Reynolds Consumer Products Inc.
Reynolds Consumer Products Inc. Fundamental Analysis
Reynolds Consumer Products Inc. (REYN) shows weak financial fundamentals with a PE ratio of 16.97, profit margin of 8.09%, and ROE of 13.83%. The company generates $3.7B in annual revenue with weak year-over-year growth of -1.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze REYN's fundamental strength across five key dimensions:
Efficiency Score
WeakREYN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentREYN trades at attractive valuation levels.
Growth Score
ModerateREYN shows steady but slowing expansion.
Financial Health Score
ExcellentREYN maintains a strong and stable balance sheet.
Profitability Score
WeakREYN struggles to sustain strong margins.
Key Financial Metrics
Is REYN Expensive or Cheap?
P/E Ratio
REYN trades at 16.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, REYN's PEG of -12.39 indicates potential undervaluation.
Price to Book
The market values Reynolds Consumer Products Inc. at 2.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.68 times EBITDA. This is generally considered low.
How Well Does REYN Make Money?
Net Profit Margin
For every $100 in sales, Reynolds Consumer Products Inc. keeps $8.09 as profit after all expenses.
Operating Margin
Core operations generate 13.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.83 in profit for every $100 of shareholder equity.
ROA
Reynolds Consumer Products Inc. generates $6.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reynolds Consumer Products Inc. produces operating cash flow of $477.10M, showing steady but balanced cash generation.
Free Cash Flow
Reynolds Consumer Products Inc. produces free cash flow of $316.07M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.50 in free cash annually.
FCF Yield
REYN converts 6.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How REYN Stacks Against Its Sector Peers
| Metric | REYN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.97 | 25.25 | Better (Cheaper) |
| ROE | 13.83% | 1170.00% | Weak |
| Net Margin | 8.09% | 742.00% | Weak |
| Debt/Equity | 0.78 | 0.77 | Neutral |
| Current Ratio | 1.93 | 9.19 | Neutral |
| ROA | 6.10% | -6467.00% (disorted) | Weak |
REYN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reynolds Consumer Products Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.64%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
56.15%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
21.11%
Industry Style: Cyclical, Growth, Discretionary
High Growth