Relay Therapeutics, Inc. (RLAY)
Biological Products, (No Diagnostic Substances) · Biological Products, (No Diagnostic Substances) · NASDAQ
$18.49
+2.44%
Investru Score
39.7 / 100
Weak
Why is RLAY moving?
RLAY is up 2.44% today, amid an otherwise sideways trend.
Recent coverage: Raymond James Updates Healthcare Top Picks for October
Business overview
- The company operates in the biological products industry focusing on novel therapeutic solutions.
- Operations are characteristic of an early-stage clinical biotechnology enterprise relying on pipeline development.
These business characteristics reflect a high-risk, high-reward operating model typical of pre-commercial biotech firms.
Bull case
Relay Therapeutics could achieve significant upside if its robust top-line revenue growth of 53.4% continues and pipeline developments validate its therapeutic platform. Strong short-term liquidity, as indicated by a current ratio of 22.61, provides the financial runway needed to advance clinical programs.
Bear case
Deeply negative operating and net margins combined with a negative free cash flow yield of -7.3% expose the company to significant capital burn risks. A high valuation multiple leaves little margin for error if revenue growth decelerates from its current rate.
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Score breakdown
- Financial Quality
- 19
- Growth
- 73
- Profitability
- 20
- Balance Sheet
- 60
- Valuation
- 27
- Momentum
- 42
Financial quality
- Return on equity is -48.8%.
- Earnings quality stands at 0.85.
- Free cash flow margin is -1536.1%.
These financial quality figures highlight heavy capital consumption and significant losses relative to equity.
- ROIC
- Data unavailable
- ROE
- -48.8%
- FCF Margin
- -1536.1%
- Free Cash Flow (TTM)
- $-0.2B
- Earnings Quality (OCF ÷ Net Income)
- 0.9x
Valuation
- Price-to-sales ratio is 798.32.
- Free cash flow yield is -7.3%.
These valuation indicators suggest an exceptionally high sales multiple coupled with negative cash generation, reflecting speculative market pricing.
- P/E (TTM)
- Data unavailable
- Forward P/E
- Data unavailable
- PEG (P/E ÷ EPS Growth)
- Data unavailable
- Company Median PEG
- Data unavailable
- Price / Sales
- 798.3x
- EV / EBITDA
- Data unavailable
- FCF Yield
- -7.3%
Key risks
- Operating and net margins remain deeply negative, potentially draining available cash reserves over time.(Probability: High · Impact: High)
- A very high price-to-sales ratio leaves the valuation vulnerable to sharp contractions if growth slows.(Probability: Medium · Impact: High)
- A sideways technical trend combined with an RSI of 47.05 indicates a lack of near-term buying momentum.(Probability: Medium · Impact: Medium)
Latest earnings
- Q2 FY26 EPS
- $-0.41
- Estimate
- $-0.40
- Surprise
- -2.8%
- Earnings per share growth year-over-year is 31.8%.
- Earnings quality is 0.85.
These earnings metrics reflect relative improvement in bottom-line comparisons supported by acceptable earnings quality despite persistent losses.
SEC filings
- 10-Q · Q2 FY26 · period ended 2026-06-30Filed 2026-08-06
- 10-Q · Q1 FY26 · period ended 2026-03-31Filed 2026-05-05
- 10-K · FY25 · period ended 2025-12-31Filed 2026-02-26
- 10-Q · Q3 FY25 · period ended 2025-09-30Filed 2025-11-06
- 10-Q · Q2 FY25 · period ended 2025-06-30Filed 2025-08-07
- 10-K · FY24 · period ended 2024-12-31Filed 2025-02-26
- 10-K · FY23 · period ended 2023-12-31Filed 2024-02-22
- 10-K · FY22 · period ended 2022-12-31Filed 2023-02-23
- 10-K · FY21 · period ended 2021-12-31Filed 2022-02-24
Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.
Market cap $3.2B · 52-week range $5.17–$21.27 · market data as of Oct 1, 2026, 4:00 PM ET · latest SEC filing: 2026-08-06
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Analyze RLAY with Investru AINot investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.