RLX TECHNOLOGY INC-ADR (RLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RLX - US74969N1037 - ADR
2.45 USD
-0.03 (-1.21%)
2.45 USD
0 (0%)
We assign a fundamental rating of 6 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 shows excellent growth, but is valued quite expensive already.
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's Return On Assets of 4.16% is fine compared to the rest of the industry. RLX outperforms 62.50% of its industry peers.
With a decent Return On Equity value of 4.50%, RLX is doing good in the industry, outperforming 62.50% of the companies in the same industry.
RLX has a Return On Invested Capital of 0.50%. This is in the lower half of the industry: RLX underperforms 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
RLX has a Profit Margin of 22.31%. This is amongst the best in the industry. RLX outperforms 87.50% of its industry peers.
RLX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.89%, RLX is doing worse than 62.50% of the companies in the same industry.
RLX's Gross Margin of 27.59% is in line compared to the rest of the industry. RLX outperforms 50.00% of its industry peers.
RLX's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RLX is destroying value.
The number of shares outstanding for RLX has been reduced compared to 1 year ago.
The number of shares outstanding for RLX has been reduced compared to 5 years ago.
Compared to 1 year ago, RLX has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of RLX is 0.10, which is an excellent value as it means it would take RLX, only 0.10 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.10, RLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
RLX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
RLX has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. RLX outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.07
WACC7.59%
2.3 Liquidity
RLX has a Current Ratio of 8.35. This indicates that RLX is financially healthy and has no problem in meeting its short term obligations.
RLX's Current ratio of 8.35 is amongst the best of the industry. RLX outperforms 100.00% of its industry peers.
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 strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.37%.
Measured over the past years, RLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.32% on average per year.
The Revenue has grown by 73.26% in the past year. This is a very strong growth!
RLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.15% yearly.
EPS 1Y (TTM)-13.37%
EPS 3Y-33.16%
EPS 5Y70.32%
EPS Q2Q%5%
Revenue 1Y (TTM)73.26%
Revenue growth 3Y-31.42%
Revenue growth 5Y12.15%
Sales Q2Q%49.32%
3.2 Future
Based on estimates for the next years, RLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.99% on average per year.
RLX is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.69% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.50, the valuation of RLX can be described as rather expensive.
RLX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.45, RLX is valued at the same level.
RLX is valuated rather expensively with a Price/Forward Earnings ratio of 19.18.
Based on the Price/Forward Earnings ratio, RLX is valued a bit more expensive than 62.50% of the companies in the same industry.
RLX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RLX is valued a bit more expensive than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RLX is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.47 | ||
| EV/EBITDA | 60.33 |
4.3 Compensation for Growth
RLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)0.35
EPS Next 2Y12.85%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
RLX has a Yearly Dividend Yield of 4.35%, which is a nice return.
RLX's Dividend Yield is a higher than the industry average which is at 4.63.
RLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
RLX has been paying a dividend for less than 5 years, so it still needs to build a track record.
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%
2.45
-0.03 (-1.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners28.13%
Inst Owner Change-5.92%
Ins Owners47.75%
Ins Owner ChangeN/A
Market Cap2.99B
Revenue(TTM)2.75B
Net Income(TTM)726.77M
Analysts77.5
Price Target3.12 (27.35%)
Short Float %7.78%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)0%
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 | 24.5 | ||
| Fwd PE | 19.18 | ||
| P/S | 6.51 | ||
| P/FCF | 19.47 | ||
| P/OCF | 19.47 | ||
| P/B | 1.31 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 60.33 |
EPS(TTM)0.1
EY4.08%
EPS(NY)0.13
Fwd EY5.21%
FCF(TTM)0.13
FCFY5.14%
OCF(TTM)0.13
OCFY5.14%
SpS0.38
BVpS1.86
TBVpS1.77
PEG (NY)1.66
PEG (5Y)0.35
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
WACC7.59%
ROIC/WACC0.07
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)-13.37%
EPS 3Y-33.16%
EPS 5Y70.32%
EPS Q2Q%5%
EPS Next Y14.74%
EPS Next 2Y12.85%
EPS Next 3Y8.99%
EPS Next 5YN/A
Revenue 1Y (TTM)73.26%
Revenue growth 3Y-31.42%
Revenue growth 5Y12.15%
Sales Q2Q%49.32%
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%
RLX TECHNOLOGY INC-ADR / RLX FAQ
What is the fundamental rating for RLX stock?
ChartMill assigns a fundamental rating of 6 / 10 to RLX.
What is the valuation status of RLX TECHNOLOGY INC-ADR (RLX) stock?
ChartMill assigns a valuation rating of 3 / 10 to RLX TECHNOLOGY INC-ADR (RLX). This can be considered as Overvalued.
What is the profitability of RLX stock?
RLX TECHNOLOGY INC-ADR (RLX) has a profitability rating of 4 / 10.
What is the financial health of RLX TECHNOLOGY INC-ADR (RLX) stock?
The financial health rating of RLX TECHNOLOGY INC-ADR (RLX) is 8 / 10.