company background image
RLX

RLX TechnologyNYSE:RLX Stock Report

Market Cap

US$7.4b

7D

22.4%

1Y

n/a

Updated

28 Nov, 2021

Data

Company Financials +
RLX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance4/6
Financial Health6/6
Dividends0/6

RLX Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for RLX Technology
Historical stock prices
Current Share PriceUS$5.51
52 Week HighUS$35.00
52 Week LowUS$3.70
Beta0
1 Month Change13.37%
3 Month Change7.41%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-81.33%

Recent News & Updates

Oct 14

With Double-Digit Sales Growth, RLX Technology Is A Buy

RLX offers e-vapor products with various value-added features. If the management continues to invest in R&D, I expect that the RLX will be able to offer more products. As a result, the revenue line will most likely increase. In my opinion, if the company comes out with different formulae to use in the e-vapor products, the quality of its products may increase. I believe in the likelihood of sales growth of 15% from 2026 to 2030, CFO/Sales of 30%, and the Capex/Sales ratio of -1%. With these numbers, the FCF margin would stand at 29%, and the 2030 FCF would be equal to RMB20 billion. The company’s EV/FCF stands at close to 10x. I used an exit multiple of 7x because I don’t really know what the company’s business model will be in 2031. I also want to be very moderate while choosing my figures.

Aug 20

RLX Technology: The Stock Is Broken

Q2 earnings were positive. The company is investing in more research and safety while improving its ability to market to its target audience. The risk here is entirely regulatory and that pressure will persist at least another quarter.

Shareholder Returns

RLXUS TobaccoUS Market
7D22.4%15.3%-2.7%
1Yn/a9.6%21.3%

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.

Price Volatility

Is RLX's price volatile compared to industry and market?
RLX volatility
RLX Average Weekly Movement13.6%
Tobacco Industry Average Movement13.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: RLX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: RLX's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2018725Kate Yinghttps://www.relxtech.com

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 and other retail outlets through distributors. The company was founded in 2018 and is based in Beijing, China.

RLX Technology Fundamentals Summary

How do RLX Technology's earnings and revenue compare to its market cap?
RLX fundamental statistics
Market CapCN¥47.40b
Earnings (TTM)CN¥328.36m
Revenue (TTM)CN¥7.68b

144.4x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RLX income statement (TTM)
RevenueCN¥7.68b
Cost of RevenueCN¥4.30b
Gross ProfitCN¥3.38b
ExpensesCN¥3.05b
EarningsCN¥328.36m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Dec 03, 2021

Earnings per share (EPS)0.24
Gross Margin44.05%
Net Profit Margin4.28%
Debt/Equity Ratio0%

How did RLX perform over the long term?

See historical performance and comparison

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 ($5.51) is trading below our estimate of fair value ($62.62)

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


Price To Earnings Ratio

PE vs Industry: RLX is poor value based on its PE Ratio (144.4x) compared to the Global Tobacco industry average (13.8x).

PE vs Market: RLX is poor value based on its PE Ratio (144.4x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: RLX is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: RLX is good value based on its PB Ratio (3.7x) compared to the US Tobacco industry average (5.1x).


Future Growth

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

63.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLX's forecast earnings growth (63.3% per year) is above the savings rate (2%).

Earnings vs Market: RLX's earnings (63.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RLX's revenue (43.2% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: RLX's revenue (43.2% 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 high in 3 years time (37.1%)


Past Performance

How has RLX Technology performed over the past 5 years?

499.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RLX has high quality earnings.

Growing Profit Margin: RLX's current net profit margins (4.3%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: RLX has become profitable over the past 5 years.

Accelerating Growth: Insufficient data to compare RLX's past year earnings growth to its 5-year average.

Earnings vs Industry: RLX earnings growth over the past year (499.3%) exceeded the Tobacco industry 5.8%.


Return on Equity

High ROE: RLX's Return on Equity (2.6%) is considered low.


Financial Health

How is RLX Technology's financial position?


Financial Position Analysis

Short Term Liabilities: RLX's short term assets (CN¥13.4B) exceed its short term liabilities (CN¥3.3B).

Long Term Liabilities: RLX's short term assets (CN¥13.4B) exceed its long term liabilities (CN¥55.0M).


Debt to Equity History and Analysis

Debt Level: RLX is debt free.

Reducing Debt: RLX had no debt 5 years ago.

Debt Coverage: RLX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RLX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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?

3.2yrs

Average management tenure


CEO

Kate Ying (39 yo)

3.83yrs

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 (3.2 years average tenure).


Board Members

Experienced Board: RLX's board of directors are not considered experienced ( 1.1 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 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$7.416b
  • Shares outstanding: 1.35b
  • Website: https://www.relxtech.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 23:22
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
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.