCF margin
-2,279.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—