RLX Technology Inc. American Depositary Shares each representing the right to receive one (1) Class A ordinary share (RLX)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $1.71 on 2026-10-13, RLX trades at a FairStock P/B of 0.90, P/E of 15.55, and a 5.95% dividend yield. The FairStock Graham Number is $5.60, implying a 69.46% margin of safety. Trailing twelve-month free cash flow was $417.0M, a 14.9% FCF yield. That combination—low price-to-book, high cash generation, and a real dividend—gets my attention. Business quality: in fiscal Q2 2026, revenue was $916.9M and net income was $217.7M, a 23.75% net margin. That is admirable. But FairStock's ROE of 6.33% and ROCE of 2.14% are not the marks of a wonderful business, and Piotroski 4/9 plus Altman Z-Score 2.14 suggest only middling financial momentum and some balance-sheet caution, despite a D/E of 0.02. The e-vapor category may have brand and regulatory barriers, but the supplied figures do not prove a wide moat. FairStock's PEG of 0.69 implies growth has been attractive relative to earnings, though the underlying growth period is not specified in the data. EV/EBITDA of -2.71 is odd and I would not take it at face value. Valuation seems cheap on asset and cash-flow measures, but low returns on capital and regulatory overhang argue for a margin of safety. I would want to see consistent filed results—FairStock's Lynch category is 'none' because there are only 0 years of filed results and three are needed. This is a statistical bargain with business-quality caveats, not a slam dunk.

In plain English: RLX Technology makes and sells e-vapor products in China and other countries. The latest reported quarter showed solid sales and profit, and the company has little debt, pays a sizable dividend, and generates plenty of cash. The stock price looks low compared with what the books say it is worth and with the cash it produces, though the business faces regulatory risk and its profits per dollar invested are modest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer