Reynolds Consumer Products (REYN) AI Stock Analysis

• Market Cap: $4.90B
• Dividend Yield: 4.03%
• Average Volume (3M): 831.14K
• 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: 62
• Industry: Packaging & Containers
• EPS (TTM): 1.59
• Shares Outstanding: 210,323,270
• 10 Day Avg. Volume: 783,938
• 30 Day Avg. Volume: 831,144
• PEG Ratio: 9.60
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.13
• Price Target Upside: 12.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Reynolds Consumer Products displays strong financial health with solid profitability and effective cash flow management, contributing positively to its stock score. The valuation is attractive, with reasonable P/E and high dividend yield. 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 and Strategy

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 Forecast

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

Market Challenges

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 (REYN) is a leading company in the consumer goods sector, specializing in the production and distribution of household essentials. The company's core products include aluminum foil, plastic wrap, waste bags, and disposable tableware, sold under well-known brand names such as Reynolds Wrap, Hefty, and Alcan. Operating primarily in North America, Reynolds Consumer Products serves both retail and commercial markets, offering a range of products designed for food storage, waste management, and cooking convenience.

How the Company Makes Money

Reynolds Consumer Products generates revenue through the sale of its consumer goods products in grocery stores, mass merchants, and online platforms. The company has a diverse portfolio of trusted brands that cater to everyday consumer needs, ensuring a steady demand for its products. Key revenue streams include the sale of aluminum foil and food storage solutions under the Reynolds Wrap brand, which are staple items in households. Additionally, the Hefty brand contributes significantly to revenue through its line of waste bags and disposable tableware. Partnerships with major retailers and distributors amplify the company's market reach, while ongoing product innovation and brand loyalty help sustain and grow earnings. The company's ability to leverage economies of scale and maintain efficient production processes also plays a crucial role in its profitability.

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

Reynolds Consumer Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 23.31 is below the 20-day moving average (MA) of 23.41, below the 50-day MA of 23.76, and below the 200-day MA of 27.01, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 41.49 is Neutral, 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	74 Outperform	$5.87B	21.26	14.52%	1.46%	1.99%	-5.28%
REYN	69 Neutral	$4.90B	13.93	16.30%	4.03%	-0.97%	1.45%
BERY	67 Neutral	$7.83B	16.83	19.44%	1.73%	-5.35%	-13.51%
SEE	65 Neutral	$4.11B	15.17	45.91%	2.93%	-1.75%	-21.15%
GPK	64 Neutral	$6.58B	10.11	20.62%	1.92%	-6.28%	-7.43%
SON	64 Neutral	$4.35B	26.73	5.52%	4.81%	-4.57%	―
Sector *	61 Neutral	$6.66B	11.71	2.96%	4.01%	2.64%	-20.91%

Reynolds Consumer Products Corporate Events

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.