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.
In the past year REYN had a positive cash flow from operations.
Each year in the past 5 years REYN has 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 of 6.92%. This is comparable to the rest of the industry: REYN outperforms 50.00% of its industry peers.
REYN has a Return On Equity of 15.79%. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
REYN has a Return On Invested Capital (9.82%) which 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 15.79%.
The 3 year average ROIC (8.77%) for REYN is below the current ROIC(9.82%), indicating increased profibility in the last year.
| 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
REYN has a Profit Margin (9.11%) which is in line with its industry peers.
REYN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 14.76%, REYN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Operating Margin of REYN has declined.
With a Gross Margin value of 26.21%, 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 | 14.76% | ||
| 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
REYN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, REYN has about the same amount of shares outstanding.
Compared to 5 years ago, REYN has more shares outstanding
Compared to 1 year ago, REYN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.48 indicates that REYN is not a great score, but indicates only limited risk for bankruptcy at the moment.
REYN has a worse Altman-Z score (2.48) than 83.33% of its industry peers.
The Debt to FCF ratio of REYN is 5.18, which is a neutral value as it means it would take REYN, 5.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.18, REYN is doing worse than 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that REYN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, REYN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.27
WACC7.72%
2.3 Liquidity
REYN has a Current Ratio of 1.80. 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 of 1.80. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
A Quick Ratio of 0.72 indicates that REYN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
| 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.
Looking at the last year, REYN shows a decrease in Revenue. The Revenue has decreased by -0.97% in the last year.
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
Based on estimates for the next years, REYN will show a small growth in Earnings Per Share. The EPS will grow by 4.06% on average per year.
The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y-4.15%
EPS Next 2Y0.16%
EPS Next 3Y1.94%
EPS Next 5Y4.06%
Revenue Next Year-0.7%
Revenue Next 2Y0.51%
Revenue Next 3Y1.06%
Revenue Next 5Y1.77%
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.
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 13.14, REYN is valued correctly.
Based on the Price/Earnings ratio, REYN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, REYN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.10, REYN is valued correctly.
REYN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REYN is cheaper than 75.00% of the companies in the same industry.
REYN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
REYN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REYN is cheaper than 66.67% of the companies in the same industry.
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 | 14.7 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y0.16%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 4.13%, which is a nice return.
Compared to an average industry Dividend Yield of 2.86, REYN pays a better dividend. On top of this REYN pays more dividend than 91.67% of the companies listed in the same industry.
REYN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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
57.31% of the earnings are spent on dividend by REYN. This is a bit on the high side, but may be sustainable.
DP57.31%
EPS Next 2Y0.16%
EPS Next 3Y1.94%
22.08
-0.21 (-0.94%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners27.51%
Inst Owner Change0.13%
Ins Owners0.25%
Ins Owner Change0.06%
Market Cap4.64B
Analysts74.67
Price Target27.1 (22.74%)
Short Float %5.37%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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)-10.31%
PT rev (3m)-12.16%
EPS NQ rev (1m)-9.3%
EPS NQ rev (3m)-10.91%
EPS NY rev (1m)-3.77%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)-2.25%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 13.1 | ||
| P/S | 1.26 | ||
| P/FCF | 14.7 | ||
| P/OCF | 10.41 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.33 |
EPS(TTM)1.68
EY7.61%
EPS(NY)1.69
Fwd EY7.63%
FCF(TTM)1.5
FCFY6.8%
OCF(TTM)2.12
OCFY9.6%
SpS17.49
BVpS10.09
TBVpS-3.51
PEG (NY)N/A
PEG (5Y)1.54
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 | 2.48 |
F-Score5
WACC7.72%
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)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 5Y4.06%
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 5Y1.77%
EBIT growth 1Y-1.27%
EBIT growth 3Y3.72%
EBIT growth 5Y1.48%
EBIT Next Year18.56%
EBIT Next 3Y7.8%
EBIT Next 5Y7.11%
FCF growth 1Y90.36%
FCF growth 3Y29.73%
FCF growth 5Y4.65%
OCF growth 1Y54.86%
OCF growth 3Y16.41%
OCF growth 5Y3.94%