REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
USA - NASDAQ:REYN - US76171L1061 - Common Stock
24.88 USD
+0.03 (+0.12%)
24.88 USD
0 (0%)
Taking everything into account, REYN scores 3 out of 10 in our fundamental rating. REYN was compared to 12 industry peers in the Household Products industry. There are concerns on the financial health of REYN while its profitability can be described as average. REYN is valued expensive and 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
Looking at the Return On Assets, with a value of 6.21%, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
REYN's Return On Equity of 13.94% is on the low side compared to the rest of the industry. REYN is outperformed by 66.67% of its industry peers.
REYN has a Return On Invested Capital (9.38%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REYN is significantly below the industry average of 15.15%.
The last Return On Invested Capital (9.38%) for REYN is above the 3 year average (8.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.94% | ||
| ROIC | 9.38% |
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 8.20%, REYN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of REYN has grown nicely.
REYN has a Operating Margin (14.27%) which is in line with 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 25.03%, 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 | 14.27% | ||
| PM (TTM) | 8.2% | ||
| GM | 25.03% |
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.
REYN has about the same amout of shares outstanding than it did 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 2.61 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
REYN's Altman-Z score of 2.61 is in line compared to the rest of the industry. REYN outperforms 50.00% of its industry peers.
The Debt to FCF ratio of REYN is 6.34, which is on the high side as it means it would take REYN, 6.34 years of fcf income to pay off all of its debts.
REYN has a Debt to FCF ratio of 6.34. This is in the lower half of the industry: REYN underperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that REYN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, REYN is in line with its industry, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.23
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.94 indicates that REYN should not have too much problems paying its short term obligations.
REYN has a Current ratio of 1.94. This is comparable to the rest of the industry: REYN outperforms 58.33% of its industry peers.
REYN has a Quick Ratio of 1.94. 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 0.80. This is comparable to the rest of the industry: REYN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for REYN have decreased by -7.43% in the last year.
Measured over the past years, REYN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.55% on average per year.
Looking at the last year, REYN shows a small growth in Revenue. The Revenue has grown by 0.76% in the last year.
The Revenue has been growing slightly by 4.03% on average over the past years.
EPS 1Y (TTM)-7.43%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%2.44%
Revenue 1Y (TTM)0.76%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%2.31%
3.2 Future
Based on estimates for the next years, REYN will show a small growth in Earnings Per Share. The EPS will grow by 4.11% on average per year.
REYN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.81% yearly.
EPS Next Y-1.01%
EPS Next 2Y2.56%
EPS Next 3Y2.94%
EPS Next 5Y4.11%
Revenue Next Year1.13%
Revenue Next 2Y1.55%
Revenue Next 3Y1.68%
Revenue Next 5Y1.81%
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
A Price/Earnings ratio of 15.36 indicates a correct valuation of REYN.
REYN's Price/Earnings ratio is in line with the industry average.
REYN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.08, which indicates a correct valuation of REYN.
REYN's Price/Forward Earnings is on the same level as the industry average.
REYN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 14.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as REYN.
The rest of the industry has a similar Price/Free Cash Flow ratio as REYN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.36 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y2.56%
EPS Next 3Y2.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.70%, REYN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.21, REYN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, REYN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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
63.16% of the earnings are spent on dividend by REYN. This is not a sustainable payout ratio.
DP63.16%
EPS Next 2Y2.56%
EPS Next 3Y2.94%
24.88
+0.03 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners28.46%
Inst Owner Change-6.6%
Ins Owners0.27%
Ins Owner Change0.01%
Market Cap5.23B
Revenue(TTM)3.71B
Net Income(TTM)304.00M
Analysts75.71
Price Target27.1 (8.92%)
Short Float %12.04%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend0.91
Dividend Growth(5Y)N/A
DP63.16%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.6%
Min EPS beat(2)0.16%
Max EPS beat(2)5.04%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-2.43%
Max EPS beat(4)5.04%
EPS beat(8)5
Avg EPS beat(8)0.6%
EPS beat(12)6
Avg EPS beat(12)-0.07%
EPS beat(16)8
Avg EPS beat(16)0.17%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.57%
Max Revenue beat(2)2.28%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-4.28%
Max Revenue beat(4)3%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)-1.08%
PT rev (1m)0.54%
PT rev (3m)1.64%
EPS NQ rev (1m)4.96%
EPS NQ rev (3m)4.96%
EPS NY rev (1m)3.3%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 14.08 | ||
| P/S | 1.41 | ||
| P/FCF | 20.36 | ||
| P/OCF | 12.4 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.29 |
EPS(TTM)1.62
EY6.51%
EPS(NY)1.77
Fwd EY7.1%
FCF(TTM)1.22
FCFY4.91%
OCF(TTM)2.01
OCFY8.06%
SpS17.62
BVpS10.36
TBVpS-3.17
PEG (NY)N/A
PEG (5Y)1.8
Graham Number19.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 13.94% | ||
| ROCE | 12.2% | ||
| ROIC | 9.38% | ||
| ROICexc | 9.5% | ||
| ROICexgc | 28.3% | ||
| OM | 14.27% | ||
| PM (TTM) | 8.2% | ||
| GM | 25.03% | ||
| FCFM | 6.93% |
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%
ROICexgc growth 3Y0.89%
ROICexgc 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 | 0.74 | ||
| Debt/FCF | 6.34 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 124.06% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 6.3 | ||
| Cash Conversion | 63.75% | ||
| Profit Quality | 84.54% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.61 |
F-Score4
WACC7.61%
ROIC/WACC1.23
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)-7.43%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%2.44%
EPS Next Y-1.01%
EPS Next 2Y2.56%
EPS Next 3Y2.94%
EPS Next 5Y4.11%
Revenue 1Y (TTM)0.76%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%2.31%
Revenue Next Year1.13%
Revenue Next 2Y1.55%
Revenue Next 3Y1.68%
Revenue Next 5Y1.81%
EBIT growth 1Y-7.84%
EBIT growth 3Y3.72%
EBIT growth 5Y1.48%
EBIT Next Year18.55%
EBIT Next 3Y7.81%
EBIT Next 5Y6.18%
FCF growth 1Y-36.54%
FCF growth 3Y29.73%
FCF growth 5Y4.65%
OCF growth 1Y-19.47%
OCF growth 3Y16.41%
OCF growth 5Y3.94%
REYNOLDS CONSUMER PRODUCTS I / REYN FAQ
What is the fundamental rating for REYN stock?
ChartMill assigns a fundamental rating of 3 / 10 to REYN.
What is the valuation status of REYNOLDS CONSUMER PRODUCTS I (REYN) stock?
ChartMill assigns a valuation rating of 3 / 10 to REYNOLDS CONSUMER PRODUCTS I (REYN). This can be considered as Overvalued.
What is the profitability of REYN stock?
REYNOLDS CONSUMER PRODUCTS I (REYN) has a profitability rating of 4 / 10.
What is the earnings growth outlook for REYNOLDS CONSUMER PRODUCTS I?
The Earnings per Share (EPS) of REYNOLDS CONSUMER PRODUCTS I (REYN) is expected to decline by -1.01% in the next year.
How sustainable is the dividend of REYNOLDS CONSUMER PRODUCTS I (REYN) stock?
The dividend rating of REYNOLDS CONSUMER PRODUCTS I (REYN) is 4 / 10 and the dividend payout ratio is 63.16%.