24.25 USD
-0.03 (-0.12%)
24.25 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to REYN. 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
- In the past year REYN was profitable.
- In the past year REYN had a positive cash flow from operations.
- In the past 5 years REYN has always been profitable.
- REYN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of REYN (6.21%) is comparable to the rest of the industry.
- REYN has a Return On Equity of 13.94%. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
- REYN has a Return On Invested Capital of 9.38%. This is in the lower half of the industry: REYN underperforms 66.67% of its industry peers.
- REYN had an Average Return On Invested Capital over the past 3 years of 8.77%. This is significantly below the industry average of 14.86%.
- The 3 year average ROIC (8.77%) for REYN is below the current ROIC(9.38%), indicating increased profibility in the last year.
| 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
- REYN has a Profit Margin (8.20%) which is comparable to the rest of the industry.
- REYN's Profit Margin has improved in the last couple of years.
- REYN has a Operating Margin of 14.27%. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
- REYN's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 25.03%, REYN is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
- 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
- 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
- The debt/assets ratio for REYN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.58 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- REYN's Altman-Z score of 2.58 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 debt to FCF ratio of 6.34. This is a slightly negative value and a sign of low solvency as REYN would need 6.34 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 6.34, REYN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- REYN has a Debt/Equity ratio of 0.74. This is a neutral value indicating REYN is somewhat dependend on debt financing.
- The Debt to Equity ratio of REYN (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.22
WACC7.7%
2.3 Liquidity
- REYN has a Current Ratio of 1.94. This is a normal value and indicates that REYN is financially healthy and should not expect problems in meeting its short term obligations.
- REYN has a Current ratio (1.94) which is comparable to the rest of the industry.
- A Quick Ratio of 0.80 indicates that REYN may have some problems paying its short term obligations.
- REYN has a Quick ratio (0.80) which is in line with 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 2Y2.82%
EPS Next 3Y3.13%
EPS Next 5Y4.11%
Revenue Next Year1.24%
Revenue Next 2Y1.59%
Revenue Next 3Y1.71%
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
- REYN is valuated correctly with a Price/Earnings ratio of 14.97.
- REYN's Price/Earnings is on the same level as the industry average.
- REYN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 13.65, the valuation of REYN can be described as correct.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. REYN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.65 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as REYN.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of REYN indicates a somewhat cheap valuation: REYN is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.85 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y2.82%
EPS Next 3Y3.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, REYN has a reasonable but not impressive dividend return.
- REYN's Dividend Yield is a higher than the industry average which is at 2.67.
- REYN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 63.16% of its income as dividend. This is not a sustainable payout ratio.
DP63.16%
EPS Next 2Y2.82%
EPS Next 3Y3.13%
REYNOLDS CONSUMER PRODUCTS I / REYN FAQ
What is the fundamental rating for REYN stock?
ChartMill assigns a fundamental rating of 3 / 10 to REYN.
Can you provide the valuation status for REYNOLDS CONSUMER PRODUCTS I?
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 valuation of REYNOLDS CONSUMER PRODUCTS I based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REYNOLDS CONSUMER PRODUCTS I (REYN) is 14.97 and the Price/Book (PB) ratio is 2.34.
What is the expected EPS growth for REYNOLDS CONSUMER PRODUCTS I (REYN) stock?
The Earnings per Share (EPS) of REYNOLDS CONSUMER PRODUCTS I (REYN) is expected to decline by -1.01% in the next year.