RLX Technology Inc. Fundamental Analysis
RLX Technology Inc. (RLX) shows moderate financial fundamentals with a PE ratio of 15.94, profit margin of 22.47%, and ROE of 6.14%. The company generates $4.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RLX's fundamental strength across five key dimensions:
Efficiency Score
WeakRLX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRLX trades at attractive valuation levels.
Growth Score
ModerateRLX shows steady but slowing expansion.
Financial Health Score
ExcellentRLX maintains a strong and stable balance sheet.
Profitability Score
ModerateRLX maintains healthy but balanced margins.
Key Financial Metrics
Is RLX Expensive or Cheap?
P/E Ratio
RLX trades at 15.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RLX's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values RLX Technology Inc. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.87 times EBITDA. This signals the market has high growth expectations.
How Well Does RLX Make Money?
Net Profit Margin
For every $100 in sales, RLX Technology Inc. keeps $22.47 as profit after all expenses.
Operating Margin
Core operations generate 11.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.14 in profit for every $100 of shareholder equity.
ROA
RLX Technology Inc. generates $5.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RLX Technology Inc. generates strong operating cash flow of $1.10B, reflecting robust business health.
Free Cash Flow
RLX Technology Inc. generates strong free cash flow of $977.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.80 in free cash annually.
FCF Yield
RLX converts 6.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How RLX Stacks Against Its Sector Peers
| Metric | RLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.94 | 24.76 | Better (Cheaper) |
| ROE | 6.14% | 942.00% | Weak |
| Net Margin | 22.47% | -4882.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 8.53 | 2.40 | Strong Liquidity |
| ROA | 5.59% | 436.00% | Weak |
RLX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RLX Technology Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility