Deep Value: cash covers about 90% of the stock price

This company holds roughly $2.1B in cash and investments — about 90% of its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

RLX Technology

RLX

Tobacco · Consumer Defensive

Price

$1.81

+0.00 (+0.00%)

Market Cap

$2.21B

Exchange

New York Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Exceptional

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Good

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Share count falling — buybacks

−13.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.41B (2021) → 1.22B (2025)

Winston Score History

The full picture

RLX Technology is a Chinese company that makes electronic cigarettes and vaping products. Its main brand is RELX, which sells sleek, pod-based e-cigarettes to adult smokers in China who are looking for an alternative to traditional cigarettes. RLX is one of the largest e-cigarette brands in China by market share.

The company makes money by selling its vaping devices and replacement pods through retail stores, online channels, and a network of authorized shops across China. Nearly all of its revenue comes from mainland China, making it heavily dependent on one market. The biggest risk RLX faces is government regulation — Chinese authorities have tightened rules on e-cigarettes significantly, including requiring products to meet national standards and restricting flavors, which has pressured sales and profitability. How well RLX adapts to this stricter regulatory environment will largely determine its future growth.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

¥127M/ year

↑ Rising (+44% vs prior year)

3.6% of revenue

1.8x the sector average (2%)

R&D investment increasing — building for the future

Insider Activity

31.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

¥13.9B cash & investments at current burn rate

Growth context

RLX Technology is growing revenue at 15% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

39.0%

Modest — 39.0% gross margin

Profit after running costs

Operating Margin

14.2%

Healthy — 14.2% operating margin

Return on the money invested

ROCE

3.7%

Weak — 3.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+53.3%

Fast-growing sales (+53.3% YoY)

Profit growth

EPS YoY

+34.6%

Earnings growing fast (+34.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

85%

Modest — 85% of profit becomes cash

Spare cash per sale

FCF Margin

15.9%

Converts sales into free cash efficiently (15.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

15.2x

Fair value — P/E 15.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+1.6

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

5.88%

Healthy income — 5.88% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

N/A

Data not available

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