RLX TECHNOLOGY INC-ADR (RLX) Stock Fundamental Analysis
USA - NYSE:RLX - US74969N1037 - ADR
2.4 USD
+0.08 (+3.45%)
2.39 USD
-0.01 (-0.42%)
We assign a fundamental rating of 5 out of 10 to RLX. RLX was compared to 8 industry peers in the Tobacco industry. RLX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RLX is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RLX was profitable.
In the past year RLX had a positive cash flow from operations.
RLX had positive earnings in 4 of the past 5 years.
RLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RLX has a better Return On Assets (4.16%) than 62.50% of its industry peers.
RLX has a Return On Equity of 4.50%. This is in the better half of the industry: RLX outperforms 62.50% of its industry peers.
RLX has a worse Return On Invested Capital (0.50%) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 4.5% | ||
| ROIC | 0.5% |
ROA(3y)5.12%
ROA(5y)4.91%
ROE(3y)5.38%
ROE(5y)4.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 22.31%, RLX belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of RLX has grown nicely.
RLX has a worse Operating Margin (2.89%) than 62.50% of its industry peers.
RLX has a Gross Margin (27.59%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RLX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.89% | ||
| PM (TTM) | 22.31% | ||
| GM | 27.59% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.46%
PM growth 5Y45.47%
GM growth 3Y-15.04%
GM growth 5Y-6.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RLX is destroying value.
RLX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RLX has less shares outstanding
RLX has a better debt/assets ratio than last year.
2.2 Solvency
RLX has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
RLX has a Debt to FCF ratio of 0.10. This is amongst the best in the industry. RLX outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that RLX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, RLX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.06
WACC7.85%
2.3 Liquidity
A Current Ratio of 8.35 indicates that RLX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.35, RLX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 8.12 indicates that RLX has no problem at all paying its short term obligations.
RLX's Quick ratio of 8.12 is amongst the best of the industry. RLX outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.35 | ||
| Quick Ratio | 8.12 |
3. Growth
3.1 Past
RLX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.74%.
The Earnings Per Share has been growing by 70.32% on average over the past years. This is a very strong growth
The Revenue has grown by 43.59% in the past year. This is a very strong growth!
Measured over the past years, RLX shows a quite strong growth in Revenue. The Revenue has been growing by 12.15% on average per year.
EPS 1Y (TTM)-8.74%
EPS 3Y-33.16%
EPS 5Y70.32%
EPS Q2Q%-12.44%
Revenue 1Y (TTM)43.59%
Revenue growth 3Y-31.42%
Revenue growth 5Y12.15%
Sales Q2Q%40.62%
3.2 Future
RLX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
Based on estimates for the next years, RLX will show a very strong growth in Revenue. The Revenue will grow by 26.69% on average per year.
EPS Next Y14.74%
EPS Next 2Y12.85%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue Next Year44.27%
Revenue Next 2Y35.44%
Revenue Next 3Y26.69%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.00, the valuation of RLX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RLX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.67, RLX is valued at the same level.
With a Price/Forward Earnings ratio of 18.84, RLX is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RLX is on the same level as its industry peers.
RLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RLX is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RLX indicates a somewhat cheap valuation: RLX is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 53.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.63
PEG (5Y)0.34
EPS Next 2Y12.85%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
RLX has a yearly dividend return of 0.67%, which is pretty low.
RLX's Dividend Yield is comparable with the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.35, RLX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
RLX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y12.85%
EPS Next 3Y8.99%
2.4
+0.08 (+3.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners28.13%
Inst Owner Change0.1%
Ins Owners47.75%
Ins Owner ChangeN/A
Market Cap2.92B
Revenue(TTM)3.26B
Net Income(TTM)726.77M
Analysts77.5
Price Target3.12 (30%)
Short Float %10.44%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.89%
Min EPS beat(2)-21.02%
Max EPS beat(2)11.24%
EPS beat(4)1
Avg EPS beat(4)-4.18%
Min EPS beat(4)-21.02%
Max EPS beat(4)11.24%
EPS beat(8)3
Avg EPS beat(8)17.73%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)12.52%
Min Revenue beat(2)4.84%
Max Revenue beat(2)20.2%
Revenue beat(4)4
Avg Revenue beat(4)7.8%
Min Revenue beat(4)0.83%
Max Revenue beat(4)20.2%
Revenue beat(8)6
Avg Revenue beat(8)2.55%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)9.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.19%
EPS NY rev (3m)8.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)25.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 18.84 | ||
| P/S | 6.4 | ||
| P/FCF | 19.11 | ||
| P/OCF | 19.11 | ||
| P/B | 1.29 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 53.99 |
EPS(TTM)0.1
EY4.17%
EPS(NY)0.13
Fwd EY5.31%
FCF(TTM)0.13
FCFY5.23%
OCF(TTM)0.13
OCFY5.23%
SpS0.38
BVpS1.86
TBVpS1.77
PEG (NY)1.63
PEG (5Y)0.34
Graham Number2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 4.5% | ||
| ROCE | 0.57% | ||
| ROIC | 0.5% | ||
| ROICexc | 0.91% | ||
| ROICexgc | 1% | ||
| OM | 2.89% | ||
| PM (TTM) | 22.31% | ||
| GM | 27.59% | ||
| FCFM | 33.47% |
ROA(3y)5.12%
ROA(5y)4.91%
ROE(3y)5.38%
ROE(5y)4.52%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.46%
PM growth 5Y45.47%
GM growth 3Y-15.04%
GM growth 5Y-6.75%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 641.43% | ||
| Profit Quality | 150.03% | ||
| Current Ratio | 8.35 | ||
| Quick Ratio | 8.12 | ||
| Altman-Z | N/A |
F-Score7
WACC7.85%
ROIC/WACC0.06
Cap/Depr(3y)25.61%
Cap/Depr(5y)45.41%
Cap/Sales(3y)1.11%
Cap/Sales(5y)1.08%
Profit Quality(3y)71.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.74%
EPS 3Y-33.16%
EPS 5Y70.32%
EPS Q2Q%-12.44%
EPS Next Y14.74%
EPS Next 2Y12.85%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue 1Y (TTM)43.59%
Revenue growth 3Y-31.42%
Revenue growth 5Y12.15%
Sales Q2Q%40.62%
Revenue Next Year44.27%
Revenue Next 2Y35.44%
Revenue Next 3Y26.69%
Revenue Next 5YN/A
EBIT growth 1Y136.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year105.54%
EBIT Next 3Y48.96%
EBIT Next 5YN/A
FCF growth 1Y172.71%
FCF growth 3Y-20.26%
FCF growth 5Y27.93%
OCF growth 1Y174.93%
OCF growth 3Y-21.99%
OCF growth 5Y20.37%