REYNOLDS CONSUMER PRODUCTS I (REYN)
US76171L1061 - Common Stock
Overall REYN gets a fundamental rating of 4 out of 10. We evaluated REYN against 12 industry peers in the Household Products industry. While REYN is still in line with the averages on profitability rating, there are concerns on its financial health. REYN is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years REYN has 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 (7.62%) which is in line with its industry peers.
REYN's Return On Equity of 17.87% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.16%, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REYN is significantly below the industry average of 15.22%.
The last Return On Invested Capital (10.16%) for REYN is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 17.87% | ||
| ROIC | 10.16% |
ROA(3y)6.07%
ROA(5y)6.26%
ROE(3y)15.76%
ROE(5y)N/A
ROIC(3y)8.34%
ROIC(5y)9.24%
1.3 Margins
REYN has a Profit Margin of 10.03%. This is in the better half of the industry: REYN outperforms 66.67% of its industry peers.
REYN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 15.60%, REYN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
REYN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.32%, REYN is doing worse than 91.67% of the companies in the same industry.
REYN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.6% | ||
| PM (TTM) | 10.03% | ||
| GM | 27.32% |
OM growth 3Y-10.33%
OM growth 5Y-3.54%
PM growth 3Y-10.66%
PM growth 5Y7.21%
GM growth 3Y-5.61%
GM growth 5Y-1.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REYN is creating some value.
Compared to 1 year ago, REYN has about the same amount of shares outstanding.
The number of shares outstanding for REYN has been increased compared to 5 years ago.
The debt/assets ratio for REYN has been reduced compared to a year ago.
2.2 Solvency
REYN has an Altman-Z score of 2.71. This is not the best score and indicates that REYN is in the grey zone with still only limited risk for bankruptcy at the moment.
REYN has a Altman-Z score of 2.71. This is in the lower half of the industry: REYN underperforms 66.67% of its industry peers.
REYN has a debt to FCF ratio of 4.11. This is a neutral value as REYN would need 4.11 years to pay back of all of its debts.
REYN has a worse Debt to FCF ratio (4.11) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that REYN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.28
WACC7.94%
2.3 Liquidity
REYN has a Current Ratio of 2.03. This indicates that REYN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.03, REYN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that REYN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.62% over the past year.
REYN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.28% yearly.
REYN shows a decrease in Revenue. In the last year, the revenue decreased by -4.12%.
REYN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.63% yearly.
EPS 1Y (TTM)34.62%
EPS 3Y-10.49%
EPS 5Y10.28%
EPS Q2Q%10.81%
Revenue 1Y (TTM)-4.12%
Revenue growth 3Y4.8%
Revenue growth 5Y3.63%
Sales Q2Q%-2.67%
3.2 Future
REYN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.05% yearly.
The Revenue is expected to grow by 1.08% on average over the next years.
EPS Next Y20.64%
EPS Next 2Y12.13%
EPS Next 3Y9.97%
EPS Next 5Y8.05%
Revenue Next Year-2.95%
Revenue Next 2Y-0.8%
Revenue Next 3Y0.11%
Revenue Next 5Y1.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 15.58, which indicates a correct valuation of REYN.
83.33% of the companies in the same industry are more expensive than REYN, based on the Price/Earnings ratio.
REYN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
The Price/Forward Earnings ratio is 15.27, which indicates a correct valuation of REYN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REYN indicates a rather cheap valuation: REYN is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of REYN to the average of the S&P500 Index (23.99), we can say REYN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 15.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REYN.
75.00% of the companies in the same industry are more expensive than REYN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.58 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.75
PEG (5Y)1.52
EPS Next 2Y12.13%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, REYN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.40, 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 2.36, REYN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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
52.03% of the earnings are spent on dividend by REYN. This is a bit on the high side, but may be sustainable.
DP52.03%
EPS Next 2Y12.13%
EPS Next 3Y9.97%
REYNOLDS CONSUMER PRODUCTS I
NASDAQ:REYN (12/24/2024, 3:25:28 PM)
After market: 27.26 0 (0%)27.26
+0.07 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners28.17%
Inst Owner Change-3.03%
Ins Owners0.19%
Ins Owner Change0%
Market Cap5.73B
Analysts74.67
Price Target32.3 (18.49%)
Short Float %3.28%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Dividend Growth(5Y)N/A
DP52.03%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.05%
Min EPS beat(2)-3.12%
Max EPS beat(2)3.02%
EPS beat(4)3
Avg EPS beat(4)0.88%
Min EPS beat(4)-3.12%
Max EPS beat(4)3.02%
EPS beat(8)4
Avg EPS beat(8)-0.27%
EPS beat(12)6
Avg EPS beat(12)0.11%
EPS beat(16)8
Avg EPS beat(16)-0.02%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)2.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)2.32%
Revenue beat(8)3
Avg Revenue beat(8)-0.83%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-1.69%
PT rev (1m)-4.04%
PT rev (3m)-0.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 15.27 | ||
| P/S | 1.56 | ||
| P/FCF | 13.58 | ||
| P/OCF | 10.85 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)1.75
EY6.42%
EPS(NY)1.79
Fwd EY6.55%
FCF(TTM)2.01
FCFY7.37%
OCF(TTM)2.51
OCFY9.22%
SpS17.51
BVpS9.83
TBVpS-3.85
PEG (NY)0.75
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 17.87% | ||
| ROCE | 13.35% | ||
| ROIC | 10.16% | ||
| ROICexc | 10.39% | ||
| ROICexgc | 32.86% | ||
| OM | 15.6% | ||
| PM (TTM) | 10.03% | ||
| GM | 27.32% | ||
| FCFM | 11.47% |
ROA(3y)6.07%
ROA(5y)6.26%
ROE(3y)15.76%
ROE(5y)N/A
ROIC(3y)8.34%
ROIC(5y)9.24%
ROICexc(3y)8.56%
ROICexc(5y)9.6%
ROICexgc(3y)27.53%
ROICexgc(5y)37.28%
ROCE(3y)10.96%
ROCE(5y)12.15%
ROICexcg growth 3Y-13.5%
ROICexcg growth 5Y8.88%
ROICexc growth 3Y-7.62%
ROICexc growth 5Y3.63%
OM growth 3Y-10.33%
OM growth 5Y-3.54%
PM growth 3Y-10.66%
PM growth 5Y7.21%
GM growth 3Y-5.61%
GM growth 5Y-1.08%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 82.81% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 5.52 | ||
| Cash Conversion | 75.21% | ||
| Profit Quality | 114.36% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 2.71 |
F-Score6
WACC7.94%
ROIC/WACC1.28
Cap/Depr(3y)107.54%
Cap/Depr(5y)117.37%
Cap/Sales(3y)3.36%
Cap/Sales(5y)3.61%
Profit Quality(3y)89.55%
Profit Quality(5y)89.56%
High Growth Momentum
Growth
EPS 1Y (TTM)34.62%
EPS 3Y-10.49%
EPS 5Y10.28%
EPS Q2Q%10.81%
EPS Next Y20.64%
EPS Next 2Y12.13%
EPS Next 3Y9.97%
EPS Next 5Y8.05%
Revenue 1Y (TTM)-4.12%
Revenue growth 3Y4.8%
Revenue growth 5Y3.63%
Sales Q2Q%-2.67%
Revenue Next Year-2.95%
Revenue Next 2Y-0.8%
Revenue Next 3Y0.11%
Revenue Next 5Y1.08%
EBIT growth 1Y21.35%
EBIT growth 3Y-6.03%
EBIT growth 5Y-0.04%
EBIT Next Year33.46%
EBIT Next 3Y12.12%
EBIT Next 5Y8.97%
FCF growth 1Y134.44%
FCF growth 3Y45.31%
FCF growth 5Y3.81%
OCF growth 1Y72.55%
OCF growth 3Y26.39%
OCF growth 5Y3.97%