Relay Therapeutics Inc. Common Stock (RLAY)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Relay as a Graham-style analyst, not a scientist. It is a clinical-stage precision-medicine company with 202 employees and a lead candidate, RLY-2608. The reported financials show a business not yet commercially proven: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was only $350,000 and net loss was $83.7 million, or diluted EPS of -$0.41. For FY2025, revenue was $15.4 million and net loss was $276.5 million; FY2024 and FY2023 net losses were $337.7 million and $342.0 million. These are not earnings that can support a $3.8 billion market cap on Graham arithmetic. At the 2026-10-13 close of $17.36, FairStock calculations show a P/E of -11.13, P/B of 4.27, ROE of -36.77%, and ROCE of -22.88%. Trailing free cash flow is -$212.2 million, a -5.6% FCF yield. On the plus side, debt is tiny, with D/E of 0.03, and FairStock's Altman Z-score is 27.11, suggesting near-term balance-sheet distress is not the main issue. The FairStock Piotroski F-score is 3/9, confirming weak fundamentals. The Lynch category is none—losses in each of the last four years. I see no durable moat in the numbers; any competitive advantage is an unproven pipeline option. Growth is a gamble on trials, not a demonstrated earnings stream. Buffett would want durable earnings and a margin of safety; here intrinsic value is speculative.

In plain English: Relay Therapeutics is a healthcare company that is testing experimental medicines for cancer and genetic diseases. It is not yet selling products at meaningful scale and is losing large amounts of money. At $17.36 on October 13, 2026, the stock looks very expensive compared with its tiny sales and losses.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer