REYNOLDS CONSUMER PRODUCTS I (REYN) Stock Fundamental Analysis
NASDAQ:REYN - Nasdaq - US76171L1061 - Common Stock - Currency: USD
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
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.
Each year in the past 5 years REYN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 6.92%, REYN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.79%, REYN is in line with its industry, outperforming 41.67% of the companies in the same industry.
With a Return On Invested Capital value of 9.82%, REYN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REYN 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.
In the last couple of years the Profit Margin of REYN has grown nicely.
With a Operating Margin value of 14.76%, REYN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
REYN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.21%, REYN is doing worse than 91.67% of the companies in the same industry.
REYN's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REYN is creating some value.
The number of shares outstanding for REYN remains at a similar level compared to 1 year ago.
REYN has more shares outstanding than it did 5 years ago.
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's Altman-Z score of 2.48 is on the low side compared to the rest of the industry. REYN is outperformed by 83.33% of its industry peers.
REYN has a debt to FCF ratio of 5.18. This is a neutral value as REYN would need 5.18 years to pay back of all of its debts.
The Debt to FCF ratio of REYN (5.18) is worse than 75.00% of its industry peers.
REYN has a Debt/Equity ratio of 0.76. This is a neutral value indicating REYN is somewhat dependend on debt financing.
REYN has a Debt to Equity ratio of 0.76. This is comparable to the rest of the industry: REYN outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.26
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.80 indicates that REYN should not have too much problems paying its short term obligations.
REYN has a Current ratio (1.80) which is comparable to the rest of the industry.
A Quick Ratio of 0.72 indicates that REYN may have some problems paying its short term obligations.
REYN has a Quick ratio of 0.72. This is comparable to the rest of the industry: REYN outperforms 41.67% of its industry peers.
| 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%.
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.
The Revenue has decreased by -0.97% in the past year.
The Revenue has been growing slightly by 4.03% on average over the past years.
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
REYN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.06% yearly.
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.
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
REYN is valuated correctly with a Price/Earnings ratio of 13.29.
83.33% of the companies in the same industry are more expensive than REYN, based on the Price/Earnings ratio.
REYN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.25, REYN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REYN indicates a somewhat cheap valuation: REYN is cheaper than 75.00% of the companies listed in the same industry.
REYN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REYN is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REYN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y0.16%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, REYN is a good candidate for dividend investing.
REYN's Dividend Yield is rather good when compared to the industry average which is at 2.86. REYN pays more dividend than 91.67% of the companies in the same industry.
REYN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 57.31% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.31%
EPS Next 2Y0.16%
EPS Next 3Y1.94%
22.33
+0.35 (+1.59%)
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 Cap4.70B
Analysts74.67
Price Target27.1 (21.36%)
Short Float %5.37%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 | 13.29 | ||
| Fwd PE | 13.25 | ||
| P/S | 1.28 | ||
| P/FCF | 14.86 | ||
| P/OCF | 10.53 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.34 |
EPS(TTM)1.68
EY7.52%
EPS(NY)1.69
Fwd EY7.55%
FCF(TTM)1.5
FCFY6.73%
OCF(TTM)2.12
OCFY9.5%
SpS17.49
BVpS10.09
TBVpS-3.51
PEG (NY)N/A
PEG (5Y)1.55
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
WACC7.81%
ROIC/WACC1.26
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%