Reynolds Consumer Products (REYN) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: 3.87%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.17
• Revenue Growth: -0.49%
• EPS Growth: -13.92%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Packaging & Containers
• EPS (TTM): 0.39
• Shares Outstanding: 210,325,070
• 10 Day Avg. Volume: 972,241
• 30 Day Avg. Volume: 1,085,141
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 6.62
• Enterprise Value/Ebitda: 9.38
• 1Y Price Target: $25.33
• Price Target Upside: 6.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $25.00 ▲(5.09% Upside)

Reynolds Consumer Products scores well due to its stable financial performance, attractive valuation, and positive technical indicators. The company's strategic initiatives and product innovations are promising, but external economic pressures and input cost challenges pose risks. The stock's short-term technical strength and attractive dividend yield are significant positives.

Positive Factors

Negative Factors

Financial Performance

Reynolds Consumer Products reported Q1 results that were modestly below expectations on both sales and profitability.

Guidance Revision

Unanticipated retailer destocking and tariff impacts have tempered expectations, resulting in full-year guidance being revised lower and Q2 guidance coming in below expectations.

Retailer Destocking

Retailer destocking and macro uncertainty delay any expected return to volume growth.

Reynolds Consumer Products Business Overview & Revenue Model

Company Description

Reynolds Consumer Products (REYN) is a leading provider of household products renowned for its iconic brands such as Reynolds Wrap, Hefty, and Alcan. The company operates primarily within the consumer goods sector, offering a diverse range of products including aluminum foil, disposable tableware, waste bags, and other kitchen essentials. Reynolds Consumer Products is committed to delivering high-quality, innovative solutions that cater to everyday household needs, making it a staple in homes across North America.

How the Company Makes Money

Reynolds Consumer Products generates revenue through the manufacturing and sale of its extensive portfolio of household goods. The company's primary revenue streams are derived from its core product categories, which include cooking products like aluminum foil and parchment paper, waste and storage bags under the Hefty brand, and disposable tableware. Reynolds employs a retail distribution model, partnering with major grocery chains, mass merchandisers, and e-commerce platforms to ensure widespread availability of its products. Additionally, the company engages in strategic partnerships and licensing agreements to expand its market reach and enhance brand visibility, thereby contributing to its overall earnings.

Reynolds Consumer Products Financial Statement Overview

Summary

Reynolds Consumer Products demonstrates stable financial health with robust profitability and efficient equity utilization. However, challenges in revenue growth and a slight decline in free cash flow growth suggest a need for strategic initiatives to sustain and enhance its financial performance. The balanced leverage and equity structure provide a firm foundation, but managing debt levels remains crucial.

Income Statement

Reynolds Consumer Products shows a stable revenue base with a slight decline in the TTM period. The gross profit margin is robust at 25.5%, and the net profit margin stands at 8.5%. Margins indicate sound profitability, although the net margin has slightly decreased compared to previous years. Revenue growth has been relatively flat, indicating a need for strategic initiatives to boost sales.

Balance Sheet

The company maintains a strong equity position with a Debt-to-Equity ratio of 0.82, showing moderate leverage. Return on Equity (ROE) is 14.5%, indicating efficient use of equity, while the equity ratio is 44.2%, reflecting a balanced capital structure. However, the relatively high total debt may pose a risk if not managed effectively.

Cash Flow

Operating cash flow is healthy, with an operating cash flow to net income ratio of 1.46, indicating strong cash generation. Free cash flow to net income ratio is also favorable at 1.10. However, the free cash flow growth rate has declined by 7.3% in the latest TTM period, highlighting challenges in maintaining cash flow momentum.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.67B	3.69B	3.76B	3.82B	3.56B	3.26B
Gross Profit	934.00M	978.00M	942.00M	776.00M	811.00M	973.00M
EBITDA	659.00M	678.00M	636.00M	531.00M	587.00M	685.00M
Net Income	311.00M	352.00M	298.00M	258.00M	324.00M	363.00M
Balance Sheet
Total Assets	4.86B	4.87B	4.78B	4.93B	4.81B	4.72B
Cash, Cash Equivalents and Short-Term Investments	57.00M	137.00M	115.00M	38.00M	164.00M	312.00M
Total Debt	1.74B	1.79B	1.89B	2.16B	2.16B	2.28B
Total Liabilities	2.71B	2.73B	2.80B	3.06B	3.06B	3.11B
Stockholders Equity	2.15B	2.14B	1.98B	1.87B	1.76B	1.61B
Cash Flow
Free Cash Flow	342.00M	369.00M	540.00M	91.00M	169.00M	176.00M
Operating Cash Flow	453.00M	489.00M	644.00M	219.00M	310.00M	319.00M
Investing Cash Flow	-151.00M	-120.00M	-110.00M	-128.00M	-141.00M	-143.00M
Financing Cash Flow	-345.00M	-346.00M	-457.00M	-217.00M	-317.00M	34.00M

Reynolds Consumer Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REYN, the sentiment is Positive. The current price of 23.79 is above the 20-day moving average (MA) of 23.03, above the 50-day MA of 22.22, and above the 200-day MA of 23.69, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 67.56 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REYN.

Reynolds Consumer Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REYN	73 Outperform	$5.00B	16.10	14.85%	3.87%	-0.49%	-13.92%
SON	68 Neutral	$4.56B	30.97	3.98%	4.54%	0.90%	-118.86%
GPK	67 Neutral	$6.38B	12.19	17.71%	1.95%	-5.05%	-24.52%
SEE	65 Neutral	$4.82B	16.05	37.35%	2.44%	-2.00%	-18.50%
GEF	63 Neutral	$2.98B	22.53	7.46%	3.52%	-2.55%	-40.81%
Sector *	61 Neutral	$17.95B	12.83	-3.20%	2.97%	1.18%	-14.28%
SLGN	61 Neutral	$4.83B	16.04	14.54%	1.75%	5.49%	-1.01%

Reynolds Consumer Products Corporate Events

Reynolds Consumer Products Elects Duncan Hawkesby to Board

On July 23, 2025, Reynolds Consumer Products Inc. announced the election of Duncan Hawkesby to its Board of Directors, expanding the board from eight to nine members. Mr. Hawkesby, who is affiliated with the company’s controlling stockholder, Packaging Finance Limited, will serve as a Class II director until 2028. His appointment is not expected to impact board committee memberships, and he will not participate in non-employee director compensation arrangements due to his affiliation.