RLX Technology (RLX)
NYSE:RLX
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RLX Technology
(NYSE:RLX)
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Rating:74Outperform
Price Target:
$3.00
▲(43.54% Upside)
Action:UpgradedDate:11/18/25
RLX Technology's overall stock score of 74 reflects a strong financial profile with robust revenue growth, minimal leverage, and healthy cash flows as the primary drivers. Positive earnings call sentiment, with significant international revenue growth, further supports the score. However, a high P/E ratio and potential overbought technical signals introduce some caution, tempering the outlook.
Positive Factors
International Market Success
Strong international market presence, particularly in Asia Pacific and Europe, enhances RLX's competitive position and revenue diversification.
Negative Factors
Challenges in Mainland China
Struggles in Mainland China due to market challenges could hinder overall growth and require strategic adjustments.
Read all positive and negative factors
Positive Factors
Negative Factors
International Market Success
Strong international market presence, particularly in Asia Pacific and Europe, enhances RLX's competitive position and revenue diversification.
Read all positive factors
RLX Technology (RLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.55B
Dividend Yield0.35%
Average Volume (3M)2.53M
Price to Earnings (P/E)22.2
Beta (1Y)0.52
Revenue Growth51.49%
EPS Growth21.43%
CountryUS
Employees381
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)0.02
Shares Outstanding909,728,640
10 Day Avg. Volume2,354,469
30 Day Avg. Volume2,527,786
Financial Highlights & Ratios
PEG Ratio2.82
Price to Book (P/B)1.21
Price to Sales (P/S)7.95
P/FCF Ratio23.07
Enterprise Value/Market Cap4.75
Enterprise Value/Revenue3.69
Enterprise Value/Gross Profit11.57
Enterprise Value/Ebitda55.41
Forecast
1Y Price Target
$2.50Price Target Upside19.62% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.96
Revenue Forecast (FY)$5.43B
RLX Technology Business Overview & Revenue Model
Company Description
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 distributor...
How the Company Makes Money
RLX Technology generates revenue through the sale of its vaping devices, e-liquids, and related accessories. The company employs a direct-to-consumer sales model, as well as partnerships with retail distributors to reach a broader audience. Key re...
RLX Technology Earnings Call Summary
Earnings Call Date:Mar 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 15, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, margin expansion, sustained profitability, a fortress-like balance sheet (RMB 15.73 billion / ~USD 2.2 billion), and rapid international expansion (76.5% of Q4 revenue) driven by disciplined execution and AI-enabled operating leverage. Key challenges include ASP pressure from product-mix shifts, regional retail value contraction (notably the U.K.), regulatory and tax uncertainties, and near-term supply ramp constraints for new product categories. Overall, the positive financial results, cash generation, shareholder returns and broad global momentum substantially outweigh the manageable regulatory and mix-related headwinds.Positive Updates
Strong Revenue Growth
Fourth quarter net revenues reached RMB 1.14 billion, up 40.3% year-over-year; full year net revenues grew 44% to RMB 3.96 billion.
Negative Updates
Industry ASP Pressure from Product Mix Shift
In 2025 the industry experienced pressure on average selling price per millimeter due to a shift from single-use disposables toward lower-cost pod and refillable systems, impacting category retail value even as volumes recover.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Fourth quarter net revenues reached RMB 1.14 billion, up 40.3% year-over-year; full year net revenues grew 44% to RMB 3.96 billion.
Read all positive updates
Company Guidance
The company guided that for 2026 it expects the broader international industry to grow at double digits while RLX aims to grow significantly faster, with volume and revenue growth to align and early results from geographic expansions expected in H1 2026; management reiterated Europe as a top strategic priority ahead of the U.K. excise tax in Oct 2026 and said it will continue disciplined capital allocation—maintaining a fortress-like balance sheet (RMB 15.73 billion / ~USD 2.2 billion), negative 15 days cash conversion cycle, and RMB 1.1 billion operating cash flow for FY2025—while returning capital (over USD 500 million to date: USD 330 million repurchases, USD 171 million dividends) and targeting dividend distribution of non‑GAAP net profit; FY2025 results cited as context included Q4 net revenues RMB 1.14 billion (+40.3% YoY), FY net revenues RMB 3.96 billion (+44%), Q4 gross margin 31.4% (vs. 27% a year ago), FY non‑GAAP operating income RMB 570 million, Q4 non‑GAAP operating profit RMB 158 million, and FY non‑GAAP net income RMB 1.16 billion, with international sales at 76.5% of Q4 revenue and specific execution wins such as 425 franchise stores, >20% specialty store share and >200% channel revenue growth in East Asia.RLX Technology Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
85
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.27B | 2.44B | 1.24B | 5.33B | 8.52B | 3.82B |
| Gross Profit | 1.05B | 726.52M | 387.71M | 2.31B | 3.67B | 1.53B |
| EBITDA | 218.22M | -60.63M | -400.11M | 1.14B | 2.34B | 36.22M |
| Net Income | 764.28M | 551.84M | 534.33M | 1.44B | 2.02B | -128.10M |
Balance Sheet | ||||||
| Total Assets | 17.43B | 16.87B | 16.32B | 16.38B | 16.37B | 620.80M |
| Cash, Cash Equivalents and Short-Term Investments | 8.47B | 8.49B | 8.11B | 10.79B | 12.85B | 523.17M |
| Total Debt | 165.46M | 58.50M | 94.96M | 85.92M | 184.81M | 155.74M |
| Total Liabilities | 1.24B | 881.10M | 716.68M | 838.45M | 2.85B | 390.11M |
| Stockholders Equity | 16.10B | 15.99B | 15.61B | 15.57B | 13.51B | 230.68M |
Cash Flow | ||||||
| Free Cash Flow | 1.28B | 842.09M | 166.29M | 448.19M | 1.66B | 2.57B |
| Operating Cash Flow | 1.29B | 854.35M | 198.70M | 486.83M | 1.80B | 2.59B |
| Investing Cash Flow | -245.77M | 3.02B | 2.09B | -4.13B | -7.87B | -1.81B |
| Financing Cash Flow | -813.08M | -678.03M | -1.19B | -477.27M | 9.90B | 174.88M |
RLX Technology Technical Analysis
Negative
2.09
Price Trends
2.28
Negative
2.27
Negative
2.27
Negative
Market Momentum
-0.05
Positive
36.57
Neutral
14.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLX, the sentiment is Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.28, and below the 200-day MA of 2.27, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLX.
RLX Technology Risk Analysis
RLX Technology disclosed 91 risk factors in its most recent earnings report. RLX Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may engage in acquisitions, investments or strategic alliances, which could require significant management attention and materially and adversely affect our business and results of operations. Q4, 2023
2.
Failure to respond to changes in the regulatory environment in China could materially and adversely affect us. Q4, 2023
3.
Our business is subject to a large number of laws across many jurisdictions, many of which are evolving. Q4, 2023
RLX Technology Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.55B | 22.23 | 5.73% | 0.35% | 51.49% | 21.43% | |
69 Neutral | $126.36B | 7.23 | 16.33% | 5.22% | 0.48% | ― | |
69 Neutral | $251.01B | 21.99 | -103.69% | 3.59% | 7.72% | -12.45% | |
66 Neutral | $112.65B | 13.92 | -215.18% | 7.02% | -0.96% | -11.42% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.60B | 34.13 | 20.84% | 0.28% | 6.71% | 8.16% | |
42 Neutral | $100.26M | -6.07 | -2384.12% | ― | -20.13% | -88.66% |
* Consumer Defensive Sector Average
RLX
RLX Technology
2.09
0.49
30.30%
MO
Altria Group
67.38
14.00
26.24%
BTI
British American Tobacco
58.81
19.22
48.55%
PM
Philip Morris
160.45
8.25
5.42%
TPB
Turning Point Brands
83.56
26.84
47.33%
ISPR
Ispire Technology, Inc.
1.75
-1.36
-43.73%
RLX Technology Corporate Events
RLX Technology Extends US$500 Million Share Buyback Program Through 2027
Dec 31, 2025
On December 31, 2025, RLX Technology announced that its board of directors had approved a further 24‑month extension of its existing US$500 million share repurchase program, pushing the program’s expiry to December 31, 2027. Originally...
RLX Technology Reports Strong Q3 2025 Financial Results and Announces Dividend
Nov 14, 2025
RLX Technology announced its unaudited financial results for the third quarter of 2025, reporting a significant increase in net revenues and profitability compared to the same period in 2024. The company’s net revenues rose by 49.3% year-ove...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.