Reynolds Consumer Products (REYN) AI Stock Analysis

• Market Cap: $5.22B
• Dividend Yield: 3.97%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.12
• Revenue Growth: 0.76%
• EPS Growth: -17.69%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.59
• Shares Outstanding: 210,343,550
• 10 Day Avg. Volume: 870,130
• 30 Day Avg. Volume: 1,104,267
• PEG Ratio: -1.08
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 15.25
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 11.13
• 1Y Price Target: $26.57
• Price Target Upside: 7.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.72
• Revenue Forecast (FY): $3.76B

• Rating: 60 Neutral
• Price Target: $25.00 ▲(0.77% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score reflects solid cash generation and a reasonable valuation with an attractive dividend, offset by weak top-line trajectory and margin pressure. Technical signals are mixed and the latest guidance emphasizes stability amid ongoing category and commodity headwinds.

Positive Factors

Free cash flow generation

Consistently positive free cash flow (FCF) provides durable funding for dividends, deleveraging, and capital investment. FCF of $316M in 2025 supports the company’s ability to finance automation projects and voluntary debt paydowns without relying on external funding, enhancing financial resilience.

Brand strength & share gains

Sustained share gains and a portfolio of household brands (Reynolds, Hefty) create durable shelf presence and repeat purchase behavior. Broad category outperformance indicates pricing and distribution advantages that underpin recurring revenue and mitigate competitive pressure over the medium term.

Productivity & automation progress

Ongoing productivity initiatives and automation investments lower unit costs and SG&A, supporting margin recovery over time. Structural efficiency gains reduce exposure to input cost swings, improve operating leverage as volumes normalize, and fund future innovation without recurring cost increases.

Negative Factors

Multi-year revenue erosion

Sustained top-line decline reduces scale and pricing leverage, increasing vulnerability to fixed-cost absorption and margin pressure. Multi-year revenue softness signals structural demand challenges in key categories (e.g., foam) that may limit long-term growth unless product mix or new channels reverse the trend.

Commodity & tariff exposure

Large commodity and tariff cost shocks compress gross margins and constrain pricing flexibility, especially in foil where aluminum elasticity is high. Persistent input-cost volatility can force repeat pricing actions, erode promo effectiveness, and leave margins exposed if consumers or retailers resist further price increases.

Leverage and balance sheet data risk

Net leverage remains meaningful for a consumer-packaged-goods company and, while trending down to ~2.1x, still limits financial flexibility. Inconsistent 2025 reporting raises data-quality concerns, complicating assessment of solvency and capital allocation risk over the medium term.

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 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

Strong and consistently positive free cash flow supports the business, but multi-year revenue softness and margin compression weigh on quality. Balance sheet leverage appears to be improving, yet anomalous 2025 balance sheet figures reduce confidence in the latest-period balance sheet assessment.

Income Statement

Revenue has been drifting down for several years (2025: -8.1% after modest declines in 2023–2024), which is the key overhang. Profitability remains solid but has compressed versus 2020: gross margin fell from ~29.8% (2020) to ~24.7% (2025) and net margin from ~11.1% to ~8.1%. Still, earnings are positive and relatively stable ($301M net income in 2025 vs. $298M in 2023), suggesting resilience despite weaker top-line momentum.

Balance Sheet

Leverage looks moderate in recent years (debt roughly $1.77–$2.17B; 2024 debt-to-equity ~0.84 improving from ~1.42 in 2020), which is a positive trajectory. However, the 2025 balance sheet figures appear internally inconsistent (equity and assets shown near $1–$2M), which makes 2025 leverage and return measures unreliable and raises data-quality risk for that period. Using the more coherent 2020–2024 set, the balance sheet is workable but still meaningfully levered for a consumer packaging business.

Cash Flow

Cash generation is a clear strength: operating cash flow has generally covered earnings well (2023 operating cash flow meaningfully above net income), and free cash flow is consistently positive. After a weak 2022, free cash flow rebounded sharply in 2023 and remained healthy in 2024; 2025 shows free cash flow matching operating cash flow at $477M and equaling net income (1.0x), indicating strong cash conversion. The main weakness is volatility (notably the 2022 dip and 2024 decline in free cash flow).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.72B	3.69B	3.76B	3.82B	3.56B
Gross Profit	914.00M	978.00M	942.00M	776.00M	811.00M
EBITDA	614.00M	707.00M	661.00M	533.00M	583.00M
Net Income	301.00M	352.00M	298.00M	258.00M	324.00M
Balance Sheet
Total Assets	4.94B	4.87B	4.83B	4.93B	4.81B
Cash, Cash Equivalents and Short-Term Investments	147.00M	137.00M	115.00M	38.00M	164.00M
Total Debt	1.76B	1.79B	1.91B	2.17B	2.17B
Total Liabilities	2.68B	2.73B	2.85B	3.06B	3.06B
Stockholders Equity	2.25B	2.14B	1.98B	1.87B	1.76B
Cash Flow
Free Cash Flow	316.00M	369.00M	540.00M	91.00M	169.00M
Operating Cash Flow	477.00M	489.00M	644.00M	219.00M	310.00M
Investing Cash Flow	-161.00M	-120.00M	-110.00M	-128.00M	-141.00M
Financing Cash Flow	-306.00M	-346.00M	-457.00M	-217.00M	-317.00M

Reynolds Consumer Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 24.81 is above the 20-day moving average (MA) of 23.57, above the 50-day MA of 23.42, and above the 200-day MA of 22.76, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.92 is Negative, 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
SEE	71 Outperform	$6.17B	15.57	40.42%	1.94%	-1.22%	-0.76%
SON	71 Outperform	$5.57B	14.19	20.07%	4.33%	8.31%	-99.39%
GEF	63 Neutral	$3.68B	19.30	2.08%	3.19%	-17.63%	-80.32%
SLGN	63 Neutral	$5.07B	17.79	13.53%	1.97%	11.10%	6.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
REYN	60 Neutral	$5.22B	17.34	13.70%	3.97%	0.76%	-17.69%
GPK	58 Neutral	$3.61B	8.26	13.99%	2.91%	-3.93%	-27.37%