Quality Investor

RLX Technology Inc.

Rank #459Hypergrowth

RLX · NYSE · Consumer Defensive

RLX Technology Inc. (RLX) — Rank #459 by gross profitability (GP/assets 0.07) · ROE 5.9% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001828365 · all metrics point-in-time as of the filing date.

About

RLX Technology Inc., through its subsidiaries, develops, manufactures, and sells e-vapor products in the People's Republic of China and internationally.

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It offers rechargeable e-vapor products under the Qingyu, Phantom, Phantom Pro, Zeus, Leili, and Daqian names; and disposable e-vapor products under the Feiliu and Feiliu Mega names. The company also provides closed-system rechargeable products, open-system products, closed-system disposable products, and modern oral products. It sells its products through local channels, third-party distribution channels, and distribution channels co-managed with third parties, as well as online and offline end users.

The company was founded in 2018 and is headquartered in Shenzhen, the People's Republic of China.

Industry
Tobacco
Sector
Consumer Defensive
State
E9
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

RLX-70.4% · -21.6% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$2.15B

P/E (annual)

2.5

P/S (annual)

0.5

P/B

0.1

P/OCF (annual)

1.9

Shareholder Yield

9.3%

Employees

897

Industry

Tobacco

Exchange

NYSE

Signal Flags

1 green
Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Quality Profile

Profitability

1/1 pass
GP / assets
0.07
Return on equity
5.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.14
Current ratio
5.70×
Net cash
$7.61B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
4.7%

Growth

2/2 pass
Revenue growth
44.0%
Piotroski F-Score
7 / 9
Share dilution
-5.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-26.9%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -5.0% — per-share value needs a total required return of -31.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 58.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-28.9%

r = 10% (base)

-26.9%

r = 12%

-25.1%

Net debt / market cap: -354.3%

Base FCF: $986.8M3Y mean FCF: $667.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

3.2xFair
1.4xmed 3.6x367.3x

P / S

Price / revenue per share

0.7xFair
0.3xmed 1.2x109.1x

P / B

Price / book value per share

0.2xFair
0.1xmed 0.2x2184.9x

P / GP

Price / gross profit per share

2.3xFair
0.8xmed 4.6x244.2x

P / FCF

Price / free cash flow per share

2.7xFair
1.7xmed 6.8x68.8x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.07

Primary signal (Novy-Marx).

Return on equity

5.9%

Gross margin

29.9%

Revenue growth (YoY)

44.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-9.5%

Revenue CAGR (5Y)

0.7%

Earnings CAGR (3Y)

-13.8%

FCF CAGR (3Y)

30.1%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.14

Current ratio

5.70×

Quick ratio

Net cash

$7.61B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$986.82M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.07

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.7%

Stock-based comp intensity.

Dividend safety

Composite score

4.0 / 5

Strong
Payout ratio
9.9%5/5 Strong
FCF coverage
10.79×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 0.14 · IC 51.38×5/5 Strong

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Decline