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. 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
In the past year REYN was profitable.
REYN had a positive operating cash flow in the past year.
REYN had positive earnings in each of the past 5 years.
REYN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REYN's Return On Assets of 6.92% is in line compared to the rest of the industry. REYN outperforms 50.00% of its industry peers.
With a Return On Equity value of 15.79%, REYN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
REYN's Return On Invested Capital of 9.82% is in line compared to the rest of the industry. REYN outperforms 41.67% of its industry peers.
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 of 9.11%. This is comparable 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.
The Operating Margin of REYN (14.76%) is comparable to the rest of the industry.
REYN's Operating Margin has declined in the last couple of years.
REYN has a worse Gross Margin (26.21%) than 91.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REYN is 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
REYN has an Altman-Z score of 2.48. 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.
Looking at the Altman-Z score, with a value of 2.48, REYN is doing worse than 83.33% of the companies in the same industry.
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.
REYN has a worse Debt to FCF ratio (5.18) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that REYN is somewhat dependend on debt financing.
REYN has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.27
WACC7.74%
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 (1.80) which is comparable to the rest of the industry.
REYN has a Quick Ratio of 1.80. This is a bad value and indicates that REYN is not financially healthy enough and could expect problems in meeting 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%.
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.
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
The Earnings Per Share is expected to grow by 4.06% on average over the next years.
REYN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
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
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
A Price/Earnings ratio of 13.13 indicates a correct valuation of REYN.
Based on the Price/Earnings ratio, REYN is valued cheaper than 83.33% of the companies in the same industry.
REYN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.17.
Based on the Price/Forward Earnings ratio of 13.08, the valuation of REYN can be described as correct.
Based on the Price/Forward Earnings ratio, REYN is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. REYN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REYN indicates a somewhat cheap valuation: REYN is cheaper than 66.67% of the companies listed 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 | 14.68 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y0.16%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
REYN has a Yearly Dividend Yield of 4.08%, which is a nice return.
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
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%
22.05
-0.28 (-1.25%)
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 (22.9%)
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 | 13.13 | ||
| Fwd PE | 13.08 | ||
| P/S | 1.26 | ||
| P/FCF | 14.68 | ||
| P/OCF | 10.4 | ||
| P/B | 2.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.34 |
EPS(TTM)1.68
EY7.62%
EPS(NY)1.69
Fwd EY7.64%
FCF(TTM)1.5
FCFY6.81%
OCF(TTM)2.12
OCFY9.62%
SpS17.49
BVpS10.09
TBVpS-3.51
PEG (NY)N/A
PEG (5Y)1.53
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
WACC7.74%
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%