Reynolds Consumer Products Inc. Common Stock (REYN)

Slow Grower

FairStock Score: 59/100 — STEADY

Key Financials

Current Price$23.02
Market Cap$4.9B
P/E Ratio14.12
ROE15.43%
Dividend Yield4.16%
SectorConsumer Cyclical

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable brands, honest accounting, and a price that leaves room for error. Reynolds owns Reynolds and Hefty, names consumers trust for foil, waste bags, and tableware; that repeat-purchase habit is a modest moat, though packaging remains competitive and private label is always at the door. The financials are mixed. In fiscal 2025, the year ended 2025-12-31, revenue was $3.7B, net income $301M, diluted EPS $1.43, down from fiscal 2024, the year ended 2024-12-31, when revenue was $3.7B, net income $352M, diluted EPS $1.67. In fiscal 2023, the year ended 2023-12-31, revenue was $3.8B, net income $298M, diluted EPS $1.42. FairStock's Lynch category calls it a SLOW GROWER — Shrinking, with profit down -3.7% a year over five years and revenue up 3.4%. Yet there are encouraging signs: in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $877M, net income $59M, diluted EPS $0.28, versus fiscal Q1 2025, the quarter ended 2025-03-31, revenue $818M, net income $31M, diluted EPS $0.15. Cash flow is real: TTM free cash flow is $320M, a 6.9% FCF yield, supporting a 4.16% dividend. The Piotroski F-Score is 8/9, and ROE is 15.43%, but ROCE is only 6.98%, D/E is 0.71, and Altman Z is 1.64. Valuation isn't demanding: at the 2026-10-13 close of $22.08, FairStock calculates P/E 13.55, P/B 2.01, EV/EBITDA 9.09, PEG 0.62. However, Graham Number is $20.05, leaving a negative margin of safety of -10.12%. I'd call it a fair-to-full price for a slow-growing, leveraged staple, not a bargain.

In plain English: Reynolds Consumer Products makes everyday household items such as Reynolds aluminum foil and Hefty trash bags, storage bags, and tableware. The business is steady and produces cash, but growth has been slow: in fiscal 2025, the year ended 2025-12-31, sales were about flat versus fiscal 2024, the year ended 2024-12-31, while profit and profit per share declined. At the 2026-10-13 closing price of $22.08, the shares look roughly fair to slightly expensive relative to the company's profits and net assets, though the dividend yield is decent.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer