RLX Technology (RLX) Fundamental Analysis: Revenue, Earnings & Valuation

6.20 / 10

Outperform

RLX Technology's fundamental score of 6.2/10 indicates adequate quality. Key strengths include robust revenue and profit metrics (Revenue-MV and Profit-MV), high net cash flow from operating activities, and a low long-term debt ratio. However, risks are present in the Net cash flow to operating revenue ratio and the Long-term debt to working capital ratio, which slightly temper the overall fundamental outlook. The company's operating cycle is reasonable, but further improvement in cash flow efficiency would enhance its appeal.

Analysis Checks(7/10)

Revenue-MV

Value-0.26

Score2/3

Weight5.20%

1M Return4.56%

Net cash flow from operating activities per share (YoY growth rate %)

Value131.99

Score2/3

Weight1.85%

1M Return1.62%

Operating cycle

Value38.77

Score2/3

Weight3.62%

1M Return3.09%

Net cash flow from operating activities / Operating revenue (%)

Value28.19

Score1/3

Weight3.56%

1M Return2.65%

Profit-MV

Value0.46

Score3/3

Weight36.74%

1M Return16.10%

Net income-Revenue

Value0.20

Score2/3

Weight13.39%

1M Return8.80%

PB-ROE

Value1.24

Score1/3

Weight0.92%

1M Return1.62%

Long-term debt to working capital ratio (%)

Value0.02

Score1/3

Weight1.39%

1M Return1.49%

EBIT / Total operating revenue (%)

Value11.79

Score3/3

Weight14.29%

1M Return9.23%

Cash-MV

Value-0.07

Score3/3

Weight19.05%

1M Return11.93%

Is RLX undervalued or overvalued?

RLX scores 6.20/10 on fundamentals and holds a Discounted valuation at present. Backed by its 3.99% ROE, 21.36% net margin, 28.08 P/E ratio, 1.29 P/B ratio, and 16.61% earnings growth, these metrics solidify its Outperform investment rating.