Reynolds Consumer Products Inc. (REYN)
Valuation Overview•Is Reynolds Consumer Products Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 52/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
REYN demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-0.8% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 13.6%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $877.0M | +0.7% | -0.8% | +2.7% | — | |
| EBITDA | $98.0M | — | +5.7% | — | — | |
| Net Income | $59.0M | -14.5% | +5.3% | — | — | |
| EPS (Diluted) | $0.28 | -14.4% | +5.2% | -4.3% | — | |
| Free Cash Flow | $27.0M | -14.4% | +51.4% | +12.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 24.7% | 25.4% | 23.8% | 26.0% |
| Operating Margin | 13.6% | 13.9% | 13.2% | 15.0% |
| Net Margin | 8.7% | 8.5% | 8.3% | 8.4% |
| FCF Margin | 8.6% | 11.0% | 8.0% | 9.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.25 | $0.28 | +12.0% | ||
| Q1'26 | $0.60 | $0.59 | -1.7% | ||
| Q4'25 | $0.39 | $0.42 | +7.7% | ||
| Q3'25 | $0.38 | $0.39 | +2.6% | ||
| Q2'25 | $0.23 | $0.23 | +0.0% | ||
| Q1'25 | $0.58 | $0.58 | +0.0% | ||
| Q4'24 | $0.42 | $0.41 | -2.4% | ||
| Q3'24 | $0.44 | $0.46 | +4.5% |
Total return is +17.7% (1Y), lagging the benchmark by -7.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +5.5% | -3.8% | — |
| 1Y | +17.7% | -7.3% | +4.4% |
| 3YCAGR | -1.7% | -21.9% | +9.8% |
| 5YCAGR | -0.9% | -13.8% | +15.4% |
| 10YCAGR | +0.3% | -13.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Reynolds Consumer Products Inc. (REYN) valuation, health, and returns.
Reynolds Consumer Products Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +34.0% upside to DCF intrinsic value of $31.98)
Reynolds Consumer Products Inc. has multiple valuation anchors: DCF Intrinsic Value: $31.98 | Peer Relative Fair Value: $23.21 | Wall Street Analyst Target: $24.00 (implying +0.5% upside). A convergence of these signals offers higher conviction.
Reynolds Consumer Products Inc. displays fair financial health with a composite quality score of 52/100, supported by a Altman Z-Score of 2.1 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 9.6%.
Reynolds Consumer Products Inc. pays a 3.8% dividend yield, covered by a 64% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Reynolds Consumer Products Inc.'s current growth trajectory is Stable. The company achieved +0.7% 1Y revenue growth and -14.4% 1Y EPS growth, compared to its 3Y revenue CAGR of -0.8%.
Wall Street consensus is Hold based on 12 analysts, beating EPS expectations in 58% of recent quarters with a 1-quarter streak. The consensus price target represents a +0.5% change from current levels.
Investment risks for Reynolds Consumer Products Inc. include: -19.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.33x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.