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
Undervalued with solid track record.
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 +/- 2% a week.
Volatility Over Time: REYN's weekly volatility (2%) has been stable over the past year.
7 Day Return
US Household Products
1 Year Return
US Household Products
Return vs Industry: REYN underperformed the US Household Products industry which returned 2.3% over the past year.
Return vs Market: REYN underperformed the US Market which returned 33% over the past year.
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
1 week ago | Simply Wall StSlowing Rates Of Return At Reynolds Consumer Products (NASDAQ:REYN) Leave Little Room For Excitement
1 month ago | Simply Wall StHere's Why We're Wary Of Buying Reynolds Consumer Products' (NASDAQ:REYN) For Its Upcoming Dividend
1 month ago | Simply Wall StHere's Why Reynolds Consumer Products (NASDAQ:REYN) Can Manage Its Debt Responsibly
Is Reynolds Consumer Products undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: REYN ($27.68) is trading below our estimate of fair value ($63.71)
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 (15.3x) compared to the US Household Products industry average (22.1x).
PE vs Market: REYN is good value based on its PE Ratio (15.3x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: REYN is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: REYN is good value based on its PB Ratio (3.5x) compared to the US Household Products industry average (4.8x).
How is Reynolds Consumer Products forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REYN's forecast earnings growth (6% per year) is above the savings rate (2%).
Earnings vs Market: REYN's earnings (6% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: REYN's earnings are forecast to grow, but not significantly.
Revenue vs Market: REYN's revenue (2.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: REYN's revenue (2.9% 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 (20.8%)
How has Reynolds Consumer Products performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REYN has high quality earnings.
Growing Profit Margin: REYN's current net profit margins (11.3%) are higher than last year (9.3%).
Past Earnings Growth Analysis
Earnings Trend: REYN's earnings have grown significantly by 20.5% per year over the past 5 years.
Accelerating Growth: REYN's earnings growth over the past year (30.2%) exceeds its 5-year average (20.5% per year).
Earnings vs Industry: REYN earnings growth over the past year (30.2%) exceeded the Household Products industry 11.7%.
Return on Equity
High ROE: Whilst REYN's Return on Equity (22.61%) is high, this metric is skewed due to their high level of debt.
How is Reynolds Consumer Products's financial position?
Financial Position Analysis
Short Term Liabilities: REYN's short term assets ($1.0B) exceed its short term liabilities ($455.0M).
Long Term Liabilities: REYN's short term assets ($1.0B) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: REYN's debt to equity ratio (126.6%) is considered high.
Reducing Debt: Insufficient data to determine if REYN's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: REYN's debt is not well covered by operating cash flow (15.7%).
Interest Coverage: REYN's interest payments on its debt are well covered by EBIT (11.4x coverage).
What is Reynolds Consumer Products's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REYN's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: REYN's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (3.65%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, REYN has been paying a dividend for less than 10 years.
Growing Dividend: REYN's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.4%), REYN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: REYN's dividends in 3 years are forecast to be well covered by earnings (48.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lance Mitchell (61 yo)
Mr. Lance Mitchell has been the Chief Executive Officer and President of Reynolds Consumer Products Inc. since 2011 and has been its Director since October 2019. From 2006 to 2011, Mr. Mitchell served as t...
CEO Compensation Analysis
Compensation vs Market: Lance's total compensation ($USD11.41M) is above average for companies of similar size in the US market ($USD6.43M).
Compensation vs Earnings: Lance's compensation has increased by more than 20% in the past year.
Experienced Management: REYN's management team is considered experienced (2.7 years average tenure).
Experienced Board: REYN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Reynolds Consumer Products Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Reynolds Consumer Products Inc.
- Ticker: REYN
- Exchange: NasdaqGS
- Founded: 1947
- Industry: Household Products
- Sector: Household
- Market Cap: US$5.831b
- Shares outstanding: 209.76m
- Website: https://www.reynoldsconsumerproducts.com
Number of Employees
- Reynolds Consumer Products Inc.
- 1900 West Field Court
- Lake Forest
- United States
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
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|Company Analysis||2021/09/20 22:35|
|End of Day Share Price||2021/09/20 00:00|
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.