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Reynolds Consumer Products

Market Cap

US$6.4b

Last Updated

2021/05/06 23:02 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


Snowflake Analysis

Solid track record and good value.


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 +/- 3% a week.

Volatility Over Time: REYN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.7%

REYN

1.9%

US Household Products

-1.7%

US Market


1 Year Return

-8.3%

REYN

18.7%

US Household Products

51.8%

US Market

Return vs Industry: REYN underperformed the US Household Products industry which returned 16.7% over the past year.

Return vs Market: REYN underperformed the US Market which returned 52.8% over the past year.


Shareholder returns

REYNIndustryMarket
7 Day2.7%1.9%-1.7%
30 Day0.7%-1.3%1.5%
90 Day1.7%3.8%3.1%
1 Year-6.3%-8.3%21.4%18.7%54.4%51.8%
3 Yearn/a96.0%81.3%63.0%52.8%
5 Yearn/a87.2%63.2%127.2%101.9%

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

Valuation

Is Reynolds Consumer Products undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REYN ($30.56) is trading below our estimate of fair value ($63.4)

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 (15.6x) compared to the US Household Products industry average (23.7x).

PE vs Market: REYN is good value based on its PE Ratio (15.6x) compared to the US market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: REYN is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: REYN's PB Ratio (3.9x) is in line with the US Household Products industry average.


Future Growth

How is Reynolds Consumer Products forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REYN's forecast earnings growth (3.9% per year) is above the savings rate (2%).

Earnings vs Market: REYN's earnings (3.9% per year) are forecast to grow slower than the US market (15.7% per year).

High Growth Earnings: REYN's earnings are forecast to grow, but not significantly.

Revenue vs Market: REYN's revenue (2.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: REYN's revenue (2.1% 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 (22.4%)


Past Performance

How has Reynolds Consumer Products performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REYN has high quality earnings.

Growing Profit Margin: REYN's current net profit margins (12.5%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: REYN's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: REYN's earnings growth over the past year (75.6%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: REYN earnings growth over the past year (75.6%) exceeded the Household Products industry 45.9%.


Return on Equity

High ROE: Whilst REYN's Return on Equity (25.02%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Reynolds Consumer Products's financial position?


Financial Position Analysis

Short Term Liabilities: REYN's short term assets ($971.0M) exceed its short term liabilities ($424.0M).

Long Term Liabilities: REYN's short term assets ($971.0M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: REYN's debt to equity ratio (128.7%) 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 well covered by operating cash flow (27.6%).

Interest Coverage: REYN's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Dividend

What is Reynolds Consumer Products's current dividend yield, its reliability and sustainability?

3.01%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 07 2021Ex Dividend DateMay 12 2021Dividend Pay DateMay 27 202115 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: REYN's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: REYN's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (3.42%).


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 (34.2%), 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 (46.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Lance Mitchell (60 yo)

10.33yrs

Tenure

US$11,410,221

Compensation

Mr. Lance Mitchell has been the Chief Executive Officer and President of Reynolds Consumer Products Inc. since 2011 and has been its Director since October 2019. From 2006 to 2011, Mr. Mitchell served as t...


CEO Compensation Analysis

Compensation vs Market: Lance's total compensation ($USD11.41M) is above average for companies of similar size in the US market ($USD6.47M).

Compensation vs Earnings: Lance's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: REYN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: REYN's board of directors are not considered experienced ( 1.5 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$6.446b
  • Shares outstanding: 209.76m
  • Website: https://www.reynoldsconsumerproducts.com

Number of Employees


Location

  • Reynolds Consumer Products Inc.
  • 1900 West Field Court
  • Lake Forest
  • Illinois
  • 60045
  • United States

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 23:02
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.