Reynolds Consumer Products Inc. Common Stock (REYN)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $291 million in annual free cash flow (6.6% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.7% above cost of capital
• Attractive 4.4% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Reynolds Consumer Products Inc. Common Stock is a small-cap consumer cyclical company valued at $4.4 billion. The business generates $3.7 billion in annual revenue with a 3.2% net margin and $291 million in free cash flow. From a quality standpoint, Reynolds shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.7 warrants caution. On valuation, the stock is attractively valued at 14.6x earnings, with trades above its Graham Number with a negative 13% margin. Growth dynamics show revenue growing at 1.4% and profit growth of -3.3%. The 4.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Reynolds's consistent 14% ROE at just 15x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $291 million in annual free cash flow (6.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer