RLX TECHNOLOGY INC-ADR (RLX) Stock Fundamental Analysis
NYSE:RLX - New York Stock Exchange, Inc. - US74969N1037 - ADR - Currency: USD
Taking everything into account, RLX scores 5 out of 10 in our fundamental rating. 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 expensive, but it does show an excellent growth.
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
Looking at the Return On Assets, with a value of 3.76%, RLX is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
RLX's Return On Equity of 3.96% is fine compared to the rest of the industry. RLX outperforms 62.50% of its industry peers.
RLX has a Return On Invested Capital of 0.12%. This is in the lower half of the industry: RLX underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 3.96% | ||
| ROIC | 0.12% |
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
Looking at the Profit Margin, with a value of 21.36%, RLX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
RLX's Profit Margin has improved in the last couple of years.
RLX has a worse Operating Margin (0.73%) than 62.50% of its industry peers.
RLX has a Gross Margin (27.11%) which is in line with its industry peers.
RLX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.73% | ||
| PM (TTM) | 21.36% | ||
| GM | 27.11% |
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
RLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RLX has less shares outstanding
RLX has less shares outstanding than it did 5 years ago.
RLX has a better debt/assets ratio than last year.
2.2 Solvency
RLX has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
RLX has a better Debt to FCF ratio (0.08) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that RLX is not too dependend on debt financing.
The Debt to Equity ratio of RLX (0.00) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | N/A |
ROIC/WACC0.02
WACC6.93%
2.3 Liquidity
A Current Ratio of 10.97 indicates that RLX has no problem at all paying its short term obligations.
RLX has a better Current ratio (10.97) than 100.00% of its industry peers.
A Quick Ratio of 10.83 indicates that RLX has no problem at all paying its short term obligations.
RLX has a Quick ratio of 10.83. This is amongst the best in the industry. RLX outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.97 | ||
| Quick Ratio | 10.83 |
3. Growth
3.1 Past
RLX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.97%.
The Earnings Per Share has been growing by 70.32% on average over the past years. This is a very strong growth
Looking at the last year, RLX shows a very strong growth in Revenue. The Revenue has grown by 48.77%.
The Revenue has been growing by 12.15% on average over the past years. This is quite good.
EPS 1Y (TTM)7.97%
EPS 3Y-33.16%
EPS 5Y70.32%
EPS Q2Q%20.13%
Revenue 1Y (TTM)48.77%
Revenue growth 3Y-31.42%
Revenue growth 5Y12.15%
Sales Q2Q%46.53%
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 10.05% on average per year.
The Revenue is expected to grow by 18.21% on average over the next years. This is quite good.
EPS Next Y6.05%
EPS Next 2Y11.27%
EPS Next 3Y10.05%
EPS Next 5YN/A
Revenue Next Year14.97%
Revenue Next 2Y17.26%
Revenue Next 3Y18.21%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
RLX is valuated rather expensively with a Price/Earnings ratio of 22.70.
RLX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.41. RLX is around the same levels.
The Price/Forward Earnings ratio is 18.43, which indicates a rather expensive current valuation of RLX.
Based on the Price/Forward Earnings ratio, RLX is valued a bit cheaper than 75.00% of the companies in the same industry.
RLX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than RLX, based on the Enterprise Value to EBITDA ratio.
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 | 18.75 | ||
| EV/EBITDA | 84.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.75
PEG (5Y)0.32
EPS Next 2Y11.27%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
RLX has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 3.80, RLX is paying slightly less dividend.
With a Dividend Yield of 0.35, RLX pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
RLX does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y11.27%
EPS Next 3Y10.05%
2.27
+0.01 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners27.97%
Inst Owner Change0%
Ins Owners47.75%
Ins Owner ChangeN/A
Market Cap2.77B
Analysts77.5
Price Target2.85 (25.55%)
Short Float %21.64%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.65%
Min EPS beat(2)-5.94%
Max EPS beat(2)11.24%
EPS beat(4)1
Avg EPS beat(4)-1.37%
Min EPS beat(4)-9.79%
Max EPS beat(4)11.24%
EPS beat(8)4
Avg EPS beat(8)35.36%
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)5.08%
Min Revenue beat(2)4.84%
Max Revenue beat(2)5.33%
Revenue beat(4)3
Avg Revenue beat(4)2.07%
Min Revenue beat(4)-2.73%
Max Revenue beat(4)5.33%
Revenue beat(8)6
Avg Revenue beat(8)1%
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)-5.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-7.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 18.43 | ||
| P/S | 6.6 | ||
| P/FCF | 18.75 | ||
| P/OCF | 18.75 | ||
| P/B | 1.22 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 84.3 |
EPS(TTM)0.1
EY4.41%
EPS(NY)0.12
Fwd EY5.43%
FCF(TTM)0.12
FCFY5.33%
OCF(TTM)0.12
OCFY5.33%
SpS0.34
BVpS1.86
TBVpS1.84
PEG (NY)3.75
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 3.96% | ||
| ROCE | 0.13% | ||
| ROIC | 0.12% | ||
| ROICexc | 0.24% | ||
| ROICexgc | 0.24% | ||
| OM | 0.73% | ||
| PM (TTM) | 21.36% | ||
| GM | 27.11% | ||
| FCFM | 35.19% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 1082.41% | ||
| Profit Quality | 164.73% | ||
| Current Ratio | 10.97 | ||
| Quick Ratio | 10.83 | ||
| Altman-Z | N/A |
F-Score6
WACC6.93%
ROIC/WACC0.02
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)7.97%
EPS 3Y-33.16%
EPS 5Y70.32%
EPS Q2Q%20.13%
EPS Next Y6.05%
EPS Next 2Y11.27%
EPS Next 3Y10.05%
EPS Next 5YN/A
Revenue 1Y (TTM)48.77%
Revenue growth 3Y-31.42%
Revenue growth 5Y12.15%
Sales Q2Q%46.53%
Revenue Next Year14.97%
Revenue Next 2Y17.26%
Revenue Next 3Y18.21%
Revenue Next 5YN/A
EBIT growth 1Y112.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year60.51%
EBIT Next 3Y38.98%
EBIT Next 5YN/A
FCF growth 1Y1194.78%
FCF growth 3Y-20.26%
FCF growth 5Y27.93%
OCF growth 1Y2132.63%
OCF growth 3Y-21.99%
OCF growth 5Y20.37%