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 has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
Of the past 5 years RLX 4 years were profitable.
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.
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 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.
With a Operating Margin value of 2.89%, RLX is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Looking at the Gross Margin, with a value of 27.59%, RLX is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
Compared to 1 year ago, RLX has less shares outstanding
The number of shares outstanding for RLX has been reduced compared to 5 years ago.
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's Debt to FCF ratio of 0.10 is amongst the best of the industry. RLX outperforms 100.00% of its industry peers.
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 better Debt to Equity ratio (0.01) than 87.50% of its industry peers.
| 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.
RLX's Current ratio of 8.35 is amongst the best of the industry. RLX outperforms 100.00% of its industry peers.
RLX has a Quick Ratio of 8.12. This indicates that RLX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 8.12, RLX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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%.
RLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.32% yearly.
The Revenue has grown by 43.59% 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)-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
The Earnings Per Share is expected to grow by 8.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 26.69% on average over the next years. This is a very strong growth
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.
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
A Price/Earnings ratio of 24.00 indicates a rather expensive valuation of RLX.
Based on the Price/Earnings ratio, RLX is valued a bit more expensive than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.83, RLX is valued at the same level.
With a Price/Forward Earnings ratio of 18.83, RLX is valued on the expensive side.
RLX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RLX is more expensive than 62.50% of the companies in the same industry.
RLX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RLX indicates a slightly more expensive valuation: RLX is more expensive than 62.50% of the companies listed in the same industry.
RLX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RLX is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 58.04 |
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)1.63
PEG (5Y)0.34
EPS Next 2Y12.85%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, RLX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.98, RLX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, RLX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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%
2.4
+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 | 18.83 | ||
| P/S | 6.39 | ||
| P/FCF | 19.11 | ||
| P/OCF | 19.11 | ||
| P/B | 1.29 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 58.04 |
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%
RLX TECHNOLOGY INC-ADR / RLX FAQ
What is the fundamental rating for RLX stock?
ChartMill assigns a fundamental rating of 5 / 10 to RLX.
What is the valuation status of RLX TECHNOLOGY INC-ADR (RLX) stock?
ChartMill assigns a valuation rating of 2 / 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.