REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
USA - NASDAQ:REYN - US76171L1061 - Common Stock
23.63 USD
+0.13 (+0.55%)
23.63 USD
0 (0%)
REYN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
In the past year REYN was profitable.
In the past year REYN had a positive cash flow from operations.
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
With a Return On Assets value of 6.40%, REYN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
REYN has a Return On Equity (14.48%) which is comparable to the rest of the industry.
REYN has a Return On Invested Capital (9.57%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for REYN is significantly below the industry average of 15.54%.
The last Return On Invested Capital (9.57%) for REYN is above the 3 year average (8.77%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 8.44%, REYN is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of REYN has grown nicely.
REYN has a Operating Margin of 14.46%. This is comparable to the rest of the industry: REYN outperforms 41.67% 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 25.34%, REYN is doing worse than 91.67% of the companies in the same industry.
REYN's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, REYN has about the same amount of shares outstanding.
REYN has more shares outstanding than it did 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 2.54. 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.
Looking at the Altman-Z score, with a value of 2.54, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
The Debt to FCF ratio of REYN is 5.41, which is a neutral value as it means it would take REYN, 5.41 years of fcf income to pay off all of its debts.
REYN has a Debt to FCF ratio of 5.41. This is in the lower half of the industry: REYN underperforms 75.00% of its industry peers.
REYN has a Debt/Equity ratio of 0.75. This is a neutral value indicating REYN is somewhat dependend on debt financing.
REYN has a Debt to Equity ratio of 0.75. This is comparable 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 | 2.54 |
ROIC/WACC1.28
WACC7.5%
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.
The Current ratio of REYN (1.85) is comparable to the rest of the industry.
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.
REYN has a Quick ratio of 0.75. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for REYN have decreased by -5.85% in the last year.
The Earnings Per Share has been growing by 8.55% on average over the past years. This is quite good.
The Revenue has decreased by -0.49% in the past year.
The Revenue has been growing slightly by 4.03% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.17% on average over the next years.
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%
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
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
REYN is valuated correctly with a Price/Earnings ratio of 14.68.
REYN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of REYN to the average of the S&P500 Index (27.40), we can say REYN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.07, REYN is valued correctly.
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.
REYN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
REYN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REYN indicates a somewhat cheap valuation: REYN is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.46 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y0%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 3.07, REYN pays a bit more dividend than its industry peers.
REYN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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 61.74% of its income as dividend. This is not a sustainable payout ratio.
DP61.74%
EPS Next 2Y0%
EPS Next 3Y1.68%
23.63
+0.13 (+0.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners28.46%
Inst Owner Change-0.06%
Ins Owners0.27%
Ins Owner Change0.01%
Market Cap4.97B
Analysts75.71
Price Target26.96 (14.09%)
Short Float %8.43%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)0%
PT rev (3m)-0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 14.07 | ||
| P/S | 1.35 | ||
| P/FCF | 16.46 | ||
| P/OCF | 10.97 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)1.61
EY6.81%
EPS(NY)1.68
Fwd EY7.11%
FCF(TTM)1.44
FCFY6.08%
OCF(TTM)2.15
OCFY9.11%
SpS17.52
BVpS10.21
TBVpS-3.35
PEG (NY)N/A
PEG (5Y)1.72
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 | 2.54 |
F-Score4
WACC7.5%
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%
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 Year18.55%
EBIT Next 3Y7.81%
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%