REYNOLDS CONSUMER PRODUCTS I (REYN)
US76171L1061 - Common Stock
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 only an average score on both its financial health and profitability. REYN has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years REYN has been profitable.
In the past 5 years REYN always reported a positive cash flow from operatings.
1.2 Ratios
REYN has a Return On Assets (6.79%) which is comparable to the rest of the industry.
REYN's Return On Equity of 16.59% is on the low side compared to the rest of the industry. REYN is outperformed by 75.00% of its industry peers.
REYN's Return On Invested Capital of 9.64% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REYN is significantly below the industry average of 14.24%.
The last Return On Invested Capital (9.64%) for REYN is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 16.59% | ||
| ROIC | 9.64% |
ROA(3y)6.07%
ROA(5y)6.26%
ROE(3y)15.76%
ROE(5y)N/A
ROIC(3y)8.34%
ROIC(5y)9.24%
1.3 Margins
REYN's Profit Margin of 8.89% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
REYN's Profit Margin has improved in the last couple of years.
REYN has a Operating Margin (14.81%) which is in line with its industry peers.
REYN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 26.58%, REYN is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
REYN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.81% | ||
| PM (TTM) | 8.89% | ||
| GM | 26.58% |
OM growth 3Y-10.33%
OM growth 5Y-3.54%
PM growth 3Y-10.66%
PM growth 5Y7.21%
GM growth 3Y-5.61%
GM growth 5Y-1.08%
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.
The number of shares outstanding for REYN has been increased compared to 5 years ago.
Compared to 1 year ago, REYN has an improved debt to assets ratio.
2.2 Solvency
REYN has an Altman-Z score of 2.71. 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 2.71 is on the low side compared to the rest of the industry. REYN is outperformed by 75.00% of its industry peers.
REYN has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as REYN would need 3.37 years to pay back of all of its debts.
REYN has a Debt to FCF ratio (3.37) which is comparable to the rest of the industry.
REYN has a Debt/Equity ratio of 0.92. This is a neutral value indicating REYN is somewhat dependend on debt financing.
REYN has a Debt to Equity ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.22
WACC7.88%
2.3 Liquidity
REYN has a Current Ratio of 2.11. This indicates that REYN is financially healthy and has no problem in meeting its short term obligations.
REYN has a Current ratio of 2.11. This is comparable to the rest of the industry: REYN outperforms 58.33% of its industry peers.
REYN has a Quick Ratio of 1.01. 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 Quick ratio value of 1.01, REYN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.44% over the past year.
Measured over the past years, REYN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.28% on average per year.
REYN shows a decrease in Revenue. In the last year, the revenue decreased by -3.43%.
Measured over the past years, REYN shows a small growth in Revenue. The Revenue has been growing by 3.63% on average per year.
EPS 1Y (TTM)41.44%
EPS 3Y-10.49%
EPS 5Y10.28%
EPS growth Q2Q187.5%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y4.8%
Revenue growth 5Y3.63%
Revenue growth Q2Q-4.69%
3.2 Future
REYN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.62% yearly.
The Revenue is expected to grow by 0.47% on average over the next years.
EPS Next Y16.24%
EPS Next 2Y11.17%
EPS Next 3Y10.83%
EPS Next 5Y9.62%
Revenue Next Year-4.1%
Revenue Next 2Y-1.16%
Revenue Next 3Y-0.18%
Revenue Next 5Y0.47%
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 stable.
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
A Price/Earnings ratio of 18.49 indicates a rather expensive valuation of REYN.
REYN's Price/Earnings ratio is a bit cheaper when compared to the industry. REYN is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of REYN to the average of the S&P500 Index (28.83), we can say REYN is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.54, which indicates a correct valuation of REYN.
83.33% of the companies in the same industry are more expensive than REYN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.47, REYN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.54 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REYN indicates a somewhat cheap valuation: REYN is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.14
PEG (5Y)1.8
EPS Next 2Y11.17%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
REYN's Dividend Yield is a higher than the industry average which is at 2.43.
Compared to an average S&P500 Dividend Yield of 2.34, REYN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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 Years3
5.3 Sustainability
58.18% of the earnings are spent on dividend by REYN. This is a bit on the high side, but may be sustainable.
DP58.18%
EPS Next 2Y11.17%
EPS Next 3Y10.83%
REYNOLDS CONSUMER PRODUCTS I
NASDAQ:REYN (5/16/2024, 7:14:14 PM)
After market: 29.03 0 (0%)29.03
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 16.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.14
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 16.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.81% | ||
| PM (TTM) | 8.89% | ||
| GM | 26.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.44%
EPS 3Y-10.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y4.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y