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. While REYN is still in line with the averages on profitability rating, there are concerns on its financial health. REYN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
REYN has a Return On Assets (6.92%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 15.79%, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
The Return On Invested Capital of REYN (9.82%) 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 15.82%.
The last Return On Invested Capital (9.82%) for REYN is above the 3 year average (8.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 15.79% | ||
| ROIC | 9.82% |
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 9.11%, REYN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Profit Margin of REYN has grown nicely.
Looking at the Operating Margin, with a value of 14.76%, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Operating Margin of REYN has declined.
REYN's Gross Margin of 26.21% is on the low side compared to the rest of the industry. REYN is outperformed by 91.67% of its industry peers.
REYN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.76% | ||
| PM (TTM) | 9.11% | ||
| GM | 26.21% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REYN is still creating some value.
The number of shares outstanding for REYN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, REYN has more shares outstanding
REYN has a better debt/assets ratio than last year.
2.2 Solvency
REYN has an Altman-Z score of 2.46. 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's Altman-Z score of 2.46 is on the low side compared to the rest of the industry. REYN is outperformed by 83.33% of its industry peers.
REYN has a debt to FCF ratio of 5.18. This is a neutral value as REYN would need 5.18 years to pay back of all of its debts.
The Debt to FCF ratio of REYN (5.18) is worse than 75.00% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that REYN is somewhat dependend on debt financing.
REYN's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. REYN outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.28
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.80 indicates that REYN should not have too much problems paying its short term obligations.
REYN has a Current ratio (1.80) which is in line with its industry peers.
REYN has a Quick Ratio of 1.80. 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 (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
REYN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.01%.
REYN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.55% yearly.
REYN shows a decrease in Revenue. In the last year, the revenue decreased by -0.97%.
Measured over the past years, REYN shows a small growth in Revenue. The Revenue has been growing by 4.03% on average per year.
EPS 1Y (TTM)7.01%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.97%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%-3.84%
3.2 Future
REYN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.11% yearly.
The Revenue is expected to grow by 1.22% on average over the next years.
EPS Next Y-4.15%
EPS Next 2Y0.16%
EPS Next 3Y1.94%
EPS Next 5Y3.11%
Revenue Next Year-0.7%
Revenue Next 2Y0.51%
Revenue Next 3Y1.06%
Revenue Next 5Y1.22%
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 13.01 indicates a correct valuation of REYN.
Compared to the rest of the industry, the Price/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/Earnings ratio of REYN to the average of the S&P500 Index (27.30), we can say REYN is valued rather cheaply.
The Price/Forward Earnings ratio is 12.97, 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 75.00% of the companies are valued more expensively.
REYN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 12.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REYN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
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 | 14.55 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y0.16%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, REYN is a good candidate for dividend investing.
REYN's Dividend Yield is rather good when compared to the industry average which is at 2.98. REYN pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, REYN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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 57.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.31%
EPS Next 2Y0.16%
EPS Next 3Y1.94%
21.86
-0.05 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners27.62%
Inst Owner Change0.02%
Ins Owners0.27%
Ins Owner Change0.06%
Market Cap4.60B
Analysts75.71
Price Target27.1 (23.97%)
Short Float %6.35%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend0.91
Dividend Growth(5Y)N/A
DP57.31%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.94%
Min EPS beat(2)-2.43%
Max EPS beat(2)-1.45%
EPS beat(4)1
Avg EPS beat(4)-0.99%
Min EPS beat(4)-3.12%
Max EPS beat(4)3.02%
EPS beat(8)4
Avg EPS beat(8)1.17%
EPS beat(12)5
Avg EPS beat(12)-0.36%
EPS beat(16)8
Avg EPS beat(16)0.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.64%
Min Revenue beat(2)-4.28%
Max Revenue beat(2)3%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-4.28%
Max Revenue beat(4)3%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)4
Avg Revenue beat(12)-1.31%
Revenue beat(16)5
Avg Revenue beat(16)-1.52%
PT rev (1m)0%
PT rev (3m)-10.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 12.97 | ||
| P/S | 1.25 | ||
| P/FCF | 14.55 | ||
| P/OCF | 10.31 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)1.68
EY7.69%
EPS(NY)1.69
Fwd EY7.71%
FCF(TTM)1.5
FCFY6.87%
OCF(TTM)2.12
OCFY9.7%
SpS17.49
BVpS10.09
TBVpS-3.51
PEG (NY)N/A
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 15.79% | ||
| ROCE | 12.76% | ||
| ROIC | 9.82% | ||
| ROICexc | 9.95% | ||
| ROICexgc | 31.25% | ||
| OM | 14.76% | ||
| PM (TTM) | 9.11% | ||
| GM | 26.21% | ||
| FCFM | 8.59% |
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-Score5
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 100.78% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 5.78 | ||
| Cash Conversion | 66.37% | ||
| Profit Quality | 94.33% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.46 |
F-Score5
WACC7.67%
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)7.01%
EPS 3Y1.85%
EPS 5Y8.55%
EPS Q2Q%0%
EPS Next Y-4.15%
EPS Next 2Y0.16%
EPS Next 3Y1.94%
EPS Next 5Y3.11%
Revenue 1Y (TTM)-0.97%
Revenue growth 3Y1.29%
Revenue growth 5Y4.03%
Sales Q2Q%-3.84%
Revenue Next Year-0.7%
Revenue Next 2Y0.51%
Revenue Next 3Y1.06%
Revenue Next 5Y1.22%
EBIT growth 1Y-1.27%
EBIT growth 3Y3.72%
EBIT growth 5Y1.48%
EBIT Next Year18.56%
EBIT Next 3Y7.8%
EBIT Next 5Y5.61%
FCF growth 1Y90.36%
FCF growth 3Y29.73%
FCF growth 5Y4.65%
OCF growth 1Y54.86%
OCF growth 3Y16.41%
OCF growth 5Y3.94%