Reynolds Consumer Products, Inc. (REYN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inter Parfums, Inc.

Procter & Gamble Co.

e.l.f. Beauty, Inc.

Kenvue, Inc.

Church & Dwight Co., Inc.

Colgate-Palmolive Co.

Reynolds Consumer Products, Inc.

Kimberly-Clark Corp.

The Estée Lauder Companies, Inc.

The Clorox Co.

Coty, Inc.

Why is Reynolds Consumer Products, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -4.36% of over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 477 MM
ROCE(HY) Lowest at 13.7%
RAW MATERIAL COST(Y) Grown by 6.4% (YoY)

With ROCE of 13.29%, it has a expensive valuation with a 1.60 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.71%, its profits have fallen by -12%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.71% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Reynolds Consumer Products, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Reynolds Consumer Products, Inc.

-10.32%

-0.99

25.71%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.66%

EBIT Growth (5y)

-4.36%

EBIT to Interest (avg)

7.17

Debt to EBITDA (avg)

3.03

Net Debt to Equity (avg)

0.75

Sales to Capital Employed (avg)

0.97

Tax Ratio

21.73%

Dividend Payout Ratio

64.31%

Pledged Shares

Institutional Holding

40.48%

ROCE (avg)

13.79%

ROE (avg)

17.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.99

EV to EBIT

12.06

EV to EBITDA

9.48

EV to Capital Employed

1.60

EV to Sales

1.60

PEG Ratio

Dividend Yield

4.30%

ROCE (Latest)

13.29%

ROE (Latest)

13.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 68.22 %

DEBTORS TURNOVER RATIO(HY)

Highest at 10.41 times

NET SALES(Q)

Highest at USD 1,034 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 477 MM

ROCE(HY)

Lowest at 13.7%

RAW MATERIAL COST(Y)

Grown by 6.4% (YoY

INTEREST(Q)

Highest at USD 23 MM

Here's what is working for Reynolds Consumer Products, Inc.

Net Sales

Highest at USD 1,034 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 68.22 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 10.41 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 35 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Reynolds Consumer Products, Inc.

Operating Cash Flow

Lowest at USD 477 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 23 MM

in the last five periods and Increased by 9.52% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 6.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales