Reynolds Consumer Products (REYN) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: 4.22%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.13
• Revenue Growth: -0.97%
• EPS Growth: 1.45%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Packaging & Containers
• EPS (TTM): 0.23
• Shares Outstanding: 210,323,270
• 10 Day Avg. Volume: 2,325,506
• 30 Day Avg. Volume: 1,455,785
• PEG Ratio: -1.21
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.12
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 3.16
• 1Y Price Target: $26.13
• Price Target Upside: 19.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $25.00 ▲(14.57%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

Leadership Initiatives

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

Negative Factors

Financial Guidance

Full-year guidance has been revised lower and Q2 guidance came in below expectations.

Volume and Margin Challenges

The current environment presents another hurdle for sustainable volume growth and margin stability.

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 shows a well-rounded financial performance with strong profitability and cash flow metrics. Despite some slowing in revenue growth, the company maintains robust margins and an effective balance sheet. The company's ability to generate free cash flow and manage leverage effectively is a positive indicator of financial health.

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
EBITDA	648.00M	678.00M	636.00M	531.00M	587.00M	685.00M
Net Income	335.00M	352.00M	298.00M	258.00M	324.00M	363.00M
Balance Sheet
Total Assets	4.84B	4.93B	4.78B	4.93B	4.81B	4.72B
Cash, Cash Equivalents and Short-Term Investments	58.00M	137.00M	115.00M	38.00M	164.00M	312.00M
Total Debt	1.74B	1.78B	1.89B	2.16B	2.16B	2.28B
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: Neutral
• Last Price: 21.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 21.82 is above the 20-day moving average (MA) of 21.50, below the 50-day MA of 22.22, and below the 200-day MA of 25.30, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$6.07B	21.03	14.52%	1.41%	1.99%	-5.30%
REYN	73 Outperform	$4.59B	13.71	16.30%	4.22%	-0.97%	1.45%
SON	71 Outperform	$4.59B	30.23	5.54%	4.54%	-4.58%	-61.14%
SEE	68 Neutral	$4.77B	15.68	43.40%	2.44%	-2.45%	-16.55%
Sector *	65 Neutral	€21.52B	12.88	7.21%	3.39%	0.31%	-40.22%
GPK	64 Neutral	$6.64B	10.79	20.62%	2.00%	-6.28%	-7.43%

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.