REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
NASDAQ:REYN - Nasdaq - US76171L1061 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to REYN. REYN was compared to 12 industry peers in the Household Products industry. REYN has only an average score on both its financial health and profitability. REYN has a decent growth rate and is not valued too expensively.
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.
REYN had positive earnings in each of the past 5 years.
REYN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 7.62%, REYN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
REYN has a Return On Equity of 17.87%. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
REYN's Return On Invested Capital of 10.16% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REYN is significantly below the industry average of 15.62%.
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
Looking at the Profit Margin, with a value of 10.03%, REYN is in the better half of the industry, outperforming 66.67% 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 15.60% 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.
REYN's Gross Margin of 27.32% is on the low side compared to the rest of the industry. REYN is outperformed by 91.67% of its industry peers.
In the last couple of years the Gross Margin of REYN has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REYN is still creating some value.
REYN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, REYN has more shares outstanding
Compared to 1 year ago, REYN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.75 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
REYN has a Altman-Z score (2.75) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 4.11, REYN is doing worse than 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that REYN is somewhat dependend on debt financing.
REYN has a Debt to Equity ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.27
WACC7.98%
2.3 Liquidity
A Current Ratio of 2.03 indicates that REYN has no problem at all paying its short term obligations.
REYN's Current ratio of 2.03 is in line compared to the rest of the industry. REYN outperforms 58.33% of its industry peers.
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
REYN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.62%, which is quite impressive.
Measured over the past years, REYN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.28% on average per year.
The Revenue has decreased by -4.12% in the past year.
The Revenue has been growing slightly by 3.63% on average over the past years.
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 Y20.72%
EPS Next 2Y12.37%
EPS Next 3Y10.21%
EPS Next 5Y8.05%
Revenue Next Year-2.95%
Revenue Next 2Y-0.65%
Revenue Next 3Y0.24%
Revenue Next 5Y1.08%
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
A Price/Earnings ratio of 15.89 indicates a correct valuation of REYN.
Based on the Price/Earnings ratio, REYN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.47, REYN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.51, the valuation of REYN can be described as correct.
Based on the Price/Forward Earnings ratio, REYN is valued a bit cheaper than 75.00% of the companies in the same industry.
REYN is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REYN.
66.67% 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 | 13.85 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
REYN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.77
PEG (5Y)1.55
EPS Next 2Y12.37%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, REYN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.49, REYN pays a better dividend. On top of this REYN pays more dividend than 83.33% of the companies listed in the same industry.
REYN's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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 2Y12.37%
EPS Next 3Y10.21%
REYNOLDS CONSUMER PRODUCTS I
NASDAQ:REYN (2/4/2025, 8:04:35 PM)
After market: 27.81 0 (0%)27.81
-0.3 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners28.17%
Inst Owner Change0.18%
Ins Owners0.19%
Ins Owner Change0%
Market Cap5.84B
Analysts74.67
Price Target32.26 (16%)
Short Float %4.19%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend0.91
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)-0.13%
PT rev (3m)-4.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 15.51 | ||
| P/S | 1.59 | ||
| P/FCF | 13.85 | ||
| P/OCF | 11.07 | ||
| P/B | 2.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)1.75
EY6.29%
EPS(NY)1.79
Fwd EY6.45%
FCF(TTM)2.01
FCFY7.22%
OCF(TTM)2.51
OCFY9.03%
SpS17.51
BVpS9.83
TBVpS-3.85
PEG (NY)0.77
PEG (5Y)1.55
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 | 2.75 |
F-Score6
WACC7.98%
ROIC/WACC1.27
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 Y20.72%
EPS Next 2Y12.37%
EPS Next 3Y10.21%
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-0.65%
Revenue Next 3Y0.24%
Revenue Next 5Y1.08%
EBIT growth 1Y21.35%
EBIT growth 3Y-6.03%
EBIT growth 5Y-0.04%
EBIT Next Year33.45%
EBIT Next 3Y12.45%
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%