Reynolds Consumer Products (REYN) AI Stock Analysis

• Market Cap: $4.66B
• Dividend Yield: 4.08%
• Average Volume (3M): 719.39K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.12
• Revenue Growth: -0.97%
• EPS Growth: 1.45%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Packaging & Containers
• EPS (TTM): 0.23
• Shares Outstanding: 210,323,270
• 10 Day Avg. Volume: 762,014
• 30 Day Avg. Volume: 719,389
• PEG Ratio: -3.07
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.13
• Price Target Upside: 18.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $25.00 ▲( 12.92% Upside)

Reynolds Consumer Products displays strong financial health and attractive valuation metrics, contributing positively to its stock score. However, technical analysis indicates potential short-term headwinds, and mixed earnings call outcomes highlight challenges such as retailer destocking and tariff impacts. Strategic investments and refinancing provide a positive outlook for long-term shareholder value.

Positive Factors

Future Outlook

There is potential for a more constructive outlook when evidence of sustainable volume growth and stable margins emerges.

Leadership Initiatives

CEO Mr. Huckins’ initiatives and investments are considered the right move.

Negative Factors

Financial Performance

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

Guidance and Expectations

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

Market Conditions

The current environment presents another hurdle, making it difficult to see sustainable volume growth and stable margins.

Reynolds Consumer Products Business Overview & Revenue Model

Company Description

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: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and E-Z Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including blue and clear recycling bags, compostable bags, bags made from recycled materials, and the Hefty EnergyBag Program. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. Reynolds Consumer Products Inc. offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. operates as a subsidiary of Packaging Finance Limited.

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 exhibits strong financial performance with robust profitability metrics and effective cash flow management. Despite a slight decline in revenue growth, margins remain healthy. The balance sheet reflects balanced leverage and a solid equity base, positioning the company well in the industry.

Income Statement

Reynolds Consumer Products has demonstrated a solid revenue base with a slight decline in the TTM period. The gross profit margin is healthy at 26.5%, and the net profit margin stands at 9.2%, indicating a stable earning capacity. EBIT and EBITDA margins remain strong at 14.7% and 17.3%, respectively. Although revenue growth has slowed in recent periods, the company maintains strong profitability metrics.

Balance Sheet

The company exhibits a moderate debt-to-equity ratio of 0.83, indicating balanced leverage. The equity ratio is stable at 43.9%, reflecting a solid equity position. The return on equity is robust at 15.8%, showcasing efficient use of shareholder funds. There is moderate risk from debt levels, but overall, the balance sheet is solid with a consistent equity base.

Cash Flow

Reynolds demonstrates strong cash flow management with an operating cash flow to net income ratio of 1.33, reflecting effective conversion of net income to cash. The free cash flow to net income ratio is 1.06, indicating good free cash flow generation relative to earnings. The company has successfully grown its free cash flow by 75.1% from the previous year, showcasing a strong cash flow position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.66B	3.69B	3.76B	3.82B	3.56B	3.26B
	Gross Profit
964.00M	978.00M	942.00M	776.00M	811.00M	973.00M
	EBIT
534.00M	549.00M	512.00M	414.00M	478.00M	586.00M
	EBITDA
648.00M	678.00M	636.00M	531.00M	587.00M	685.00M
	Net Income Common Stockholders
335.00M	352.00M	298.00M	258.00M	324.00M	363.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.00M	137.00M	115.00M	38.00M	164.00M	312.00M
	Total Assets
4.84B	4.93B	4.78B	4.93B	4.81B	4.72B
	Total Debt
1.74B	1.78B	1.89B	2.16B	2.16B	2.28B
	Net Debt
1.68B	1.64B	1.77B	2.12B	1.99B	1.97B
	Total Liabilities
2.72B	2.73B	2.80B	3.06B	3.06B	3.11B
	Stockholders Equity
2.12B	2.14B	1.98B	1.87B	1.76B	1.61B
Cash Flow		Free Cash Flow
316.00M	369.00M	540.00M	91.00M	169.00M	176.00M
	Operating Cash Flow
446.00M	489.00M	644.00M	219.00M	310.00M	319.00M
	Investing Cash Flow
-130.00M	-120.00M	-110.00M	-128.00M	-141.00M	-143.00M
	Financing Cash Flow
-392.00M	-346.00M	-457.00M	-217.00M	-317.00M	34.00M

Reynolds Consumer Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REYN, the sentiment is Negative. The current price of 22.14 is below the 20-day moving average (MA) of 22.89, below the 50-day MA of 23.17, and below the 200-day MA of 26.47, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REYN.

Reynolds Consumer Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLGN	73 Outperform	$5.87B	20.35	14.52%	1.40%	1.99%	-5.30%
REYN	73 Outperform	$4.66B	13.91	16.30%	4.08%	-0.97%	1.45%
SEE	71 Outperform	$4.74B	15.58	43.40%	2.48%	-2.45%	-16.55%
SON	70 Outperform	$4.55B	29.97	5.54%	4.59%	-4.58%	-61.14%
BERY	67 Neutral	$7.83B	14.54	21.42%	1.73%	-8.26%	10.64%
GPK	64 Neutral	$6.83B	11.09	20.62%	1.80%	-6.28%	-7.43%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%

Reynolds Consumer Products Corporate Events

Reynolds Consumer Products Announces Leadership Changes

On May 8, 2025, Reynolds Consumer Products announced the resignation of Rachel Bishop, President of Hefty Tableware, effective June 30, 2025. The company has appointed Ryan Clark as her successor and Carlen Hooker as the new Chief Commercial Officer, effective June 16, 2025. These leadership changes aim to accelerate the company’s strategy for revenue growth, market share gains, and margin expansion. The appointments are expected to strengthen the company’s operations and drive long-term value for customers and shareholders.

The most recent analyst rating on (REYN) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Reynolds Consumer Products stock, see the REYN Stock Forecast page.

Reynolds Consumer Products Refinances $1.645 Billion Loan

On March 4, 2025, Reynolds Consumer Products announced the successful refinancing of its $1.645 billion term loan facility, extending the maturity to 2032 and improving financial flexibility. The refinancing, led by JP Morgan, reflects the company’s strong credit profile and aims to support strategic priorities and long-term shareholder value.