Reynolds Consumer Products (REYN)
NASDAQ:REYN
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Reynolds Consumer Products
(NASDAQ:REYN)
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Rating:60Neutral
Price Target:
$25.00
â–²(18.93% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Reynolds Consumer Products (REYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.40B
Dividend Yield3.97%
Average Volume (3M)948.04K
Price to Earnings (P/E)16.0
Beta (1Y)0.20
Revenue Growth0.76%
EPS Growth-17.69%
CountryUS
Employees6,400
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.59
Shares Outstanding210,343,550
10 Day Avg. Volume1,123,724
30 Day Avg. Volume948,038
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 Cap1.37
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit6.61
Enterprise Value/Ebitda9.84
Forecast
1Y Price Target
$26.00Price Target Upside23.69% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.72
Revenue Forecast (FY)$3.76B
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 & Stora...
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...
Reynolds Consumer Products Key Performance Indicators (KPIs)
Reynolds Consumer Products Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call balanced clear operational progress and financial discipline (share gains, improved service levels, strong free cash flow, reduced leverage, RGM and pricing success, and Q4 EBITDA growth) against persistent category and input-cost headwinds (pronounced foam declines, aluminum-driven foil elasticity risk, modest full-year EBITDA decline, and embedded headwinds in 2026 guidance). Management communicated confidence in their strategy, actionable plans (productivity, automation, RGM), and financial flexibility to invest, while acknowledging near-term volume and margin pressures.Positive Updates
Quarterly Revenue Growth
Net revenues of $1.03 billion in Q4 2025, representing 1% growth versus $1.02 billion in Q4 2024.
Negative Updates
Foam Category Decline
Foam category volumes were down approximately 14% in 2025 and remain a material headwind; management expects about half that rate of decline in 2026 (~7%). Foam pressure weighed heavily on Hefty Tableware top-line performance.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Net revenues of $1.03 billion in Q4 2025, representing 1% growth versus $1.02 billion in Q4 2024.
Read all positive updates
Company Guidance
Reynolds guided full‑year 2026 net revenues down 3% to up 1% vs 2025 net revenues of $3.7B, with retail branded sales expected at or above category performance (category ~‑2%), non‑retail revenue flat, and full‑year adjusted EBITDA of $660–675M (roughly flat YoY versus $670M in 2025); management expects net income / adjusted net income of $331–343M, EPS / adjusted EPS of $1.57–1.63, an effective tax rate of ~24.5%, interest expense and D&A broadly in line with 2025, SG&A to be up versus 2025, and CapEx in the low $200M range as automation projects continue; Q1 2026 guidance is net revenues down 3% to up 1% vs Q1’25 revenue of $818M, net income / adjusted net income $49–53M, EPS / adj EPS $0.23–0.25 (vs $0.23 in Q1’25), and Q1 adjusted EBITDA $120–125M (vs $117M in Q1’25). The guide assumes continued pricing actions (Q4 pricing ~11 points with Q4 retail volumes down ~2 points), commodity pressure (notably higher aluminum), and that the company enters 2026 after exiting 2025 with $3.7B revenue, $670M adjusted EBITDA, $1.66 adjusted EPS, $316M free cash flow and net debt leverage of ~2.1x.Reynolds Consumer Products Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
42
Neutral
Cash Flow
71
Positive
| 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
Negative
21.02
Price Trends
23.00
Negative
23.40
Negative
22.78
Negative
Market Momentum
-0.72
Positive
30.30
Neutral
16.77
Positive
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 21.02 is below the 20-day moving average (MA) of 22.33, below the 50-day MA of 23.00, and below the 200-day MA of 22.78, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 30.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $5.11B | 10.96 | 32.44% | 4.33% | 8.31% | -99.39% | |
65 Neutral | $3.37B | 5.59 | 2.08% | 3.19% | -17.63% | -80.32% | |
63 Neutral | $4.06B | 14.78 | 13.03% | 1.97% | 11.10% | 6.54% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.40B | 16.01 | 13.83% | 3.97% | 0.76% | -17.69% | |
60 Neutral | $6.18B | 12.04 | 48.39% | 1.94% | -1.22% | -0.76% | |
56 Neutral | $2.66B | 10.06 | 13.67% | 2.91% | -3.93% | -27.37% |
* Consumer Cyclical Sector Average
REYN
Reynolds Consumer Products
21.02
-1.47
-6.54%
GPK
Graphic Packaging
8.98
-16.08
-64.16%
GEF
Greif Class A
66.25
12.50
23.25%
SEE
Sealed Air
41.95
13.01
44.98%
SLGN
Silgan Holdings
38.96
-11.16
-22.27%
SON
Sonoco Products
52.53
7.51
16.69%
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.