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ZYBERNO

Stock Report

Updated Aug 31, 2026

RLX Technology Inc. (RLX)

Consumer Staples • NYSE

$1.83

RLX Technology Inc. is a Chinese electronic nicotine delivery system (ENDS) company headquartered in Beijing, China, that manufactures and sells e-cigarettes and related products under the RELX brand. The company is the largest e-vapor brand in China by retail sales, and has expanded internationally to over 50 markets including European countries, Southeast Asia, and the United States.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

37.0/100

WEAK BUSINESS

RLX Technology Inc. (RLX) scores 37/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full RLX quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

+7.1%

Market Underestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full RLX valuation analysis · → View full RLX Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.01x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):POOR (8.9%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

RLX Technology Inc. (RLX) stock report — Zyberno Score 37/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, RLX Technology Inc. (RLX) shows a Brina Gap of +7.1%, which strengthens the case: based on the company's ROIC (8.9%) and reinvestment rate (73.6%), the business can fundamentally grow at 6.5% — but the current enterprise value implies the market expects -0.6%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:1.83

Market Cap:$2.24B

Valuation Multiples (2)

P/B Ratio:1.00x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$1.49B

Ev Ebitda Ratio:9.63x

Pfcf Ratio:15.87x

Price Action & Momentum (3)

12-1 Momentum:

-11.4% (26th pctile)

📈 Click to view full RLX Momentum analysis →

Momentum Percentile:26 / 100

% of 52-Week High:64.4%

B. Profitability Assessment

Return Metrics (5)

Roic:

8.9%

📊 Click to view full RLX ROIC analysis →

Reinvestment Rate:73.6%

Fundamental Growth Rate (g):6.5%

Market-Implied Growth Rate:-0.6%

Brina Gap:

7.1%

☷ Click to view full RLX Brina Gap analysis →

Margin Analysis (1)

Ebitda Margin:27.4%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:0.6%

C. Log-Linear Regression Growth Trends

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:5.70x

Quick Ratio:5.55x

Cash Ratio:2.73x

Leverage Analysis (3)

Debt To Equity Ttm:0.01x

Debt-to-Equity Ratio:0.01x

Debt To Ebitda:0.14x

Coverage Ratios (2)

Interest Coverage Ratio:164.80x

Times Interest Earned:164.80

Capital Structure (4)

Working Capital:1,321,152,000.00

Cash And Cash Equivalents:767,491,000.00

Long Term Debt:$7.96M

Net Debt:-$746.36M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

$566.11M

Cost Of Revenue Ttm:$348.01M

Profitability Breakdown (2)

$218.10M$150.63M

Bottom Line Performance (3)

$131.83M

Income Before Tax:$150.63M

Ebitda Ttm:155,045,000.00

Operating Expenses (5)

Operating Expenses:122,270,000.00

R And D Expense:18,734,000.00

Sga Expense:48,178,000.00

Income Tax Expense:$17.02M

Interest Expense:914,000.00

Expense Ratios (3)

R And D To Revenue Percentage:3.3%

Sga To Revenue Percentage:8.5%

Ebitda Margin:27.4%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$2.56B

Current Assets:$1.60B

Ppe Net:35,175,000.00

Goodwill:81,106,000.00

Intangible Assets:$30.48M

Liability Structure (4)

Total Liabilities:314,305,000.00

Current Liabilities:281,004,000.00

Long Term Debt:$7.96M

Short Term Debt:$13.17M

Equity & Capital (3)

Equity:$2.25B

Retained Earnings:$589.12M

Common Stock:15,000,000,000.00

Working Capital Items (3)

Accounts Receivable:7,612,043.77

Inventory:42,568,000.00

Accounts Payable:44,970,777.10

Special Items (2)

Contract Liabilities:12,012,000.00

Stock Based Compensation:26,631,000.00

C. Cash Flow Analysis

Operating Activities (2)

$157.95M$141.11M

Investment Activities (1)

Investing Cash Flow:-$117.57M

Financing Activities (3)

Financing Cash Flow:-$40.43M

Dividends Paid Ttm:13,080,000.00

Stock Repurchase:26,302,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:4,415,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$0.11

Revenue & Cash Per Share (2)

Sales Per Share Ttm:0.46

Operating Cash Flow Per Share:$0.13

Book Value & Capital (2)

Book Value Per Share:$1.84

Cash Per Share:0.63

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.22x

Working Capital Turnover Ttm:0.43x

Receivables Management (2)

Receivables Turnover Ttm:74.37x

Days Sales Outstanding Ttm:4.91

Inventory Management (2)

Inventory Turnover Ttm:8.18x

Days Inventory Outstanding Ttm:44.65

Payables & Cash Cycle (2)

Days Payable Outstanding:47.17

Cash Conversion Cycle:2.39

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:100.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:73.6%

Fundamental Growth Rate (g):6.5%

Market-Implied Growth Rate:-0.6%

Brina Gap:

7.1%

☷ Click to view full RLX Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

C. Company Profile & Context

Corporate Information (6)

Symbol:RLX

Company Name:RLX Technology Inc.

Sector:Consumer Staples

Industry:Tobacco

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:1.22B

Shares Outstanding Basic:1.22B

Shares Outstanding Diluted:1.22B

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 02:42:15 UTC

Data Timestamp:2026-08-31T02:42:15.490020