RLX TechnologyRLX -0.52%68 Return-on-Tangible-Equity is 7.66% as of Mar. 2026, which is 64% above its 10-year median of 4.66. GuruFocus rates RLX with a GF Score™ of 68/100 and a GF Value™ of $4.13 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 44 Tobacco Products companies, RLX Technology ranks worse than 72.73% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. RLX Technology's annualized net income for the quarter that ended in Mar. 2026 was $164.9 Mil. RLX Technology's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $2,151.7 Mil. Therefore, RLX Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.66%.
The historical rank and industry rank for RLX Technology's Return-on-Tangible-Equity or its related term are showing as below:
RLX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -15.95 Med: 4.66 Max: 88.86
Current: 6.36
During the past 8 years, RLX Technology's highest Return-on-Tangible-Equity was 88.86%. The lowest was -15.95%. And the median was 4.66%.
RLX's Return-on-Tangible-Equity is ranked worse than 72.73% of 44
companies
in the Tobacco Products industry
Industry Median: 25.395
vs RLX: 6.36
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
RLX Technology Return-on-Tangible-Equity Related Terms
RLX Technology Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RLX Technology's Return-on-Tangible-Equity 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.
RLX vs TPB, UVV, AIIR: Return-on-Tangible-Equity Comparison
For the Tobacco subindustry, RLX Technology's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, RLX Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RLX Technology's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.66% mean?
RLX Technology (RLX) has a Return-on-Tangible-Equity of 7.66% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RLX Technology and its competitors. This is 64% above median its historical median of 4.66. According to the industry distribution chart, RLX Technology ranks #32 out of 44 companies in the Tobacco Products industry, placing it in the top 72.7%.
Is RLX Technology's Return-on-Tangible-Equity too high?
RLX Technology's current Return-on-Tangible-Equity of 7.66% is 64% above median its 10-year median of 4.66. The Tobacco Products industry median Return-on-Tangible-Equity is 25.40. RLX Technology's value of 7.66% is 69.8% below this industry median. Based on the distribution chart, RLX Technology ranks #32 out of 44 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, RLX Technology has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RLX Technology's Return-on-Tangible-Equity compare to TPB and UVV?
According to the Tobacco Products industry distribution chart, RLX Technology ranks #32 out of 44 companies for Return-on-Tangible-Equity. This places RLX Technology in the lower half of its industry. The industry median Return-on-Tangible-Equity is 25.40. RLX Technology's value of 7.66% is 69.8% below this benchmark. While the company's 10-year median is 4.66 vs. the industry median of 25.40, RLX Technology has consistently been below 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 Return-on-Tangible-Equity for a Tobacco Products company?
The median Return-on-Tangible-Equity among Tobacco Products companies is 25.40, based on 44 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLX Technology's current Return-on-Tangible-Equity of 7.66% is 69.8% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RLX Technology and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Equity is 25.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLX Technology's current Return-on-Tangible-Equity is 7.66%, which is 64% above median its own 10-year median of 4.66. 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 (RLX) is currently considered Significantly Undervalued. The stock's GF Value™ is $4.13, compared to a current price of $1.93 — trading 53.3% below its estimated fair value. The current Return-on-Tangible-Equity is 7.66%, which is 64% above median its 10-year median of 4.66 and 69.8% below the Tobacco Products industry median of 25.40. RLX Technology's overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For RLX Technology (RLX), the current Return-on-Tangible-Equity is 7.66% 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 (RLX) Overvalued in 2026?
Based on GuruFocus' analysis, RLX Technology stock appears to be undervalued.
The current stock price of $1.93 is trading 53.3% below its estimated GF Value™ of $4.13.
GuruFocus considers RLX Technology to be Significantly Undervalued.
Key valuation signals for RLX:
Return-on-Tangible-Equity: 7.66% (64% above median its 10-year median of 4.66)
GF Value™: $4.13 vs. price of $1.93 (53.3% below fair value)
Industry Position: 69.8% below the Tobacco Products median (#32 of 44)
No single metric tells the full story. See the RLX 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.
68GF Score
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