Reynolds Consumer Products
Market Cap
US$6.5b
Last Updated
2020/11/26 23:09 UTC
Data Sources
Company Financials +
Executive Summary
Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
Share Price & News
How has Reynolds Consumer Products's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: REYN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: REYN's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
3.4%
REYN
-0.6%
US Household Products
2.1%
US Market
1 Year Return
n/a
REYN
17.1%
US Household Products
19.8%
US Market
Return vs Industry: Insufficient data to determine how REYN performed against the US Household Products industry.
Return vs Market: Insufficient data to determine how REYN performed against the US Market.
Shareholder returns
| REYN | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | -0.6% | 2.1% |
| 30 Day | 3.6% | -1.4% | 8.1% |
| 90 Day | -7.4% | 0.06% | 6.0% |
| 1 Year | n/a | 19.9%17.1% | 22.5%19.8% |
| 3 Year | n/a | 58.3%46.0% | 46.5%36.8% |
| 5 Year | n/a | 95.8%70.8% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is Reynolds Consumer Products's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Reynolds Consumer Products Inc. (NASDAQ:REYN) Looks Like A Good Stock, And It's Going Ex-Dividend Soon1 month ago | Simply Wall St
Reynolds Consumer Products Inc. (NASDAQ:REYN) Shares Could Be 40% Below Their Intrinsic Value Estimate1 month ago | Simply Wall St
Reynolds Consumer Products (NASDAQ:REYN) Seems To Use Debt Quite SensiblyValuation
Is Reynolds Consumer Products undervalued compared to its fair value and its price relative to the market?
38.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: REYN ($30.76) is trading below our estimate of fair value ($50.26)
Significantly Below Fair Value: REYN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: REYN is good value based on its PE Ratio (17.2x) compared to the US Household Products industry average (23.8x).
PE vs Market: REYN is good value based on its PE Ratio (17.2x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: REYN is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: REYN is good value based on its PB Ratio (4.2x) compared to the US Household Products industry average (5.4x).
Next Steps
Future Growth
How is Reynolds Consumer Products forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
11.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REYN's forecast earnings growth (11.1% per year) is above the savings rate (2.2%).
Earnings vs Market: REYN's earnings (11.1% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: REYN's earnings are forecast to grow, but not significantly.
Revenue vs Market: REYN's revenue (0.7% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: REYN's revenue (0.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: REYN's Return on Equity is forecast to be high in 3 years time (23.5%)
Next Steps
Past Performance
How has Reynolds Consumer Products performed over the past 5 years?
17.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REYN has high quality earnings.
Growing Profit Margin: REYN's current net profit margins (10.6%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: REYN's earnings have grown by 17.6% per year over the past 5 years.
Accelerating Growth: REYN's earnings growth over the past year (55.7%) exceeds its 5-year average (17.6% per year).
Earnings vs Industry: REYN earnings growth over the past year (55.7%) exceeded the Household Products industry 41.6%.
Return on Equity
High ROE: Whilst REYN's Return on Equity (21.99%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Reynolds Consumer Products's financial position?
Financial Position Analysis
Short Term Liabilities: REYN's short term assets ($1.1B) exceed its short term liabilities ($401.0M).
Long Term Liabilities: REYN's short term assets ($1.1B) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: REYN's debt to equity ratio (150.2%) is considered high.
Reducing Debt: Insufficient data to determine if REYN's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: REYN's debt is not well covered by operating cash flow (17.3%).
Interest Coverage: REYN's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Reynolds Consumer Products's current dividend yield, its reliability and sustainability?
2.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REYN's dividend (2.86%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: REYN's dividend (2.86%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether REYN's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if REYN's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33%), REYN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: REYN's dividends in 3 years are forecast to be well covered by earnings (48% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Lance Mitchell (60 yo)
9.83yrs
Tenure
US$6,900,288
Compensation
Mr. Lance Mitchell has been Chief Executive Officer of Reynolds Consumer Products at Pactiv Evergreen Inc. (formerly known as Reynolds Group Holdings Limited) since April 2011. Mr. Mitchell serves as Chief...
CEO Compensation Analysis
Compensation vs Market: Lance's total compensation ($USD6.90M) is about average for companies of similar size in the US market ($USD6.86M).
Compensation vs Earnings: Lance's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 9.83yrs | US$6.90m | no data | |
| Chief Financial Officer | 4.83yrs | US$2.99m | 0.0012% $ 80.0k | |
| President of Sales & Chief Customer Officer | 0.83yr | US$1.50m | no data | |
| President of Hefty Tableware | 1.83yrs | US$1.23m | no data | |
| President of Reynolds Cooking & Baking | 2.83yrs | US$1.68m | no data | |
| VP, Corporate Controller & Principal Accounting Officer | 0.58yr | no data | 0.0043% $ 276.7k | |
| Vice President of Investor Relations | 0.58yr | no data | no data | |
| General Counsel & Secretary | no data | no data | no data | |
| President of Hefty Waste & Storage | 1.83yrs | no data | no data | |
| President of Presto Products | 1.83yrs | no data | no data | |
| Senior Director Finance | no data | no data | no data |
1.8yrs
Average Tenure
50yo
Average Age
Experienced Management: REYN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 9.83yrs | US$6.90m | no data | |
| Director | 0.17yr | no data | no data | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Chairman of the Board | 0.83yr | no data | 0.0072% $ 461.2k | |
| Director | 1.08yrs | no data | no data | |
| Director | 1.08yrs | no data | no data | |
| Director | 1.08yrs | no data | 0.0048% $ 307.7k |
1.1yrs
Average Tenure
60yo
Average Age
Experienced Board: REYN's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: REYN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: REYN only recently listed within the past 12 months.
Top Shareholders
Company Information
Reynolds Consumer Products Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Reynolds Consumer Products Inc.
- Ticker: REYN
- Exchange: NasdaqGS
- Founded: 1947
- Industry: Household Products
- Sector: Household
- Market Cap: US$6.450b
- Shares outstanding: 209.70m
- Website: https://www.reynoldsconsumerproducts.com
Number of Employees
Location
- Reynolds Consumer Products Inc.
- 1900 W. Field Court
- Lake Forest
- Illinois
- 60045
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| REYN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 2020 |
| 3ZT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 2020 |
Biography
Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reyn...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 23:09 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.