Education
About Us
Working with TipRanks
Follow Us
Reynolds Consumer Products Inc (REYN)
NASDAQ:REYN
Top Page
Reynolds Consumer Products
(NASDAQ:REYN)
Select Model
Select Model
Rating:75Outperform
Price Target:
$28.00
â–²(17.99% Upside)
Reynolds Consumer Products demonstrates solid financial performance with strong cash flow and stable profitability. Technical indicators show positive momentum, and the valuation is reasonable with a good dividend yield. The earnings call provided a balanced view of strengths in market share and innovation against challenges in specific segments. Overall, the stock is positioned well for steady performance, with room for growth through strategic initiatives.
Positive Factors
Market Share Gains
Gaining market share in key categories like Hefty Waste Bags and Reynolds Wrap indicates strong brand positioning and competitive advantage, which supports long-term revenue stability and growth.
Cash Flow Generation
Strong free cash flow growth enhances the company's ability to invest in strategic initiatives, pay down debt, and return capital to shareholders, supporting long-term financial health.
Innovation and Product Development
Successful new product launches like Fun Foil and Air Fryer Liners demonstrate the company's ability to innovate and adapt to consumer trends, ensuring sustained market relevance.
Negative Factors
Revenue Growth Challenges
Flat to declining revenue guidance reflects challenges in achieving growth, potentially impacting future profitability and market expansion efforts.
Tableware Business Challenges
Declining tableware sales highlight vulnerabilities in specific product lines, which could affect overall revenue and necessitate strategic adjustments.
Operating Environment Challenges
Economic pressures on consumers and retailers may limit demand for non-essential products, affecting sales and profitability in the near to medium term.
Reynolds Consumer Products (REYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.99B
Dividend Yield3.97%
Average Volume (3M)707.50K
Price to Earnings (P/E)16.4
Beta (1Y)0.17
Revenue Growth0.76%
EPS Growth-17.69%
CountryUS
Employees6,400
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.42
Shares Outstanding210,329,620
10 Day Avg. Volume694,017
30 Day Avg. Volume707,499
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)2.65
Price to Sales (P/S)1.53
P/FCF Ratio15.37
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit7.36
Enterprise Value/Ebitda10.59
Forecast
1Y Price Target
$27.43Price Target Upside15.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reynolds Consumer Products Business Overview & Revenue Model
Company DescriptionReynolds 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 MoneyReynolds 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
Reynolds Consumer Products demonstrated strong market share gains and revenue performance amidst a challenging economic environment. The company effectively managed costs and drove innovation, although faced challenges in its tableware business and potential risks in store brand relationships.Q3-2025 Updates
Positive Updates
Market Share Gains
Reynolds Consumer Products achieved strong retail performance, gaining market share in the majority of its categories, including Hefty Waste Bags, Hefty Party Cups, Reynolds Wrap, Reynolds Kitchen Parchment products, and store brand food bags.
Revenue and Earnings Performance
Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the prior year, and earnings were at the upper end of the guidance.
Innovation and Product Development
Reynolds Wrap Fun Foil and Reynolds Kitchens Air Fryer Liners saw strong performance and distribution gains, while Hefty ECOSAVE compostable cutlery and Hefty Fabuloso Watermelon waste bags achieved significant market traction.
Cost Management Initiatives
The company made progress in managing manufacturing and supply chain costs, implementing technology, lean principles, and automation to drive efficiencies.
Negative Updates
Tableware Business Challenges
Tableware sales volumes were down 13%, impacted by foam product declines and discretionary nature of the category, though profitability improved.
Operating Environment Challenges
The operating environment remains challenging with low and middle-income consumers under pressure and retailers facing cost inflation, particularly from tariffs.
Potential Risks in Store Brand Relationships
There is a risk of retailers shifting store brand business to other suppliers in a bid to drive value for consumers amidst the challenging economic environment.
Company Guidance
During the third quarter of 2025, Reynolds Consumer Products reported a net revenue increase to $931 million, up from $910 million in the previous year. Retail revenue grew by 1% to $864 million, with volume growth of 1%, excluding foam products. Non-retail revenues also rose by $13 million to $67 million. The company's consolidated adjusted EBITDA was $168 million, compared to $171 million the previous year, while adjusted EPS increased slightly to $0.42 from $0.41. The company achieved significant market share gains across various categories, including Hefty Waste Bags and Reynolds Wrap, and implemented pricing actions to offset cost pressures from commodities and tariffs. Looking ahead, Reynolds adjusted its full-year guidance to anticipate flat to a 1% decline in net revenues compared to 2024, with an expected adjusted EBITDA range of $655 million to $665 million. The company is also planning increased capital spending to support growth, margin improvement, and a robust earnings model.Reynolds Consumer Products Financial Statement Overview
Summary
Reynolds Consumer Products shows stable profitability with a consistent gross profit margin and healthy EBIT and EBITDA margins. However, there is slight pressure on net profit margins and return on equity. The company demonstrates strong cash flow metrics, indicating efficient cash management and the ability to support future initiatives.Income Statement
Reynolds Consumer Products shows a stable income statement with a consistent gross profit margin around 25% over recent periods. The net profit margin has slightly decreased in the TTM period to 8.2% from 9.5% in 2024, indicating some pressure on profitability. Revenue growth has been modest, with a slight decline in recent years, but a positive growth rate in the TTM period suggests potential recovery. EBIT and EBITDA margins remain healthy, supporting operational efficiency.Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.80 in the TTM period, showing improvement from previous years, indicating better leverage management. Return on equity has slightly decreased to 14.2% in the TTM period from 16.4% in 2024, suggesting a slight decline in profitability relative to shareholder equity. The equity ratio remains stable, indicating a balanced capital structure.Cash Flow
Cash flow analysis shows strong free cash flow growth of 11.4% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is robust at 0.75, reflecting good cash conversion. The free cash flow to net income ratio is also strong at 0.90, highlighting efficient cash management and the ability to generate cash relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.71B | 3.69B | 3.76B | 3.82B | 3.56B | 3.26B |
| Gross Profit | 928.00M | 978.00M | 942.00M | 776.00M | 811.00M | 973.00M |
| EBITDA | 645.00M | 707.00M | 661.00M | 533.00M | 583.00M | 681.00M |
| Net Income | 304.00M | 352.00M | 298.00M | 258.00M | 324.00M | 363.00M |
Balance Sheet | ||||||
| Total Assets | 4.90B | 4.87B | 4.83B | 4.93B | 4.81B | 4.77B |
| Cash, Cash Equivalents and Short-Term Investments | 53.00M | 137.00M | 115.00M | 38.00M | 164.00M | 312.00M |
| Total Debt | 1.75B | 1.79B | 1.91B | 2.17B | 2.17B | 2.30B |
| Total Liabilities | 2.72B | 2.73B | 2.85B | 3.06B | 3.06B | 3.16B |
| Stockholders Equity | 2.18B | 2.14B | 1.98B | 1.87B | 1.76B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 257.00M | 369.00M | 540.00M | 91.00M | 169.00M | 176.00M |
| Operating Cash Flow | 422.00M | 489.00M | 644.00M | 219.00M | 310.00M | 319.00M |
| Investing Cash Flow | -165.00M | -120.00M | -110.00M | -128.00M | -141.00M | -143.00M |
| Financing Cash Flow | -299.00M | -346.00M | -457.00M | -217.00M | -317.00M | 34.00M |
Reynolds Consumer Products Technical Analysis
Positive
23.73
Price Trends
24.03
Negative
23.66
Positive
22.83
Positive
Market Momentum
-0.18
Negative
52.61
Neutral
90.06
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 23.73 is above the 20-day moving average (MA) of 23.52, below the 50-day MA of 24.03, and above the 200-day MA of 22.83, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 90.06 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 44 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.99B | 16.43 | 14.32% | 3.97% | 0.76% | -17.69% | |
71 Outperform | $6.11B | 15.43 | 40.42% | 1.94% | -1.22% | -0.76% | |
68 Neutral | $4.52B | 14.52 | 14.58% | 1.97% | 11.10% | 6.54% | |
67 Neutral | $3.61B | 79.54 | 2.08% | 3.19% | -17.63% | -80.32% | |
63 Neutral | $4.67B | 4,881.44 | 6.39% | 4.90% | 8.31% | -99.39% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.71B | 9.40 | 16.24% | 2.91% | -3.93% | -27.37% |
* Consumer Cyclical Sector Average
REYN
Reynolds Consumer Products
23.74
-1.61
-6.35%
GPK
Graphic Packaging
15.65
-10.94
-41.13%
GEF
Greif Class A
70.83
12.99
22.46%
SEE
Sealed Air
41.61
8.43
25.41%
SLGN
Silgan Holdings
43.04
-7.98
-15.64%
SON
Sonoco Products
47.50
2.66
5.93%
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.