📊 REYN Key Takeaways
Is Reynolds Consumer Products Inc. (REYN) a Good Investment?
Reynolds Consumer Products faces structural headwinds in a mature, commoditized industry with stagnant revenue growth (+0.7% YoY) and accelerating margin compression (net income -14.5% YoY). The combination of poor capital returns (2.6% ROE, 1.2% ROA), tight interest coverage (3.1x), and anemic free cash flow generation (3.1% margin) leaves limited financial flexibility to service $1.5B debt or invest in growth initiatives.
Reynolds shows solid fundamentals with double‑digit operating margin, robust free cash flow, and moderate leverage supported by strong interest coverage. However, flat revenue and a double‑digit YoY decline in net income/EPS signal margin pressure and limited growth visibility, warranting a neutral stance until profitability trends reaccelerate.
Why Buy Reynolds Consumer Products Inc. Stock? REYN Key Strengths
- Positive operating cash flow of $71M demonstrates underlying business viability
- Moderate leverage with debt-to-equity ratio of 0.68x provides some balance sheet flexibility
- Currently profitable with $59M net income and $27M free cash flow
- Consistent free cash flow and cash conversion (8.5% FCF margin)
- Healthy balance sheet with moderate leverage and 15.7x interest coverage
- Defensive consumer staples portfolio supporting stable demand and 10.6% operating margin
REYN Stock Risks: Reynolds Consumer Products Inc. Investment Risks
- Revenue stagnation at 0.7% growth with no organic growth momentum in a low-margin sector
- Declining profitability: net income contracted 14.5% YoY despite flat revenue, signaling margin erosion
- Dangerously tight interest coverage at 3.1x leaves minimal buffer for earnings deterioration or rate increases
- Extremely low capital returns (2.6% ROE, 1.2% ROA) indicate poor deployment of shareholder capital
- Insufficient free cash flow generation relative to debt load limits refinancing optionality and financial flexibility
- Commodity input volatility (resin, aluminum) compressing margins
- Muted top-line growth with potential mix and private-label competition pressure
- Inventory-heavy working capital could weigh on cash conversion in a slowdown
Key Metrics to Watch
- Quarterly revenue growth trajectory - must show acceleration from current 0.7% to indicate stabilization
- Operating and net margin trends - critical to identify bottom or continued compression
- Free cash flow and debt reduction progress - essential metric given $1.5B leverage and 3.1x coverage ratio
- Interest coverage ratio deterioration - any movement below 3.0x signals elevated refinancing risk
- Gross and operating margin trajectory
- Organic revenue growth (volume vs. price/mix)
Reynolds Consumer Products Inc. (REYN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility.
REYN Profit Margin, ROE & Profitability Analysis
REYN vs Materials Sector: How Reynolds Consumer Products Inc. Compares
How Reynolds Consumer Products Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Reynolds Consumer Products Inc. Stock Overvalued? REYN Valuation Analysis 2026
Based on fundamental analysis, Reynolds Consumer Products Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Reynolds Consumer Products Inc. Balance Sheet: REYN Debt, Cash & Liquidity
REYN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Reynolds Consumer Products Inc.'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
REYN Revenue Growth, EPS Growth & YoY Performance
REYN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $818.0M | $31.0M | $0.15 |
| Q3 2025 | $910.0M | $31.0M | $0.38 |
| Q2 2025 | $930.0M | $31.0M | $0.35 |
| Q1 2025 | $818.0M | $31.0M | $0.15 |
| Q3 2024 | $910.0M | $17.0M | $0.37 |
| Q2 2024 | $930.0M | $17.0M | $0.32 |
| Q1 2023 | $818.0M | $17.0M | $0.08 |
| Q3 2022 | $876.0M | $48.0M | $0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Reynolds Consumer Products Inc. Dividends, Buybacks & Capital Allocation
REYN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Reynolds Consumer Products Inc. (CIK: 0001786431)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REYN
What is the AI rating for REYN?
Reynolds Consumer Products Inc. (REYN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are REYN's key strengths?
Claude: Positive operating cash flow of $71M demonstrates underlying business viability. Moderate leverage with debt-to-equity ratio of 0.68x provides some balance sheet flexibility. ChatGPT: Consistent free cash flow and cash conversion (8.5% FCF margin). Healthy balance sheet with moderate leverage and 15.7x interest coverage.
What are the risks of investing in REYN?
Claude: Revenue stagnation at 0.7% growth with no organic growth momentum in a low-margin sector. Declining profitability: net income contracted 14.5% YoY despite flat revenue, signaling margin erosion. ChatGPT: Commodity input volatility (resin, aluminum) compressing margins. Muted top-line growth with potential mix and private-label competition pressure.
What is REYN's revenue and growth?
Reynolds Consumer Products Inc. reported revenue of $877.0M.
Does REYN pay dividends?
Reynolds Consumer Products Inc. pays dividends, with $48.0M distributed to shareholders in the trailing twelve months.
Where can I find REYN SEC filings?
Official SEC filings for Reynolds Consumer Products Inc. (CIK: 0001786431) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REYN's EPS?
Reynolds Consumer Products Inc. has a diluted EPS of $0.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is REYN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Reynolds Consumer Products Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is REYN stock overvalued or undervalued?
Valuation metrics for REYN: ROE of 2.6% (sector avg: 14%), net margin of 6.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy REYN stock in 2026?
Our dual AI analysis gives Reynolds Consumer Products Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is REYN's free cash flow?
Reynolds Consumer Products Inc.'s operating cash flow is $71.0M, with capital expenditures of $44.0M. FCF margin is 3.1%.
How does REYN compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.7% (avg: 10%), ROE 2.6% (avg: 14%), current ratio 1.79 (avg: 1.6).