RLX Technology (RLX) AI Stock Analysis

• Market Cap: $3.08B
• Dividend Yield: 0.32%
• Average Volume (3M): 3.81M
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.54
• 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: 4,409,324
• 30 Day Avg. Volume: 3,806,364
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 2.31
• Enterprise Value/Ebitda: 56.06
• 1Y Price Target: $2.50
• Price Target Upside: -1.19% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $2.50 ▼(-1.19% Downside)

RLX Technology's overall stock score is driven by strong earnings call performance and positive technical indicators. Financial performance shows stability in the balance sheet but highlights the need for operational improvements. Valuation concerns due to a high P/E ratio slightly offset these strengths.

Positive Factors

Revenue Growth

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

International Expansion

International expansion diversifies revenue streams and reduces dependency on domestic markets, positioning RLX for sustained growth.

Cash Flow and Financial Stability

Strong cash flow and financial stability ensure RLX can fund operations and strategic initiatives, supporting long-term business health.

Negative Factors

Regulatory Challenges

Increasing regulatory challenges could limit market access and increase compliance costs, impacting RLX's growth and profitability.

Dominance of Illegal Products in China

The prevalence of illegal products in China undermines RLX's market share and revenue potential, posing a significant competitive threat.

Operational Inefficiencies

Operational inefficiencies reflected in negative EBIT margins can erode profitability and hinder RLX's ability to sustain competitive advantages.

RLX Technology Business Overview & Revenue Model

Company Description

RLX Technology (RLX) is a leading Chinese e-vapor company that focuses on the design, development, and sale of e-vapor products. The company operates primarily within the consumer electronics sector, with a strong emphasis on innovation and technology. RLX's core products include a range of electronic nicotine delivery systems, marketed under the brand name RELX, which are known for their sleek design, advanced features, and user-friendly experience.

How the Company Makes Money

RLX Technology generates revenue primarily through the sale of its e-vapor products. The company's revenue model is centered on direct sales to distributors and retailers, who then sell these products to end consumers. Key revenue streams include the sale of vaping devices, pre-filled flavor pods, and other related accessories. RLX Technology benefits from partnerships with retail chains and specialty stores, ensuring widespread distribution and availability of its products. Additionally, the company invests in research and development to continually enhance its product offerings, which helps maintain consumer interest and drive sales. Regulatory compliance and market expansion also play significant roles in the company's ability to generate revenue.

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	2.68B	2.44B	1.24B	5.33B	8.52B	3.82B
Gross Profit	814.70M	726.52M	387.71M	2.31B	3.67B	1.53B
EBITDA	33.53M	-60.63M	-400.11M	1.06B	2.30B	13.15M
Net Income	641.97M	551.84M	534.33M	1.44B	2.02B	-128.10M
Balance Sheet
Total Assets	17.07B	16.87B	16.32B	16.38B	16.37B	4.06B
Cash, Cash Equivalents and Short-Term Investments	8.16B	8.49B	8.11B	10.79B	12.85B	3.08B
Total Debt	83.56M	58.50M	53.85M	85.92M	184.81M	94.52M
Total Liabilities	849.13M	881.10M	716.68M	838.45M	2.85B	2.55B
Stockholders Equity	16.22B	15.99B	15.61B	15.57B	13.51B	1.51B
Cash Flow
Free Cash Flow	1.06B	842.09M	166.29M	448.19M	1.66B	2.57B
Operating Cash Flow	1.06B	854.35M	198.70M	486.83M	1.80B	2.59B
Investing Cash Flow	1.61B	3.02B	2.09B	-4.13B	-7.87B	-1.81B
Financing Cash Flow	-190.71M	-678.03M	-1.19B	-477.27M	9.90B	174.88M

RLX Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.53 is below the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.36, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 10.84 is Positive, 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	71 Outperform	109.01B	12.54	-269.87%	6.35%	-0.18%	-10.69%
UVV	71 Outperform	1.38B	13.43	6.52%	5.88%	4.11%	-15.50%
RLX	70 Outperform	$3.08B	30.78	4.56%	0.32%	61.64%	16.76%
TPB	70 Neutral	1.84B	42.73	19.97%	0.29%	4.44%	-5.94%
PM	67 Neutral	253.65B	30.92	-68.66%	3.31%	7.44%	-6.72%
BTI	62 Neutral	119.90B	30.27	6.18%	5.46%	0.48%	0.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.