REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
USA - NASDAQ:REYN - US76171L1061 - Common Stock
23.03 USD
-0.3 (-1.29%)
23.03 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. 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 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.
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
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 in line with its industry peers.
REYN has a Return On Invested Capital (9.57%) which is in line with 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 15.56%.
The 3 year average ROIC (8.77%) for REYN is below the current ROIC(9.57%), indicating increased profibility in the last year.
| 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 has a worse Profit Margin (8.44%) than 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 in line with its industry peers.
REYN's Operating Margin has declined in the last couple of years.
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.
In the last couple of years the Gross Margin of REYN has declined.
| 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
REYN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of REYN (2.51) is worse than 75.00% of its industry peers.
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.
REYN's Debt to FCF ratio of 5.41 is on the low side compared to the rest of the industry. REYN is outperformed by 75.00% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that REYN is somewhat dependend on debt financing.
REYN has a Debt to Equity ratio (0.75) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.27
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.85 indicates that REYN should not have too much problems paying its short term obligations.
REYN has a Current ratio (1.85) which is in line with its industry peers.
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 (0.75) which is comparable to the rest of the industry.
| 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.
REYN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.55% yearly.
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
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.
The Revenue is expected to grow by 1.44% on average over the next years.
EPS Next Y-4.17%
EPS Next 2Y0.17%
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
With a Price/Earnings ratio of 14.30, REYN is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as REYN.
When comparing the Price/Earnings ratio of REYN to the average of the S&P500 Index (27.30), we can say REYN is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.66 indicates a correct valuation of REYN.
66.67% of the companies in the same industry are more expensive than REYN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. REYN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.66 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than REYN, based on the Enterprise Value to EBITDA ratio.
REYN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REYN is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.67
EPS Next 2Y0.17%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 3.94%.
REYN's Dividend Yield is rather good when compared to the industry average which is at 2.86. REYN pays more dividend than 83.33% of the companies in the same industry.
REYN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 2Y0.17%
EPS Next 3Y1.68%
23.03
-0.3 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners23.51%
Inst Owner Change1.36%
Ins Owners0.27%
Ins Owner Change0.01%
Market Cap4.84B
Analysts75.71
Price Target26.96 (17.06%)
Short Float %9.83%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)1.09%
PT rev (3m)-0.54%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-3.53%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.66 | ||
| P/S | 1.31 | ||
| P/FCF | 16.04 | ||
| P/OCF | 10.69 | ||
| P/B | 2.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.67 |
EPS(TTM)1.61
EY6.99%
EPS(NY)1.69
Fwd EY7.32%
FCF(TTM)1.44
FCFY6.23%
OCF(TTM)2.15
OCFY9.35%
SpS17.52
BVpS10.21
TBVpS-3.35
PEG (NY)N/A
PEG (5Y)1.67
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 | 2.51 |
F-Score4
WACC7.51%
ROIC/WACC1.27
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 2Y0.17%
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 Year18.7%
EBIT Next 3Y7.85%
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%