Reynolds Consumer Products (REYN) AI Stock Analysis

• Market Cap: $5.23B
• Dividend Yield: 3.93%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.16
• Revenue Growth: 0.76%
• EPS Growth: -17.69%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.42
• Shares Outstanding: 210,329,620
• 10 Day Avg. Volume: 1,468,168
• 30 Day Avg. Volume: 1,195,902
• PEG Ratio: 0.88
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 15.37
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: $26.86
• Price Target Upside: 13.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.62
• Revenue Forecast (FY): $3.68B

• Rating: 75 Outperform
• Price Target: $28.00 ▲(17.99% Upside)

Reynolds Consumer Products demonstrates solid financial performance with strong cash flow and stable profitability. Technical indicators show positive momentum, and the valuation is reasonable with a good dividend yield. The earnings call provided a balanced view of strengths in market share and innovation against challenges in specific segments. Overall, the stock is positioned well for steady performance, with room for growth through strategic initiatives.

Positive Factors

Market Share Gains

Gaining market share in key categories like Hefty Waste Bags and Reynolds Wrap indicates strong brand positioning and competitive advantage, which supports long-term revenue stability and growth.

Cash Flow Generation

Strong free cash flow growth enhances the company's ability to invest in strategic initiatives, pay down debt, and return capital to shareholders, supporting long-term financial health.

Innovation and Product Development

Successful new product launches like Fun Foil and Air Fryer Liners demonstrate the company's ability to innovate and adapt to consumer trends, ensuring sustained market relevance.

Negative Factors

Revenue Growth Challenges

Flat to declining revenue guidance reflects challenges in achieving growth, potentially impacting future profitability and market expansion efforts.

Tableware Business Challenges

Declining tableware sales highlight vulnerabilities in specific product lines, which could affect overall revenue and necessitate strategic adjustments.

Operating Environment Challenges

Economic pressures on consumers and retailers may limit demand for non-essential products, affecting sales and profitability in the near to medium term.

Reynolds Consumer Products Business Overview & Revenue Model

Company Description

Reynolds Consumer Products (REYN) is a leading manufacturer and marketer of essential household products, primarily known for its disposable food storage and preparation solutions. The company operates in the consumer products sector, offering a diverse range of items that include aluminum foil, plastic wrap, and trash bags under well-known brands such as Reynolds Wrap and Hefty. Reynolds Consumer Products focuses on providing innovative and high-quality products that enhance the convenience and efficiency of everyday tasks for consumers.

How the Company Makes Money

Reynolds Consumer Products generates revenue primarily through the sale of its consumer goods to retail and wholesale distributors. The company benefits from a strong brand presence, which aids in driving consumer loyalty and repeat purchases. Its revenue model is largely based on product sales across various distribution channels, including supermarkets, mass merchants, and e-commerce platforms. Key revenue streams include sales of aluminum foil, food storage bags, and trash bags, which are staples in many households. Additionally, Reynolds leverages partnerships with major retailers to enhance product visibility and availability, contributing to its overall sales growth. The company also invests in marketing and promotional activities to boost brand recognition and attract new customers.

Reynolds Consumer Products Financial Statement Overview

Summary

Reynolds Consumer Products shows stable profitability with a consistent gross profit margin and healthy EBIT and EBITDA margins. However, there is slight pressure on net profit margins and return on equity. The company demonstrates strong cash flow metrics, indicating efficient cash management and the ability to support future initiatives.

Income Statement

Reynolds Consumer Products shows a stable income statement with a consistent gross profit margin around 25% over recent periods. The net profit margin has slightly decreased in the TTM period to 8.2% from 9.5% in 2024, indicating some pressure on profitability. Revenue growth has been modest, with a slight decline in recent years, but a positive growth rate in the TTM period suggests potential recovery. EBIT and EBITDA margins remain healthy, supporting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.80 in the TTM period, showing improvement from previous years, indicating better leverage management. Return on equity has slightly decreased to 14.2% in the TTM period from 16.4% in 2024, suggesting a slight decline in profitability relative to shareholder equity. The equity ratio remains stable, indicating a balanced capital structure.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 11.4% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is robust at 0.75, reflecting good cash conversion. The free cash flow to net income ratio is also strong at 0.90, highlighting efficient cash management and the ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.71B	3.69B	3.76B	3.82B	3.56B	3.26B
Gross Profit	928.00M	978.00M	942.00M	776.00M	811.00M	973.00M
EBITDA	645.00M	707.00M	661.00M	533.00M	583.00M	681.00M
Net Income	304.00M	352.00M	298.00M	258.00M	324.00M	363.00M
Balance Sheet
Total Assets	4.90B	4.87B	4.78B	4.93B	4.81B	4.72B
Cash, Cash Equivalents and Short-Term Investments	53.00M	137.00M	115.00M	38.00M	164.00M	312.00M
Total Debt	1.75B	1.79B	1.89B	2.17B	2.16B	2.28B
Total Liabilities	2.72B	2.73B	2.80B	3.06B	3.06B	3.11B
Stockholders Equity	2.18B	2.14B	1.98B	1.87B	1.76B	1.61B
Cash Flow
Free Cash Flow	381.00M	369.00M	540.00M	91.00M	169.00M	176.00M
Operating Cash Flow	422.00M	489.00M	644.00M	219.00M	310.00M	319.00M
Investing Cash Flow	-165.00M	-120.00M	-110.00M	-128.00M	-141.00M	-143.00M
Financing Cash Flow	-299.00M	-346.00M	-457.00M	-217.00M	-317.00M	34.00M

Reynolds Consumer Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.73
• 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 23.73 is below the 20-day moving average (MA) of 24.13, below the 50-day MA of 23.78, and above the 200-day MA of 23.05, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 47.12 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	75 Outperform	$5.23B	17.23	14.32%	3.93%	0.76%	-17.69%
SEE	70 Outperform	$5.39B	13.63	40.42%	2.17%	-1.22%	-0.76%
SLGN	66 Neutral	$4.04B	12.98	14.58%	2.03%	11.10%	6.54%
GEF	65 Neutral	$2.83B	4.05	2.08%	3.70%	-17.63%	208.81%
GPK	64 Neutral	$5.05B	10.04	16.24%	2.67%	-3.93%	-27.37%
SON	63 Neutral	$4.01B	4,193.81	6.39%	5.21%	8.31%	-99.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Reynolds Consumer Products Corporate Events

Reynolds Consumer Products Reports Steady Q3 2025 Performance

Reynolds Consumer Products Inc., a prominent player in the household essentials sector, is known for its iconic brands like Reynolds Wrap and Hefty, offering solutions for cooking, cleanup, and food storage. The company has a significant presence in U.S. homes, holding a leading market share in most of its categories.

Reynolds Consumer Products’ Earnings Call Highlights Market Gains

Reynolds Consumer Products Inc. recently held its earnings call, revealing a generally positive sentiment despite facing some challenges. The company showcased strong market share gains and revenue performance, effectively managing costs and driving innovation. However, it acknowledged challenges in its tableware business and potential risks in store brand relationships.

Reynolds Consumer Products Reports Q2 2025 Results

Reynolds Consumer Products Inc., a leading provider of household essentials, is renowned for its iconic brands like Reynolds Wrap and Hefty. The company operates primarily in the consumer goods sector, offering solutions for cooking, cleanup, and food storage.

Reynolds Consumer Products: Resilient Amidst Challenges

Reynolds Consumer Products Inc. recently held its earnings call, revealing a generally positive sentiment despite facing a challenging consumer environment and pressures on gross profit. The company reported solid volume growth and market share gains, driven by product innovation. Strategic investments and pricing adjustments are being implemented to recover increased costs, and while there are pressures on adjusted EBITDA and EPS, the overall outlook remains confident.