REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
USA - NASDAQ:REYN - US76171L1061 - Common Stock
24.83 USD
+0.29 (+1.18%)
24.83 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
REYN had positive earnings in the past year.
In the past year REYN had a positive cash flow from operations.
In the past 5 years REYN has always been profitable.
Each year in the past 5 years REYN had a positive operating cash flow.
1.2 Ratios
REYN has a Return On Assets (6.40%) which is comparable to the rest of the industry.
REYN has a Return On Equity (14.48%) which is comparable to the rest of the industry.
The Return On Invested Capital of REYN (9.57%) is comparable to the rest of the industry.
REYN had an Average Return On Invested Capital over the past 3 years of 8.77%. This is significantly below the industry average of 15.56%.
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
REYN's Profit Margin of 8.44% is on the low side compared to the rest of the industry. REYN is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of REYN has grown nicely.
REYN has a Operating Margin (14.46%) which is comparable to the rest of the industry.
REYN's Operating Margin has declined in the last couple of years.
REYN has a Gross Margin of 25.34%. This is amonst the worse of the industry: REYN underperforms 91.67% of its industry peers.
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
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
The debt/assets ratio for REYN has been reduced compared to a year ago.
2.2 Solvency
REYN has an Altman-Z score of 2.58. 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 has a Altman-Z score (2.58) which is comparable to the rest of the industry.
REYN has a debt to FCF ratio of 5.41. This is a neutral value as REYN would need 5.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.41, REYN is doing worse than 75.00% of the companies in the same industry.
REYN has a Debt/Equity ratio of 0.75. This is a neutral value indicating REYN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.25
WACC7.66%
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.
With a Current ratio value of 1.85, REYN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that REYN may have some problems paying its short term obligations.
REYN's Quick ratio of 0.75 is in line compared 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
REYN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.85%.
The Earnings Per Share has been growing by 8.55% on average over the past years. This is quite good.
REYN shows a decrease in Revenue. In the last year, the revenue decreased by -0.49%.
REYN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.03% yearly.
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
Based on estimates for the next years, REYN will show a small growth in Earnings Per Share. The EPS will grow by 3.17% on average per year.
Based on estimates for the next years, REYN will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
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.
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
With a Price/Earnings ratio of 15.42, REYN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of REYN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of REYN to the average of the S&P500 Index (27.76), we can say REYN is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.78, which indicates a correct valuation of REYN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REYN indicates a somewhat cheap valuation: REYN is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of REYN to the average of the S&P500 Index (23.21), we can say REYN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REYN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, REYN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.29 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y0%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 3.74%.
REYN's Dividend Yield is a higher than the industry average which is at 3.01.
Compared to an average S&P500 Dividend Yield of 2.44, REYN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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%
24.83
+0.29 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners28.46%
Inst Owner Change0.02%
Ins Owners0.27%
Ins Owner Change0.01%
Market Cap5.22B
Analysts75.71
Price Target26.96 (8.58%)
Short Float %8.43%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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)-0.02%
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 | 15.42 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.42 | ||
| P/FCF | 17.29 | ||
| P/OCF | 11.53 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)1.61
EY6.48%
EPS(NY)1.68
Fwd EY6.77%
FCF(TTM)1.44
FCFY5.78%
OCF(TTM)2.15
OCFY8.67%
SpS17.52
BVpS10.21
TBVpS-3.35
PEG (NY)N/A
PEG (5Y)1.8
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 | 2.58 |
F-Score4
WACC7.66%
ROIC/WACC1.25
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%