RLX Technology (RLX) AI Stock Analysis

• Market Cap: $2.95B
• Dividend Yield: 0.33%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.56
• Revenue Growth: 61.64%
• EPS Growth: 16.76%
• Country: US
• Employees: 381
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 0.02
• Shares Outstanding: 909,728,640
• 10 Day Avg. Volume: 1,864,483
• 30 Day Avg. Volume: 2,548,507
• PEG Ratio: 2.82
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 7.95
• P/FCF Ratio: 23.07
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: 18.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $2.50 ▲(4.60% Upside)

RLX Technology's overall stock score is driven by strong earnings call results and a solid balance sheet. However, technical indicators suggest short-term weakness, and valuation metrics indicate potential overvaluation. The company's strategic focus on international expansion and financial stability are key strengths, but challenges in income stability and regulatory hurdles remain.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, enhancing RLX's competitive position and long-term prospects.

International Expansion

International expansion diversifies revenue streams and reduces dependence on domestic markets, supporting sustainable growth and resilience against local market challenges.

Financial Stability

Strong cash flow and financial stability enable RLX to fund operations and strategic initiatives without relying on external financing, ensuring long-term operational flexibility.

Negative Factors

Regulatory Challenges

Increasing regulatory challenges could impact market access and compliance costs, potentially hindering growth and profitability in the long term.

Market Dominance by Illegal Products

The prevalence of illegal products in China poses a significant threat to market share and revenue potential, challenging RLX's ability to compete effectively.

Income Stability

Inconsistent income and cash flow can strain financial resources, limiting RLX's ability to invest in growth opportunities and manage operational costs effectively.

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 distributors. RLX Technology Inc. was founded in 2018 and is based in Beijing, China.

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 revenue streams include the sale of proprietary vaping devices and branded e-liquids, which often come in various flavors and nicotine levels. Additionally, RLX may benefit from strategic partnerships with established retailers and online platforms, enhancing its market presence and distribution capabilities. The company also invests in marketing and brand development to attract and retain customers in a competitive market.

RLX Technology Financial Statement Overview

Summary

RLX Technology exhibits a mixed financial performance. The balance sheet is strong with low leverage, but income stability and cash flow consistency are challenges. Recent improvements in net income and cash flow suggest recovery, but revenue volatility and operational inefficiencies need strategic focus.

Income Statement

RLX Technology shows a volatile income statement with significant fluctuations in revenue and profit margins. The Gross Profit Margin has been relatively stable, but a negative EBIT Margin in recent years indicates operational inefficiencies. Revenue growth showed a positive trend from 2023 to 2024, but the significant drop from 2022 to 2023 suggests instability. Positive Net Profit Margin in the latest year reflects improved net income, but overall profitability remains inconsistent.

Balance Sheet

The balance sheet of RLX Technology is strong, with a healthy Equity Ratio indicating financial stability and low leverage. The Debt-to-Equity Ratio is low, reflecting minimal reliance on debt financing. However, the Return on Equity has been fluctuating, suggesting potential issues with generating returns on equity capital. Overall, the balance sheet indicates a solid financial position with adequate equity to cover liabilities.

Cash Flow

RLX Technology's cash flow statement shows a mixed performance. Free Cash Flow remains positive, indicating the company can fund its operations and investments without external financing. However, the Free Cash Flow Growth Rate has been inconsistent, reflecting potential volatility in cash-generating ability. The Operating Cash Flow to Net Income Ratio is robust, suggesting strong cash conversion, but fluctuations in free cash flow growth pose some concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	2.44B	1.24B	5.33B	8.52B	3.82B
Gross Profit	898.91M	726.52M	387.71M	2.31B	3.67B	1.53B
EBITDA	104.25M	-60.63M	-400.11M	1.14B	2.34B	36.22M
Net Income	726.77M	551.84M	534.33M	1.44B	2.02B	-128.10M
Balance Sheet
Total Assets	17.49B	16.87B	16.32B	16.38B	16.37B	4.06B
Cash, Cash Equivalents and Short-Term Investments	7.41B	8.49B	8.11B	10.79B	12.85B	3.08B
Total Debt	158.05M	58.50M	53.85M	85.92M	184.81M	94.52M
Total Liabilities	1.25B	881.10M	716.68M	838.45M	2.85B	2.55B
Stockholders Equity	16.15B	15.99B	15.61B	15.57B	13.51B	1.51B
Cash Flow
Free Cash Flow	1.09B	842.09M	166.29M	448.19M	1.66B	2.57B
Operating Cash Flow	1.09B	854.35M	198.70M	486.83M	1.80B	2.59B
Investing Cash Flow	236.54M	3.02B	2.09B	-4.13B	-7.87B	-1.81B
Financing Cash Flow	-517.66M	-678.03M	-1.19B	-477.27M	9.90B	174.88M

RLX Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLX, the sentiment is Positive. The current price of 2.39 is below the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.48, and above the 200-day MA of 2.20, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 68.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RLX.

RLX Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MO	―	$106.30B	12.23	―	6.51%	-0.18%	-10.69%
RLX	―	$2.95B	29.44	4.56%	0.33%	61.64%	16.76%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	―	$233.20B	27.14	―	3.68%	7.72%	-12.45%
TPB	―	$1.64B	38.11	26.05%	0.33%	4.44%	-5.94%
BTI	―	$113.47B	29.03	5.97%	5.70%	0.48%	―
ISPR	―	$135.75M	―	-223.84%	―	-16.07%	-155.70%

RLX Technology Corporate Events

RLX Technology Reports Strong Q2 2025 Financial Results Amid Global Expansion

On August 22, 2025, RLX Technology announced its unaudited financial results for the second quarter of 2025, showcasing significant growth. The company reported net revenues of RMB880.0 million, a 40.3% increase from the same period in 2024, driven by international market expansion. The gross margin improved to 27.5%, and non-GAAP income from operations surged by 147.6% year-over-year. The company’s strategic focus on global compliance, data-driven localized strategies, and international distribution partnerships has reinforced its leadership in the evolving e-vapor industry, positioning it for sustainable growth and long-term shareholder value.