REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
NASDAQ:REYN - Nasdaq - US76171L1061 - Common Stock - Currency: USD
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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
REYN had positive earnings in the past year.
REYN had a positive operating cash flow in the past year.
In the past 5 years REYN has always been profitable.
In the past 5 years REYN always reported a positive cash flow from operatings.
1.2 Ratios
REYN has a Return On Assets of 7.24%. This is comparable to the rest of the industry: REYN outperforms 50.00% of its industry peers.
The Return On Equity of REYN (16.48%) is comparable to the rest of the industry.
REYN has a Return On Invested Capital (9.73%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for REYN is significantly below the industry average of 15.71%.
The 3 year average ROIC (8.77%) for REYN is below the current ROIC(9.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 16.48% | ||
| ROIC | 9.73% |
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
With a Profit Margin value of 9.56%, REYN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of REYN has grown nicely.
REYN's Operating Margin of 14.84% is in line compared to the rest of the industry. REYN outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of REYN has declined.
Looking at the Gross Margin, with a value of 26.43%, REYN is doing worse than 91.67% of the companies in the same industry.
In the last couple of years the Gross Margin of REYN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.84% | ||
| PM (TTM) | 9.56% | ||
| GM | 26.43% |
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.
Compared to 1 year ago, REYN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
REYN has a Altman-Z score of 2.60. This is in the lower half of the industry: REYN underperforms 75.00% of its industry peers.
REYN has a debt to FCF ratio of 4.57. This is a neutral value as REYN would need 4.57 years to pay back of all of its debts.
REYN's Debt to FCF ratio of 4.57 is on the low side compared to the rest of the industry. REYN is outperformed by 75.00% of its industry peers.
REYN has a Debt/Equity ratio of 0.79. This is a neutral value indicating REYN is somewhat dependend on debt financing.
REYN's Debt to Equity ratio of 0.79 is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.26
WACC7.75%
2.3 Liquidity
REYN has a Current Ratio of 2.04. This indicates that REYN is financially healthy and has no problem in meeting its short term obligations.
REYN has a Current ratio of 2.04. This is comparable to the rest of the industry: REYN outperforms 58.33% of its industry peers.
A Quick Ratio of 0.99 indicates that REYN may have some problems paying its short term obligations.
The Quick ratio of REYN (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
REYN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.31%, which is quite good.
The Earnings Per Share has been growing by 8.55% on average over the past years. This is quite good.
REYN shows a decrease in Revenue. In the last year, the revenue decreased by -1.65%.
REYN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.03% yearly.
EPS 1Y (TTM)18.31%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%-10.77%
Revenue 1Y (TTM)-1.65%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%1.39%
3.2 Future
REYN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.38% yearly.
The Revenue is expected to grow by 2.14% on average over the next years.
EPS Next Y0.93%
EPS Next 2Y3.32%
EPS Next 3Y4.23%
EPS Next 5Y5.38%
Revenue Next Year0.24%
Revenue Next 2Y0.82%
Revenue Next 3Y1.56%
Revenue Next 5Y2.14%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.55, REYN is valued correctly.
REYN's Price/Earnings ratio is a bit cheaper when compared to the industry. REYN is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, REYN is valued rather cheaply.
The Price/Forward Earnings ratio is 14.41, which indicates a correct valuation of REYN.
Based on the Price/Forward Earnings ratio, REYN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, REYN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 14.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REYN.
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 | 13.92 | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REYN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)15.69
PEG (5Y)1.7
EPS Next 2Y3.32%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.57, REYN pays a better dividend. On top of this REYN pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, REYN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
REYN pays out 54.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.39%
EPS Next 2Y3.32%
EPS Next 3Y4.23%
24.44
+0.57 (+2.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners27.51%
Inst Owner Change0.89%
Ins Owners0.25%
Ins Owner Change0.05%
Market Cap5.14B
Analysts74.67
Price Target30.86 (26.27%)
Short Float %4.31%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend0.91
Dividend Growth(5Y)N/A
DP54.39%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.28%
Min EPS beat(2)-3.12%
Max EPS beat(2)-1.45%
EPS beat(4)2
Avg EPS beat(4)-0.18%
Min EPS beat(4)-3.12%
Max EPS beat(4)3.02%
EPS beat(8)4
Avg EPS beat(8)0.75%
EPS beat(12)5
Avg EPS beat(12)-0.22%
EPS beat(16)8
Avg EPS beat(16)-0.01%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)3%
Revenue beat(4)3
Avg Revenue beat(4)1.07%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)3%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)4
Avg Revenue beat(12)-1.26%
Revenue beat(16)5
Avg Revenue beat(16)-1.44%
PT rev (1m)-4.35%
PT rev (3m)-4.47%
EPS NQ rev (1m)-7.45%
EPS NQ rev (3m)-6.77%
EPS NY rev (1m)-5.44%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)-2.79%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 14.41 | ||
| P/S | 1.39 | ||
| P/FCF | 13.92 | ||
| P/OCF | 10.5 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.88 |
EPS(TTM)1.68
EY6.87%
EPS(NY)1.7
Fwd EY6.94%
FCF(TTM)1.76
FCFY7.18%
OCF(TTM)2.33
OCFY9.52%
SpS17.57
BVpS10.19
TBVpS-3.45
PEG (NY)15.69
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 16.48% | ||
| ROCE | 12.64% | ||
| ROIC | 9.73% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 31.7% | ||
| OM | 14.84% | ||
| PM (TTM) | 9.56% | ||
| GM | 26.43% | ||
| FCFM | 9.99% |
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-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 93.02% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 5.59 | ||
| Cash Conversion | 72.23% | ||
| Profit Quality | 104.53% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.6 |
F-Score6
WACC7.75%
ROIC/WACC1.26
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)18.31%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%-10.77%
EPS Next Y0.93%
EPS Next 2Y3.32%
EPS Next 3Y4.23%
EPS Next 5Y5.38%
Revenue 1Y (TTM)-1.65%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%1.39%
Revenue Next Year0.24%
Revenue Next 2Y0.82%
Revenue Next 3Y1.56%
Revenue Next 5Y2.14%
EBIT growth 1Y7.03%
EBIT growth 3Y3.72%
EBIT growth 5Y1.48%
EBIT Next Year27.17%
EBIT Next 3Y11.11%
EBIT Next 5Y7.89%
FCF growth 1Y-31.67%
FCF growth 3Y29.73%
FCF growth 5Y4.65%
OCF growth 1Y-24.07%
OCF growth 3Y16.41%
OCF growth 5Y3.94%