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RLX

RLX Technology NYSE:RLX Stock Report

Last Price

US$2.32

Market Cap

US$3.6b

7D

0%

1Y

-74.4%

Updated

26 Jun, 2022

Data

Company Financials +
RLX fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
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.

Rewards

Trading at 89.5% below our estimate of its fair value

Earnings are forecast to grow 10.44% per year

Became profitable this year

Risk Analysis

No risks detected for RLX from our risk checks.

RLX Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RLX Technology
Historical stock prices
Current Share PriceUS$2.32
52 Week HighUS$9.10
52 Week LowUS$1.16
Beta0
1 Month Change14.29%
3 Month Change16.58%
1 Year Change-74.39%
3 Year Changen/a
5 Year Changen/a
Change since IPO-92.14%

Recent News & Updates

May 09
Here's What's Concerning About RLX Technology's (NYSE:RLX) Returns On Capital

Here's What's Concerning About RLX Technology's (NYSE:RLX) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

RLXUS TobaccoUS Market
7D0%3.3%6.6%
1Y-74.4%-65.3%-18.4%

Return vs Industry: RLX underperformed the US Tobacco industry which returned -65.3% over the past year.

Return vs Market: RLX underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is RLX's price volatile compared to industry and market?
RLX volatility
RLX Average Weekly Movement11.5%
Tobacco Industry Average Movement12.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: RLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: RLX's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20181,235Kate 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. RLX Technology Inc. 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¥24.02b
Earnings (TTM)CN¥3.00b
Revenue (TTM)CN¥7.84b

8.0x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RLX income statement (TTM)
RevenueCN¥7.84b
Cost of RevenueCN¥4.61b
Gross ProfitCN¥3.22b
Other ExpensesCN¥227.97m
EarningsCN¥3.00b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.94
Gross Margin41.15%
Net Profit Margin38.24%
Debt/Equity Ratio0.7%

How did RLX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RLX?

Other financial metrics that can be useful for relative valuation.

RLX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA4.1x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does RLX's PE Ratio compare to its peers?

RLX PE Ratio vs Peers
The above table shows the PE ratio for RLX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.1x
VGR Vector Group
11.1xn/aUS$1.7b
UVV Universal
16.9xn/aUS$1.5b
TPB Turning Point Brands
10.4x13.7%US$531.6m
MO Altria Group
26.2x9.0%US$78.6b
RLX RLX Technology
8x10.4%US$3.6b

Price-To-Earnings vs Peers: RLX is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (16.1x).


Price to Earnings Ratio vs Industry

How does RLX's PE Ratio compare vs other companies in the Global Tobacco Industry?

Price-To-Earnings vs Industry: RLX is good value based on its Price-To-Earnings Ratio (8x) compared to the Global Tobacco industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

What is RLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RLX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: RLX is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (23.9x).


Share Price vs Fair Value

What is the Fair Price of RLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RLX ($2.32) is trading below our estimate of fair value ($22.07)

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


Price to Earnings Growth Ratio

PEG Ratio: RLX is good value based on its PEG Ratio (0.8x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLX's forecast earnings growth (10.4% per year) is above the savings rate (1.9%).

Earnings vs Market: RLX's earnings (10.4% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: RLX's earnings are forecast to grow, but not significantly.

Revenue vs Market: RLX's revenue (21.6% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: RLX's revenue (21.6% 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 low in 3 years time (11.6%).


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Past Performance

How has RLX Technology performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


93.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RLX has high quality earnings.

Growing Profit Margin: RLX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RLX's earnings have grown significantly by 93.3% per year over the past 5 years.

Accelerating Growth: RLX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RLX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tobacco industry (6.9%).


Return on Equity

High ROE: RLX's Return on Equity (22%) is considered high.


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Financial Health

How is RLX Technology's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RLX's short term assets (CN¥11.6B) exceed its short term liabilities (CN¥2.3B).

Long Term Liabilities: RLX's short term assets (CN¥11.6B) exceed its long term liabilities (CN¥95.5M).


Debt to Equity History and Analysis

Debt Level: RLX has more cash than its total debt.

Reducing Debt: Insufficient data to determine if RLX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RLX's debt is well covered by operating cash flow (1280.5%).

Interest Coverage: RLX earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RLX has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Kate Ying (39 yo)

4.42yrs

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 (3.8 years average tenure).


Board Members

Experienced Board: RLX's board of directors are not considered experienced ( 1.7 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: Shareholders have not been meaningfully diluted in the past year.


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
  • Implied Market Cap: US$3.591b
  • Shares outstanding: 1.55b
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.