RLX (RLX): one to watch?

Interesting turnaround story with huge cash pile and cheap valuation, but still a China-regulation-crippled business that hasn't proven it can grow profitably long-term.

👀 WATCH Fundamentals67/100

Down 94% from its all-time high of $29.51 — now $1.71

Why RLX dropped

RLX crashed 94% from its 2021 IPO peak because China's government brought e-cigarettes under strict state tobacco monopoly rules starting in 2021-2022 (online sales ban, 36% excise tax, mandatory national standards, flavor bans), which gutted its once-dominant domestic vaping business and its revenue and margins.

Fwd P/E 10.5Op margin 14.2%Rev growth 15.5%Debt/equity 1.6%Analyst upside 62.3%

How this scored 67/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 21.9%

✅ Generates cash Free cash flow $-621M

✅ Not drowning in debt Debt/equity 1.6% (limit 200%)

✅ Can pay its bills Current ratio 10.6 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 14/25

Operating margin 14.2% 5/9

Net profit margin 21.9% 8/8

Return on equity 6.3% 1/8

Growth Is it getting bigger, or dying? 16/25

Revenue growth 15.5% 6/9

Earnings growth 0.6% 2/8

Expected profit change 48.2% 8/8

Value Is it cheap right now? 19/25

Forward P/E 10.5 9/10

PEG ratio unknown 2/8

Analyst target upside 62.3% 7/7

Balance sheet Will it survive? 18/25

Debt / equity 1.6% 10/10

Current ratio 10.6 8/8

Free cash flow $-621M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-25. Research only — not financial advice.