Reynolds Consumer Products Inc. (REYN) AI Stock Analysis
REYN AI stock analysis summary
AI ResearchReynolds Consumer Products Inc. manufactures household staples including Reynolds Wrap and Hefty trash bags, generating $3.79B in trailing twelve-month revenue. The company trades at a forward P/E of 13.0x while offering a 4.03% dividend yield backed by a 53.8% payout ratio. Its revenue has expanded at a 5-year CAGR of 2.7%, though debt remains elevated with net debt of $1.58B as of June 30, 2026.
- Market cap
- $4.81B
- Revenue (TTM)
- $3.79B
- P/E
- 13.9x fwd 13.0x
- 1Y return
- 0.9% S&P 500 16.8%
- Avg. target
- $26.29 15.2% vs last close
Bull case
- Reynolds Consumer Products generated $316.0M in free cash flow in FY2025, comfortably supporting its $192.0M in annual dividend payments.
- Quarterly earnings expanded 21.0% year over year in the period ended June 30, 2026.
- Valuation multiples remain modest, with a forward P/E of 13.0x sitting below the US-listed Consumer Cyclical peer median of 14.1x.
Bear case
- Revenue growth has been subdued, exhibiting a 5-year CAGR of 2.7% and a modest 0.7% expansion in FY2025.
- Net debt remains substantial at $1.58B relative to just $66.0M in cash and short-term investments as of June 30, 2026.
- Over the past 5 years, the stock produced a return of -2.6%, substantially underperforming the S&P 500 return of 83.0%.
What Reynolds Consumer Products does
Headquartered in Lake Forest, Illinois, Reynolds Consumer Products Inc. manufactures and distributes household essentials across cooking, waste management, storage, and tableware categories. The company operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. Its product lineup includes iconic brands such as Reynolds Wrap, Reynolds KITCHENS, E-Z Foil, and Hefty Ultra Strong, alongside international presence under the ALCAN and Diamond brands. Presto Products specializes in store brand food storage bags, trash bags, reusable containers, and plastic wrap sold across grocery, mass merchant, and retail channels.
Growth and profitability
Between FY2021 and FY2025, Reynolds Consumer Products delivered a 5-year revenue CAGR of 2.7%. Annual revenue moved from $3.56B in FY2021 to a peak of $3.82B in FY2022 before settling at $3.72B in FY2025, up 0.7% year over year. Net income reached $301.0M in FY2025 with an 8.1% net margin, compared to $352.0M and a 9.5% net margin in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 0.6% year over year, while quarterly earnings grew 21.0% year over year. Operating margin over the trailing twelve months stood at 14.6%, outpacing the FY2025 annual rate of 13.2%.
Balance sheet and cash flow
As of June 30, 2026, Reynolds Consumer Products held $66.0M in cash and short-term investments against total debt of $1.65B, resulting in net debt of $1.58B. Shareholders equity stood at $2.31B, yielding a debt-to-equity ratio of 0.71 and a current ratio of 1.80. In FY2025, operating cash flow reached $477.0M and free cash flow was $316.0M. Capital allocation in FY2025 included $161.0M in capital expenditures and $192.0M in dividends paid, while share count increased 1.0% over 5 years.
Valuation and performance
With a market cap of $4.81B and enterprise value of $6.20B, REYN trades at a trailing P/E of 13.9x and a forward P/E of 13.0x. These multiples compare to a trailing P/E of 18.0x and a forward P/E of 14.1x for the median of its US-listed Consumer Cyclical peers. The stock's EV-to-EBITDA stands at 9.0x versus the peer median of 11.1x, while its price-to-sales ratio of 1.3x is higher than the peer median of 0.7x. Over the past 1 year, REYN shares gained 0.9%, trailing the S&P 500 (SPY) return of 16.8%.
REYN dividend
The company pays an annual forward dividend of $0.92 per share, representing a 4.03% dividend yield. Dividends are distributed on a quarterly frequency and reflect a payout ratio of 53.8%. Reynolds Consumer Products has paid dividends for 7 consecutive years, achieving an annualized 5-year dividend growth rate of 9.3%. The most recent ex-dividend date was August 17, 2026.
What analysts expect
Wall Street coverage includes 2 Strong Buy and 5 Hold ratings among 7 analysts. The mean price target is $26.29, representing a 15.2% premium over the last close of $22.82. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $3.80B and EPS of $1.61, indicating an EPS decline of 1.7%. For the following fiscal year, analysts forecast revenue of $3.87B and EPS of $1.71. Reynolds Consumer Products beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 4, 2026.
Key risks and what to watch
- A high debt load of $1.65B creates ongoing interest obligations and limits balance sheet flexibility.
- Short interest represents 13.1% of the float, reflecting meaningful negative sentiment in the market.
- Full-year FY2026 consensus estimates project EPS will decline 1.7% to $1.61.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this REYN AI stock analysis
This page is an AI-written research summary of Reynolds Consumer Products Inc. (REYN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: REYN income statement, REYN balance sheet, REYN key metrics, REYN analyst forecast, REYN chart. See the REYN stock overview for the latest quote and news.
REYN AI stock analysis FAQ
What is Reynolds Consumer Products' dividend yield?
The stock has a forward annual dividend yield of 4.03%, paying $0.92 per share annually on a quarterly schedule.
When is Reynolds Consumer Products' next earnings report?
The company is scheduled to report earnings next on November 4, 2026.
How much debt does REYN hold?
As of June 30, 2026, the company carried total debt of $1.65B and cash of $66.0M, resulting in net debt of $1.58B.
Who owns the majority of REYN shares?
Insiders hold 74.1% of the company's shares, while institutional investors account for 32.0%.