RLX TechnologyFRA:3CM +1.21%66 Net Margin % is 19.33% as of Mar. 2026, which is 17% below its 10-year median of 23.17. GuruFocus rates FRA:3CM with a GF Score™ of 66/100 and a GF Value™ of €3.53 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 48 Tobacco Products companies, RLX Technology ranks better than 75% on this metric.
Net margin is calculated as Net Income divided by its Revenue. RLX Technology's Net Income for the
three
months ended in Mar. 2026 was €35.7 Mil. RLX Technology's Revenue for the
three
months ended in Mar. 2026 was €184.5 Mil. Therefore, RLX Technology's net margin for the quarter that ended in Mar. 2026 was 19.33%.
The historical rank and industry rank for RLX Technology's Net Margin % or its related term are showing as below:
FRA:3CM'
s Net Margin % Range Over the Past 10 Years
Min: -3.35 Med: 23.17 Max: 42.95
Current: 22.44
FRA:3CM's Net Margin % is ranked better than 75% of 48
companies
in the Tobacco Products industry
Industry Median: 7.245
vs FRA:3CM: 22.44
RLX Technology (FRA:3CM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
RLX Technology Net Margin % Related Terms
RLX Technology Net Margin % Historical Data
* Premium members only.
The historical data trend for RLX Technology's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:3CM vs TPB, UVV, AIIR: Net Margin % Comparison
For the Tobacco subindustry, RLX Technology's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RLX Technology Net Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, RLX Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where RLX Technology's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RLX Technology (FRA:3CM) has a Net Margin % of 19.33% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on RLX Technology and its competitors. This is 17% below median its historical median of 23.17. According to the industry distribution chart, RLX Technology ranks #12 out of 48 companies in the Tobacco Products industry, placing it in the top 25%.
Is RLX Technology's Net Margin % too high?
RLX Technology's current Net Margin % of 19.33% is 17% below median its 10-year median of 23.17. The Tobacco Products industry median Net Margin % is 7.25. RLX Technology's value of 19.33% is 166.8% above this industry median. Based on the distribution chart, RLX Technology ranks #12 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, RLX Technology has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RLX Technology's Net Margin % compare to TPB and UVV?
According to the Tobacco Products industry distribution chart, RLX Technology ranks #12 out of 48 companies for Net Margin %. This places RLX Technology in the top 25% of its industry — outperforming the majority of peers. The industry median Net Margin % is 7.25. RLX Technology's value of 19.33% is 166.8% above this benchmark. While the company's 10-year median is 23.17 vs. the industry median of 7.25, RLX Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Tobacco Products company?
The median Net Margin % among Tobacco Products companies is 7.25, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLX Technology's current Net Margin % of 19.33% is 166.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on RLX Technology and its competitors. For the Tobacco Products industry, the median Net Margin % is 7.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLX Technology's current Net Margin % is 19.33%, which is 17% below median its own 10-year median of 23.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RLX Technology stock overvalued right now?
Based on GuruFocus' analysis, RLX Technology (FRA:3CM) is currently considered Significantly Undervalued. The stock's GF Value™ is €3.53, compared to a current price of €1.67 — trading 52.7% below its estimated fair value. The current Net Margin % is 19.33%, which is 17% below median its 10-year median of 23.17 and 166.8% above the Tobacco Products industry median of 7.25. RLX Technology's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For RLX Technology (FRA:3CM), the current Net Margin % is 19.33% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RLX Technology (FRA:3CM) Overvalued in 2026?
Based on GuruFocus' analysis, RLX Technology stock appears to be undervalued.
The current stock price of €1.67 is trading 52.7% below its estimated GF Value™ of €3.53.
GuruFocus considers RLX Technology to be Significantly Undervalued.
Key valuation signals for FRA:3CM:
Net Margin %: 19.33% (17% below median its 10-year median of 23.17)
GF Value™: €3.53 vs. price of €1.67 (52.7% below fair value)
Industry Position: 166.8% above the Tobacco Products median (#12 of 48)
No single metric tells the full story. See the FRA:3CM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RLX Technology Inc is engaged in the manufacturing of e-vapor products for adult smokers. It has an integrated offline distribution and "Branded store plus" retail model tailored to China's e-vapor market. The company has two reportable segments, Core Markets and Europe Acquisition. The majority of the revenue is earn from Core Markets segment.
66GF Score
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