RLX Technology's Financials Raise Concerns: Is the Stock Headed for a Downturn?

RLX Technology's stock has increased 8% over the past three months, but its return on equity (ROE) is low at 4.5%, compared to the industry average of 23%. This has resulted in a 3.3% net income decline over the past five years, despite the industry growing at 7.3%. The company's poor capital allocation and high payout ratio may be contributing factors to its inconsistent financials.