NYSE:RLX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$7.3b

Last Updated

2021/08/02 22:37 UTC

Data Sources

Company Financials +

Executive Summary

RLX Technology Inc., together with its subsidiaries, researchers, develops, manufactures, distributes, and sells e-vapor products in the People's Republic of China. More Details


Snowflake Analysis

Flawless balance sheet with exceptional growth potential.

Share Price & News

How has RLX Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RLX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: RLX's weekly volatility has decreased from 17% to 10% over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

4.3%

RLX

0.2%

US Tobacco

-0.4%

US Market


1 Year Return

n/a

RLX

18.0%

US Tobacco

35.9%

US Market

Return vs Industry: Insufficient data to determine how RLX performed against the US Tobacco industry.

Return vs Market: Insufficient data to determine how RLX performed against the US Market.


Shareholder returns

RLXIndustryMarket
7 Day4.3%0.2%-0.4%
30 Day-44.8%-5.5%-0.3%
90 Day-55.8%-10.8%3.1%
1 Yearn/a27.0%18.0%38.0%35.9%
3 Yearn/a0.7%-18.8%62.9%52.7%
5 Yearn/a-1.3%-26.4%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is RLX Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RLX Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RLX ($4.65) is trading below our estimate of fair value ($22.87)

Significantly Below Fair Value: RLX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RLX is unprofitable, so we can't compare its PE Ratio to the Global Tobacco industry average.

PE vs Market: RLX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RLX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RLX is good value based on its PB Ratio (3.8x) compared to the US Tobacco industry average (8.5x).


Future Growth

How is RLX Technology forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

58.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: RLX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RLX's is expected to become profitable in the next 3 years.

Revenue vs Market: RLX's revenue (41.7% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: RLX's revenue (41.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RLX's Return on Equity is forecast to be very high in 3 years time (40.9%).


Past Performance

How has RLX Technology performed over the past 5 years?

-894.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RLX is currently unprofitable.

Growing Profit Margin: RLX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RLX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare RLX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RLX is unprofitable, making it difficult to compare its past year earnings growth to the Tobacco industry (2.4%).


Return on Equity

High ROE: RLX has a negative Return on Equity (-3.3%), as it is currently unprofitable.


Financial Health

How is RLX Technology's financial position?


Financial Position Analysis

Short Term Liabilities: RLX's short term assets (CN¥12.9B) exceed its short term liabilities (CN¥2.6B).

Long Term Liabilities: RLX's short term assets (CN¥12.9B) exceed its long term liabilities (CN¥54.9M).


Debt to Equity History and Analysis

Debt Level: RLX is debt free.

Reducing Debt: RLX had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RLX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RLX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 96.5% per year.


Dividend

What is RLX Technology current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RLX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RLX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RLX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RLX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Kate Ying (39 yo)

3.58yrs

Tenure

Ms. Wang Ying, also known as Kate, is co-founder of RLX Technology Inc. and has been its Chairperson of Board of Directors and Chief Executive Officer since January 2, 2018. Ms. Wang has also served as the...


Leadership Team

Experienced Management: RLX's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: RLX's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: RLX only recently listed within the past 12 months.


Top Shareholders

Company Information

RLX Technology Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RLX Technology Inc.
  • Ticker: RLX
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$7.304b
  • Shares outstanding: 1.57b
  • Website: https://www.relxtech.com

Number of Employees


Location

  • RLX Technology Inc.
  • Junhao Central Park Plaza
  • 19th Floor, Building 1
  • Beijing
  • 100026
  • China

Listings


Biography

RLX Technology Inc., together with its subsidiaries, researchers, develops, manufactures, distributes, and sells e-vapor products in the People's Republic of China. It serves RELX branded partner stores an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:37
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.