Is RLX Technology Inc. (RLX) Stock Cheap Or Risky?

As of Friday close, RLX Technology Inc.’s (NYSE:RLX) stock was up $0.06, moving up 3.19 percent to $1.94. The average number of shares traded per day over the past five days has been 6,498,180 shares. 3 times new highs have been achieved over the past 5 days, with a $0.0800 gain in that time frame. In the last twenty days, the average volume was 6,913,775, while in the previous 50 days, it was 18,516,088.


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Since last month, RLX stock retreated -8.06%. Shares of the company fell to $1.6700 on 05/10/22, the lowest level in the past month. A 52-week high of $12.76 was reached on 01/03/22 after having rallying from a 52-week low of $1.16. Since the beginning of this year, RLX’s stock price has dropped by -50.26% or -$1.9600, and marked a new high 1 time. However, the stock has declined by -84.80% since its 52-week high.

Valuation Metrics

Right now, RLX Technology Inc. (RLX) has a P/E ratio of about 8.62. Besides these, the trailing price-to-sales (P/S) ratio of 2.45, the price-to-book (PB) ratio of 1.28.

Financial Health

In the three months ended December 30, RLX Technology Inc.’s quick ratio stood at 4.90, while its current ratio was 5.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 43.10% percent. In the year ended December 30, operating margins totaled 27.00%. Based on annual data, RLX earned $576.23 million in gross profit and brought in $1.34 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 12.30%. Return on equity (ROE) for the past 12 months was 15.60%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected RLX Technology Inc. to report $0.04 quarterly earnings, the actual figure was $0.05 per share, beating the consensus estimate by 25.00%. During the quarter, the company generated $86.86 million in EBITDA. The liabilities of RLX Technology Inc. were 446.66 million at the end of its most recent quarter ended December 30, and its total debt was $201.12 million.

Technical Picture

This quick technical analysis looks at RLX Technology Inc.’s (RLX) price momentum. With a historical volatility rate of 69.75%, the RSI 9-day stood at 53.26% on 13 May.

With respect to its five-day moving average, the current RLX Technology Inc. price is up by +4.30% percent or $0.0800. At present, RLX shares trade -5.83% below its 20-day simple moving average and -45.35% percent below its 100-day simple moving average. However, the stock is currently trading approximately -30.22% below its SMA50 and -56.60% below its SMA200.

Stochastic coefficient K was 36.42% and Stochastic coefficient D was 25.51%, while ATR was 0.1719. Given the Stochastic reading of 50.00% for the 14-day period, the RSI (14) reading has been calculated as 49.63%. As of today, the MACD Oscillator reading stands at -0.0111, while the 14-day reading stands at -0.0612.

Analyst Ratings

BofA Securities launched its rating on RLX Technology Inc. (NYSE: RLX) to a Neutral in a note to investors on November 01, 2021. RLX Technology Inc. (RLX) has been rated Hold by analysts. According to 1 brokerage firm, RLX is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate RLX Technology Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $23.74, the current consensus forecast for the stock is $8.22 – $95.39. Based on these forecasts, analysts predict RLX Technology Inc. (RLX) will achieve an average price target of $37.77.

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