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Reynolds Consumer Products
(NASDAQ:REYN)
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Rating:68Neutral
Price Target:
$28.00
▲(9.33% Upside)
Action:Reiterated
Date:07/29/26
REYN scores 68 driven primarily by steady financial performance (solid profitability, improving leverage, and strong free cash flow) and a reasonable valuation supported by a ~3.6% dividend yield. The score is tempered by mixed technical positioning (near-term softness vs. the 20-day average) and earnings-call risks centered on substantially higher commodity headwinds and cautious near-term guidance despite productivity-driven margin progress.
Positive Factors
Strong cash generation
Sustained OCF of ~$503M and FCF ~$421M provide internal funding for capex, dividends and reinvestment. Reliable free cash flow reduces reliance on external financing, supports the 25% YTD capex increase for automation, and cushions the business versus cyclical shocks over the next several quarters.
Negative Factors
Escalating commodity cost pressure
A ~$400M annualized commodity headwind is a material structural cost shock that can erode gross margins absent offsetting pricing or productivity. Given pricing elasticity risks, sustained elevated input costs could compress profitability and force difficult trade-offs between margin protection and volume retention over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained OCF of ~$503M and FCF ~$421M provide internal funding for capex, dividends and reinvestment. Reliable free cash flow reduces reliance on external financing, supports the 25% YTD capex increase for automation, and cushions the business versus cyclical shocks over the next several quarters.
Read all positive factors
Reynolds Consumer Products Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Tracks underlying operating profitability for each business segment after removing one-time items, revealing which parts of the company generate cash, which carry higher costs or lower margins, and where efficiency gains or margin pressure will most affect earnings and free cash flow.
Tracks underlying operating profitability for each business segment after removing one-time items, revealing which parts of the company generate cash, which carry higher costs or lower margins, and where efficiency gains or margin pressure will most affect earnings and free cash flow.
Data provided by:
The Fly
The FlyReynolds Consumer Products (REYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.26B
Dividend Yield3.69%
Average Volume (3M)1.20M
Price to Earnings (P/E)15.2
Beta (1Y)0.19
Revenue Growth2.69%
EPS Growth10.81%
CountryUS
Employees6,000
SectorConsumer Cyclical
Sector Strength84
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.64
Shares Outstanding210,790,990
10 Day Avg. Volume998,234
30 Day Avg. Volume1,202,848
Financial Highlights & Ratios
PEG Ratio-1.08
Price to Book (P/B)2.14
Price to Sales (P/S)1.30
P/FCF Ratio15.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$25.80Price Target Upside0.74% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.61
Revenue Forecast (FY)$3.74B
Reynolds Consumer Products Business Overview & Revenue Model
Company Description
Reynolds Consumer Products Inc. produces and sells products in cooking, serving, cleanup, and storage, and tableware product categories in the United States and internationally. The company operates through four segments: Reynolds Cooking & Baking...
How the Company Makes Money
Reynolds Consumer Products makes money primarily by selling branded and private-label household consumable products to large retailers and other customers. Revenue is generated through high-volume, repeat-purchase categories (e.g., trash bags, foo...
Reynolds Consumer Products Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial performance: modest revenue growth, margin expansion (200 bps in Q2), EBITDA and EPS growth, stronger cash flow, and clear productivity and automation benefits that funded reinvestment. The company also reported meaningful brand and distribution wins (notably Hefty) and upgraded its revenue outlook. However, material risks remain—most notably a sharp increase in annualized commodity headwinds to ~$400 million, a pressured consumer environment with elevated promotional intensity, private label distribution losses in certain categories, and the potential for pricing elasticity to pressure margins in H2. On balance, management demonstrated that productivity gains and execution are offsetting inflationary and demand pressures, supporting the view that highlights modestly outweigh the lowlights.Positive Updates
Earnings and Margin Expansion
Adjusted EBITDA of $171 million in Q2, up $8 million or ~5% year-over-year; adjusted EPS of $0.42, up 7% year-over-year. Gross margin improvement of ~200 basis points in Q2 (building on ~50 bps in Q1) and gross profit up $38 million for the first half, driving 3 consecutive quarters of EBITDA growth.
Negative Updates
Escalating Commodity Pressure
Annualized commodity headwind now expected to be approximately $400 million (up from $200 million in April), reflecting volatile commodity markets. Management noted commodities finished Q2 higher than they started, despite some late-Q2 easing in aluminum.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and Margin Expansion
Adjusted EBITDA of $171 million in Q2, up $8 million or ~5% year-over-year; adjusted EPS of $0.42, up 7% year-over-year. Gross margin improvement of ~200 basis points in Q2 (building on ~50 bps in Q1) and gross profit up $38 million for the first half, driving 3 consecutive quarters of EBITDA growth.
Read all positive updates
Company Guidance
Reynolds raised its full‑year revenue outlook to low single‑digit growth versus 2025 net revenues of $3.721B (up from a prior midpoint of down 1%) while keeping earnings guidance unchanged: net income/adjusted net income of $331–$343M, EPS/adjusted EPS of $1.57–$1.63, and adjusted EBITDA of $660–$675M; management now expects roughly $400M of annualized commodity headwinds (vs. $200M previously) but said ongoing productivity and automation should help offset inflation, non‑retail revenue is expected to be flat for the year, and YTD capex is up ~25%. For Q3 the company expects net revenues to be roughly flat versus Q3 2025 revenue of $931M, net income/adjusted net income of $79–$83M, adjusted EBITDA of $160–$165M (vs. $168M in Q3 2025) and EPS/adjusted EPS of $0.37–$0.39; leverage sits near 2.1x net debt/EBITDA. These targets are supported by first‑half results of $1.8B revenue (+4% YTD), adjusted EBITDA $302M (+8% YTD), gross profit +$38M (margin +120 bps YTD), Q2 revenue $944M (+1%), Q2 adjusted EBITDA $171M (+5%), and H1 operating cash flow of $173M (vs. $147M).Reynolds Consumer Products Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.79B | 3.72B | 3.69B | 3.76B | 3.82B | 3.56B |
| Gross Profit | 951.00M | 914.00M | 978.00M | 942.00M | 776.00M | 811.00M |
| EBITDA | 628.00M | 614.00M | 707.00M | 661.00M | 533.00M | 583.00M |
| Net Income | 345.00M | 301.00M | 352.00M | 298.00M | 258.00M | 324.00M |
Balance Sheet | ||||||
| Total Assets | 5.08B | 4.94B | 4.87B | 4.83B | 4.93B | 4.81B |
| Cash, Cash Equivalents and Short-Term Investments | 66.00M | 147.00M | 137.00M | 115.00M | 38.00M | 164.00M |
| Total Debt | 1.66B | 1.76B | 1.79B | 1.91B | 2.17B | 2.17B |
| Total Liabilities | 2.77B | 2.68B | 2.73B | 2.85B | 3.06B | 3.06B |
| Stockholders Equity | 2.31B | 2.25B | 2.14B | 1.98B | 1.87B | 1.76B |
Cash Flow | ||||||
| Free Cash Flow | 320.00M | 316.00M | 369.00M | 540.00M | 91.00M | 169.00M |
| Operating Cash Flow | 503.00M | 477.00M | 489.00M | 644.00M | 219.00M | 310.00M |
| Investing Cash Flow | -183.00M | -161.00M | -120.00M | -110.00M | -128.00M | -141.00M |
| Financing Cash Flow | -311.00M | -306.00M | -346.00M | -457.00M | -217.00M | -317.00M |
Reynolds Consumer Products Technical Analysis
Positive
25.61
Price Trends
24.94
Positive
23.06
Positive
23.17
Positive
Market Momentum
0.28
Negative
58.89
Neutral
82.97
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 25.61 is below the 20-day moving average (MA) of 25.92, above the 50-day MA of 24.94, and above the 200-day MA of 23.17, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REYN.
Reynolds Consumer Products Risk Analysis
Reynolds Consumer Products disclosed 41 risk factors in its most recent earnings report. Reynolds Consumer Products reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reynolds Consumer Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.46B | 4.91 | 33.43% | 2.93% | -24.38% | 43.47% | |
71 Outperform | $5.57B | 8.70 | 18.34% | 3.66% | 12.01% | ― | |
68 Neutral | $5.26B | 15.21 | 15.32% | 3.59% | 2.69% | 10.81% | |
63 Neutral | $4.23B | 15.68 | 11.69% | 1.77% | 8.43% | -9.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.17B | 11.54 | 5.92% | 3.99% | -0.17% | -55.17% |
* Consumer Cyclical Sector Average
REYN
Reynolds Consumer Products
26.52
4.86
22.45%
GPK
Graphic Packaging
12.10
-9.44
-43.81%
GEF
Greif Class A
88.68
24.79
38.79%
SLGN
Silgan Holdings
41.71
-3.65
-8.04%
SON
Sonoco Products
58.02
14.47
33.22%
Reynolds Consumer Products Corporate Events
Executive/Board ChangesShareholder Meetings
Reynolds Consumer Products Shareholders Back Board and Governance
Positive
Apr 30, 2026
Reynolds Consumer Products held its Annual Meeting of Stockholders on April 29, 2026, where shareholders elected Marla Gottschalk, Scott Huckins, and Rolf Stangl as Class II directors to serve until the 2029 annual meeting, signaling continuity in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.