RLX Technology (RLX) AI Stock Analysis

• Market Cap: $2.97B
• Dividend Yield: 0.34%
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.57
• Revenue Growth: 51.49%
• EPS Growth: 21.43%
• 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: 1,718,765
• 30 Day Avg. Volume: 1,964,694
• 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: 0.75
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 10.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.12
• Revenue Forecast (FY): $552.43M

• Rating: 76 Outperform
• Price Target: $3.00 ▲(23.97% Upside)

RLX Technology's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust international growth and financial stability are significant strengths. However, the high valuation and challenges in Mainland China and the UK slightly temper the overall outlook.

Positive Factors

International Market Success

Strong international market presence, particularly in Asia Pacific and Europe, enhances RLX's competitive position and revenue diversification.

Revenue Growth

Significant revenue growth indicates robust demand and successful market strategies, supporting long-term business expansion.

Strong Cash Flow

Improved cash flow from operations enhances financial flexibility, enabling investment in growth and shareholder returns.

Negative Factors

Challenges in Mainland China

Struggles in Mainland China due to market challenges could hinder overall growth and require strategic adjustments.

Regulatory Challenges in UK

Regulatory hurdles in the UK may limit market potential and require compliance adaptations, impacting growth prospects.

Volatile Income Statement

Inconsistent revenue and margins suggest operational inefficiencies, posing risks to sustained profitability and stability.

RLX Technology Business Overview & Revenue Model

Company Description

RLX Technology is a leading provider in the electronic vaporization sector, primarily focused on developing and manufacturing innovative vaping products and technology. The company operates within the broader consumer electronics and tobacco alternatives markets, offering a range of products including e-cigarettes and related accessories. RLX aims to provide high-quality, user-friendly vaping solutions that cater to the growing demand for alternatives to traditional tobacco consumption.

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 strong financial health with robust revenue growth, healthy profit margins, and excellent cash flow management. The company maintains a solid balance sheet with minimal leverage, ensuring financial stability. However, there is room for improvement in operational efficiency.

Income Statement

RLX Technology shows a strong revenue growth rate of 12.15% in the TTM, indicating a positive trend. The gross profit margin of 31.95% and net profit margin of 23.35% are healthy, reflecting good cost management and profitability. However, the EBIT and EBITDA margins are relatively low at 6.05% and 6.67%, respectively, suggesting room for improvement in operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and financial stability. The return on equity (ROE) is moderate at 4.74%, showing decent profitability relative to shareholder equity. The equity ratio of 92.37% highlights a strong capital structure with a high proportion of equity financing.

Cash Flow

RLX Technology demonstrates robust cash flow management with a free cash flow growth rate of 18.43% in the TTM. The operating cash flow to net income ratio of 1.25 and free cash flow to net income ratio of 1.00 indicate strong cash generation relative to profits, enhancing liquidity and financial flexibility.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.42 is below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.42, and above the 200-day MA of 2.22, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 21.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLX.

RLX Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	76 Outperform	$2.97B	28.14	4.71%	0.34%	51.49%	21.43%
TPB	69 Neutral	$1.94B	35.73	22.54%	0.29%	6.71%	8.16%
MO	64 Neutral	$97.35B	11.06	―	7.02%	-0.96%	-11.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PM	60 Neutral	$230.09B	26.77	―	3.67%	7.72%	-12.45%
BTI	59 Neutral	$124.15B	31.55	5.97%	5.07%	0.48%	―
ISPR	51 Neutral	$120.31M	―	-254.99%	―	-20.13%	-88.66%

RLX Technology Corporate Events

RLX Technology Reports Strong Q3 2025 Financial Results and Announces Dividend

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-over-year to RMB1.13 billion, driven by international expansion and recovery in the Mainland China market. RLX Technology’s strategic investments in European markets and the successful rollout of new products in the UK have contributed to its growth, enhancing its competitive position in the global e-vapor industry. The company also announced a cash dividend and highlighted its commitment to shareholder returns through dividends and share repurchases.