REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
USA - NASDAQ:REYN - US76171L1061 - Common Stock
22.63 USD
-0.4 (-1.74%)
22.63 USD
0 (0%)
Taking everything into account, REYN scores 4 out of 10 in our fundamental rating. REYN was compared to 12 industry peers in the Household Products industry. REYN has a medium profitability rating, but doesn't score so well on its financial health evaluation. REYN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year REYN was profitable.
REYN had a positive operating cash flow in the past year.
In the past 5 years REYN has always been profitable.
Each year in the past 5 years REYN had a positive operating cash flow.
1.2 Ratios
REYN has a Return On Assets (6.40%) which is in line with its industry peers.
REYN's Return On Equity of 14.48% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
REYN's Return On Invested Capital of 9.57% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
REYN had an Average Return On Invested Capital over the past 3 years of 8.77%. This is significantly below the industry average of 15.56%.
The 3 year average ROIC (8.77%) for REYN is below the current ROIC(9.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 14.48% | ||
| ROIC | 9.57% |
ROA(3y)6.23%
ROA(5y)6.62%
ROE(3y)15.09%
ROE(5y)17.24%
ROIC(3y)8.77%
ROIC(5y)9.22%
1.3 Margins
REYN has a Profit Margin of 8.44%. This is in the lower half of the industry: REYN underperforms 66.67% of its industry peers.
REYN's Profit Margin has improved in the last couple of years.
REYN has a Operating Margin (14.46%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of REYN has declined.
The Gross Margin of REYN (25.34%) is worse than 91.67% of its industry peers.
In the last couple of years the Gross Margin of REYN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.46% | ||
| PM (TTM) | 8.44% | ||
| GM | 25.34% |
OM growth 3Y2.4%
OM growth 5Y-2.45%
PM growth 3Y1.5%
PM growth 5Y5.12%
GM growth 3Y5.09%
GM growth 5Y-1.83%
2. Health
2.1 Basic Checks
REYN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for REYN remains at a similar level compared to 1 year ago.
The number of shares outstanding for REYN has been increased compared to 5 years ago.
REYN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.51, REYN is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
REYN has a debt to FCF ratio of 5.41. This is a neutral value as REYN would need 5.41 years to pay back of all of its debts.
The Debt to FCF ratio of REYN (5.41) is worse than 75.00% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that REYN is somewhat dependend on debt financing.
REYN's Debt to Equity ratio of 0.75 is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.28
WACC7.49%
2.3 Liquidity
REYN has a Current Ratio of 1.85. This is a normal value and indicates that REYN is financially healthy and should not expect problems in meeting its short term obligations.
REYN's Current ratio of 1.85 is in line compared to the rest of the industry. REYN outperforms 58.33% of its industry peers.
REYN has a Quick Ratio of 1.85. This is a bad value and indicates that REYN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of REYN (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
REYN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.85%.
The Earnings Per Share has been growing by 8.55% on average over the past years. This is quite good.
Looking at the last year, REYN shows a decrease in Revenue. The Revenue has decreased by -0.49% in the last year.
Measured over the past years, REYN shows a small growth in Revenue. The Revenue has been growing by 4.03% on average per year.
EPS 1Y (TTM)-5.85%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%-15.22%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%0.86%
3.2 Future
REYN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.17% yearly.
REYN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.44% yearly.
EPS Next Y-4.17%
EPS Next 2Y0.17%
EPS Next 3Y1.68%
EPS Next 5Y3.17%
Revenue Next Year0.24%
Revenue Next 2Y1.06%
Revenue Next 3Y1.32%
Revenue Next 5Y1.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
REYN is valuated correctly with a Price/Earnings ratio of 14.06.
Compared to the rest of the industry, the Price/Earnings ratio of REYN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.27. REYN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.42, which indicates a correct valuation of REYN.
REYN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REYN is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. REYN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REYN is valued a bit cheaper than 66.67% of the companies in the same industry.
REYN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REYN is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.76 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y0.17%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 2.86, REYN pays a better dividend. On top of this REYN pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, REYN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
REYN has been paying a dividend for over 5 years, so it has already some track record.
REYN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
61.74% of the earnings are spent on dividend by REYN. This is not a sustainable payout ratio.
DP61.74%
EPS Next 2Y0.17%
EPS Next 3Y1.68%
22.63
-0.4 (-1.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners23.51%
Inst Owner Change1.36%
Ins Owners0.27%
Ins Owner Change0.01%
Market Cap4.76B
Analysts75.71
Price Target26.96 (19.13%)
Short Float %9.83%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend0.91
Dividend Growth(5Y)N/A
DP61.74%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.14%
Min EPS beat(2)-2.43%
Max EPS beat(2)0.16%
EPS beat(4)1
Avg EPS beat(4)-1.71%
Min EPS beat(4)-3.12%
Max EPS beat(4)0.16%
EPS beat(8)4
Avg EPS beat(8)-0.16%
EPS beat(12)6
Avg EPS beat(12)-0.33%
EPS beat(16)8
Avg EPS beat(16)-0.02%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-4.28%
Max Revenue beat(2)2.28%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-4.28%
Max Revenue beat(4)3%
Revenue beat(8)4
Avg Revenue beat(8)-0.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.74%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)1.09%
PT rev (3m)-0.54%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-3.53%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 13.42 | ||
| P/S | 1.29 | ||
| P/FCF | 15.76 | ||
| P/OCF | 10.51 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.67 |
EPS(TTM)1.61
EY7.11%
EPS(NY)1.69
Fwd EY7.45%
FCF(TTM)1.44
FCFY6.34%
OCF(TTM)2.15
OCFY9.52%
SpS17.52
BVpS10.21
TBVpS-3.35
PEG (NY)N/A
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 14.48% | ||
| ROCE | 12.44% | ||
| ROIC | 9.57% | ||
| ROICexc | 9.7% | ||
| ROICexgc | 29.8% | ||
| OM | 14.46% | ||
| PM (TTM) | 8.44% | ||
| GM | 25.34% | ||
| FCFM | 8.19% |
ROA(3y)6.23%
ROA(5y)6.62%
ROE(3y)15.09%
ROE(5y)17.24%
ROIC(3y)8.77%
ROIC(5y)9.22%
ROICexc(3y)8.98%
ROICexc(5y)9.59%
ROICexgc(3y)28.11%
ROICexgc(5y)32.48%
ROCE(3y)11.39%
ROCE(5y)11.99%
ROICexcg growth 3Y0.89%
ROICexcg growth 5Y-11.31%
ROICexc growth 3Y3.45%
ROICexc growth 5Y-1.15%
OM growth 3Y2.4%
OM growth 5Y-2.45%
PM growth 3Y1.5%
PM growth 5Y5.12%
GM growth 3Y5.09%
GM growth 5Y-1.83%
F-Score4
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.41 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 115.27% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 6.06 | ||
| Cash Conversion | 68.22% | ||
| Profit Quality | 97.11% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.51 |
F-Score4
WACC7.49%
ROIC/WACC1.28
Cap/Depr(3y)95.43%
Cap/Depr(5y)112.02%
Cap/Sales(3y)3.12%
Cap/Sales(5y)3.54%
Profit Quality(3y)107.1%
Profit Quality(5y)84.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.85%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%-15.22%
EPS Next Y-4.17%
EPS Next 2Y0.17%
EPS Next 3Y1.68%
EPS Next 5Y3.17%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%0.86%
Revenue Next Year0.24%
Revenue Next 2Y1.06%
Revenue Next 3Y1.32%
Revenue Next 5Y1.44%
EBIT growth 1Y-6.49%
EBIT growth 3Y3.72%
EBIT growth 5Y1.48%
EBIT Next Year18.7%
EBIT Next 3Y7.85%
EBIT Next 5Y5.72%
FCF growth 1Y49.51%
FCF growth 3Y29.73%
FCF growth 5Y4.65%
OCF growth 1Y39.38%
OCF growth 3Y16.41%
OCF growth 5Y3.94%