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RLX Technology (RLX)
NYSE:RLX
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RLX Technology
(NYSE:RLX)
64Neutral
RLX Technology (RLX) vs. S&P 500 (SPY)
Market Cap
$2.90B
Dividend Yield0.35%
Average Volume (3M)5.05M
Price to Earnings (P/E)31.9
Beta (1Y)0.86
Revenue Growth110.63%
EPS Growth693.33%
CountryUS
Employees397
SectorTechnology
Sector Strength45
IndustryTobacco
Share Statistics
EPS (TTM)0.07
Shares Outstanding962,886,800
10 Day Avg. Volume4,628,450
30 Day Avg. Volume5,046,987
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)17.03
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
RLX Technology Business Overview & Revenue Model
Company DescriptionRLX Technology Inc is engaged in the manufacturing of e-vapor products for adult smokers. It has an integrated offline distribution and "Branded store plus" retail model tailored to China's e-vapor market.
How the Company Makes MoneyRLX Technology makes money through the sale of its e-vapor products, which include a variety of e-cigarette devices, cartridges, and related accessories. The company's revenue model relies heavily on its distribution network, which includes both direct sales through its online platform and partnerships with offline retailers. Key revenue streams include the sale of its flagship product lines and recurring revenue from the sale of refill cartridges. Additionally, RLX Technology benefits from strategic partnerships that help to expand its market reach and enhance product development. The company's earnings are also influenced by regulatory factors and consumer trends within the new tobacco product sector.
RLX Technology Financial Statement Overview
Summary
RLX Technology is facing operational challenges with declining revenues and negative margins, yet maintains a robust balance sheet with strong equity and low leverage. The company's ability to generate cash from operations is a positive, though inconsistent free cash flow growth and recent decreases pose challenges.Income Statement
RLX Technology's income statement shows a concerning trend with a significant decline in revenue from 2022 to TTM (Trailing-Twelve-Months), and a negative EBIT and EBITDA margin, indicating operational inefficiencies. Despite this, the company has managed to maintain a positive net income margin due to specific factors that need further analysis. The revenue growth rate is negative, pointing towards a shrinking business environment.45
Neutral
Balance Sheet
The balance sheet is relatively strong with a high equity ratio indicating a solid capital base. The Debt-to-Equity Ratio is very low, suggesting low leverage and financial stability. Return on Equity is positive, though it has decreased over the period, reflecting reduced profitability.72
Positive
Cash Flow
Cash flow analysis reveals a substantial increase in operating cash flow to net income ratio, indicating strong cash generation relative to profits. However, free cash flow growth has been inconsistent, and the recent decrease in free cash flow could signal potential challenges in sustaining cash reserves.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.23B | 1.24B | 5.33B | 8.52B | 3.82B | 1.55B | Gross Profit |
| 644.36M | 387.71M | 2.31B | 3.67B | 1.53B | 580.94M | EBIT |
| -231.15M | -496.71M | 1.06B | 2.30B | 13.15M | 56.39M | EBITDA |
| -219.52M | -400.11M | 1.06B | 2.30B | 13.15M | 59.54M | Net Income Common Stockholders |
| 647.39M | 534.33M | 1.44B | 2.02B | -128.10M | 47.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.33B | 8.11B | 10.79B | 12.85B | 3.08B | 463.20M | Total Assets |
| 16.03B | 16.32B | 16.38B | 16.37B | 4.06B | 1.44B | Total Debt |
| 49.06M | 53.85M | 85.92M | 184.81M | 94.52M | 92.78M | Net Debt |
| -2.27B | -2.34B | -1.18B | -5.02B | -1.02B | -42.77M | Total Liabilities |
| 639.78M | 716.68M | 838.45M | 2.85B | 2.55B | 1.34B | Stockholders Equity |
| 15.40B | 15.61B | 15.57B | 13.51B | 1.51B | 106.28M |
| Cash Flow | Free Cash Flow | ||||
| 649.72M | 166.29M | 448.19M | 1.66B | 2.57B | 245.73M | Operating Cash Flow |
| 677.94M | 198.70M | 486.83M | 1.80B | 2.59B | 338.13M | Investing Cash Flow |
| 1.43B | 2.09B | -4.13B | -7.87B | -1.81B | -497.84M | Financing Cash Flow |
| -1.32B | -1.19B | -477.27M | 9.90B | 174.88M | 576.40M |
RLX Technology Technical Analysis
Positive
2.31
Price Trends
2.27
Positive
2.03
Positive
1.89
Positive
Market Momentum
0.01
Positive
52.91
Neutral
38.98
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 2.31 is below the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.27, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.91 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
RLX Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $29.28B | 9.31 | 45.38% | 5.32% | 5.61% | 23.39% | |
72 Outperform | $98.31B | 8.89 | -503.31% | 6.88% | -0.28% | 43.51% | |
67 Neutral | $236.49B | 33.65 | -37142.11% | 3.50% | 7.75% | -9.85% | |
64 Neutral | $2.90B | 31.93 | 4.04% | 0.35% | 110.63% | 693.33% | |
62 Neutral | $1.34B | 10.89 | 8.32% | 5.95% | 12.88% | -6.33% | |
61 Neutral | $89.85B | 23.48 | 5.87% | 7.11% | -2.51% | ― | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% |
* Technology Sector Average
Performance Comparison
RLX
RLX Technology
2.35
0.41
21.13%
MO
Altria Group
57.81
17.03
41.76%
BTI
British American Tobacco
41.38
13.46
48.21%
PM
Philip Morris
151.32
61.86
69.15%
UVV
Universal
54.70
7.84
16.73%
IMBBY
Imperial Brands
35.49
14.63
70.13%
RLX Technology Earnings Call Summary
Earnings Call Date: Nov 15, 2024 | % Change Since: 42.59% | Next Earnings Date: Mar 14, 2025
Earnings Call Sentiment Positive
The earnings call presented significant positive developments, particularly in international revenue growth, improved profit margins, and successful product launches. However, challenges remain with operating losses and the prevalence of illegal products in China. Overall, the sentiment is positive with strong forward momentum in international markets.Highlights
Strong Revenue Growth
Net revenues grew to RMB 756 million in Q3 2024, up 52% year-over-year and 21% quarter-over-quarter.
International Expansion Success
Non-China business revenue accounted for more than half of net revenues, with the company operating directly in 5 countries and achieving the #1 brand position in 3 out of 5 countries.
Improved Gross Profit Margin
Overall gross profit margin improved to 27.2% in Q3 2024, a 3.2 percentage point increase year-over-year.
Positive Cash Flow and Dividend Announcement
Operating cash inflow of RMB 157 million in Q3 2024, with a second cash dividend since IPO reaffirming commitment to shareholder value.
New Product Launches
Launch of Daqian and compliant disposable product series, enhancing competitiveness and receiving positive feedback.
Lowlights
Operating Loss Despite Revenue Growth
Recorded a total operating loss of RMB 11 million in Q3 2024, although a positive non-GAAP operating profit was achieved.
Dominance of Illegal Products in China
Illegal e-vapor products account for 80% to 90% of the total e-vapor market in China, impacting the compliant market.
Company Guidance
During RLX Technology's Q3 2024 earnings call, several financial metrics and strategic insights were discussed. The company reported net revenues of RMB 756 million, marking a 52% year-over-year increase from RMB 499 million and a 21% quarter-over-quarter rise from RMB 627 million. Their gross profit margin improved to 27.2%, reflecting a 3.2 percentage point increase from the previous year. Despite recording an operating loss of RMB 11 million, their non-GAAP operating profit reached RMB 82 million when excluding share-based compensation. Additionally, RLX achieved a non-GAAP net income of RMB 262 million, a 30% increase year-over-year. Inventory turnover days were reduced to 16 days, down from over 100 days in Q1 2023, indicating effective inventory management. The company also announced a second cash dividend since their IPO, reinforcing their commitment to shareholder value. Looking forward, RLX anticipates annual growth rates in the teens for the international e-vapor industry and plans to expand into more regions while enhancing product offerings to capture additional market share.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.