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1. Company Snapshot

1.a. Company Description

Reynolds Consumer Products Inc.produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally.It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products.


The Reynolds Cooking & Baking segment produces foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and E-Z Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally.The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands.This segment also provides a suite of products, including blue and clear recycling bags, compostable bags, bags made from recycled materials, and the Hefty EnergyBag Program.


The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand.The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories.Reynolds Consumer Products Inc.


offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers.The company was founded in 1947 and is headquartered in Lake Forest, Illinois.Reynolds Consumer Products Inc.


operates as a subsidiary of Packaging Finance Limited.

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1.b. Last Insights on REYN

Reynolds Consumer Products' recent performance was positively driven by strong Q3 earnings, beating estimates with $0.42 per share versus the expected $0.39 per share. The company's four business units delivered improved results, driven by share gains in most categories. Its agile organization and implemented strategies are yielding results. Reynolds Consumer Products received a consensus recommendation of "Hold" from nine analysts, with seven rating it a hold and two assigning a buy recommendation (Marketbeat Ratings). The company reported solid Q3 financial results.

1.c. Company Highlights

2. Hefty's Resilience: A Mixed Bag of Results

The company's third-quarter financial performance was marked by a 1% increase in retail revenue, with retail volume growing 1% excluding foam products. Adjusted EBITDA was $168 million, down from $171 million in the year-ago period. The actual EPS came out at $0.3755, slightly below estimates of $0.39. Revenue growth was muted, with net revenues expected to be flat to down 1% compared to 2024 net revenues of $3.7 billion. Adjusted EPS is expected to be $1.60 to $1.64.

Publication Date: Oct -30

📋 Highlights
  • Promotional Performance:: Hefty waste bags outperformed category by 10 pts, +9% retail takeaways; Presto food bags grew volume 9%.
  • Consumer Sentiment:: Inflation above 2%, confidence down 3-4 pts in Q4, 10 pts decline YTD; cautious outlook amid labor market cooling.
  • Store Brand Risks:: Retailers may boost private-label bids in economic uncertainty; company monitors and adapts strategies.
  • Financials Q3:: Retail revenue +1% (excluding foam), non-retail revenue +$13M; adjusted EBITDA $168M vs. $171M prior year.

Segment Performance

The Hefty waste and storage segment was a standout, with impressive volume growth and profitability, making it the highest profitability among the four divisions. As noted by Scott Huckins, the company's products and execution, as well as their supply chain team keeping products in stock, contributed to this success. The tableware segment, however, faced headwinds, with 80% of the decline due to foam headwinds, but the company managed to increase profits by 10% despite volume declines.

Promotional Effectiveness and Consumer Behavior

The company has invested in building a robust revenue growth management capability to optimize trade and promotional dollars. According to Scott Huckins, the company is pleased with the progression of gross profit from quarter-to-quarter and expects some continuation of that trend. Consumer behavior remains a concern, with inflation above the Fed's target and a decline in consumer sentiment. However, the company's portfolio is well-positioned to serve both brand shoppers and value-oriented consumers.

Valuation and Outlook

With a P/E Ratio of 17.26 and an EV/EBITDA of 10.75, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 1.9%. The company's ROE of 14.15% and ROIC of 8.68% indicate a decent return on equity and invested capital. The Dividend Yield of 3.69% provides a relatively stable source of return. Overall, the company's resilience in a challenging environment is a positive sign, and its progress toward its initiatives is encouraging.

3. NewsRoom

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Reynolds Consumer Products Inc. $REYN Shares Purchased by Edgestream Partners L.P.

Dec -03

Source: defenseworld.net

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Head to Head Comparison: Reynolds Consumer Products (NASDAQ:REYN) and Real Brands (OTCMKTS:RLBD)

Nov -19

Source: defenseworld.net

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The London Company SMID Cap Vs. Russell 2500 Q3 2025 Sector Influence And Trades

Nov -05

Source: seekingalpha.com

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Best Income Stocks to Buy for Nov. 5

Nov -05

Source: zacks.com

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Reynolds Consumer Products Inc. (NASDAQ:REYN) Given Consensus Recommendation of “Hold” by Brokerages

Oct -31

Source: defenseworld.net

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Reynolds Consumer Products (REYN) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -29

Source: zacks.com

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Reynolds Consumer Products Inc. (REYN) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Reynolds Consumer Products (REYN) Surpasses Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.94%)

6. Segments

Reynolds Cooking and Baking

Expected Growth: 1.0%

Reynolds Cooking and Baking's 1.0% growth is driven by increasing demand for convenient and sustainable cooking solutions, steady growth in the baking industry, and the company's focus on product innovation and expansion into new markets, such as e-commerce and meal kit delivery services.

Hefty Tableware

Expected Growth: 0.9%

Hefty Tableware's 0.9% growth is driven by increasing demand for sustainable and eco-friendly products, Reynolds Consumer Products Inc.'s strong brand recognition, and strategic partnerships with major retailers. Additionally, the company's focus on product innovation, such as compostable and recyclable tableware, resonates with environmentally conscious consumers, contributing to the segment's growth.

Hefty Waste and Storage

Expected Growth: 0.8%

Hefty Waste and Storage from Reynolds Consumer Products Inc. growth of 0.8 is driven by increasing consumer demand for convenient and sustainable waste management solutions, coupled with the company's strategic expansion into new markets and product lines, as well as its focus on innovation and operational efficiency.

Presto Products

Expected Growth: 1.1%

Presto Products' 1.1% growth is driven by increasing demand for convenient food storage solutions, rising popularity of meal prep and online grocery shopping, and Reynolds Consumer Products Inc.'s strategic investments in e-commerce and product innovation, particularly in the reusable container segment.

Unallocated

Expected Growth: 0.7%

Reynolds Consumer Products Inc.'s unallocated segment growth of 0.7% is driven by increasing demand for sustainable packaging, cost savings from operational efficiencies, and strategic pricing initiatives. Additionally, the company's focus on innovation and product diversification has contributed to the growth, despite headwinds from raw material inflation and supply chain disruptions.

7. Detailed Products

Hefty Trash Bags

Heavy-duty trash bags designed for household and industrial use, offering superior strength and leak resistance.

Hefty Storage Bags

Durable storage bags for organizing and protecting items during moves, storage, and travel.

Reynolds Wrap Aluminum Foil

Heavy-duty aluminum foil for cooking, wrapping, and storing food, offering superior heat resistance and durability.

Reynolds Parchment Paper

Non-stick parchment paper for baking, roasting, and cooking, offering easy food release and cleanup.

Cut-Rite Wax Paper

Wax-coated paper for wrapping food, covering surfaces, and protecting against moisture.

8. Reynolds Consumer Products Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Reynolds Consumer Products Inc. operates in a market with moderate threat of substitutes. While there are some alternatives to its products, they are not significantly cheaper or better, limiting the threat.

Bargaining Power Of Customers

Reynolds Consumer Products Inc. has a diverse customer base, which limits the bargaining power of individual customers. Additionally, the company's products are not highly customized, reducing the dependence on specific customers.

Bargaining Power Of Suppliers

Reynolds Consumer Products Inc. relies on a few large suppliers for its raw materials. While the company has some bargaining power due to its size, the suppliers also have some leverage, resulting in a moderate level of bargaining power.

Threat Of New Entrants

The market for consumer products has high barriers to entry, including significant capital requirements and established distribution networks. This limits the threat of new entrants to Reynolds Consumer Products Inc.

Intensity Of Rivalry

The market for consumer products is highly competitive, with several established players competing for market share. Reynolds Consumer Products Inc. faces intense competition from companies like Procter & Gamble and Kimberly-Clark.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.80%
Debt Cost 6.33%
Equity Weight 51.20%
Equity Cost 6.33%
WACC 6.33%
Leverage 95.31%

11. Quality Control: Reynolds Consumer Products Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sonoco

A-Score: 5.9/10

Value: 7.2

Growth: 5.0

Quality: 5.6

Yield: 8.0

Momentum: 1.5

Volatility: 8.3

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PCA

A-Score: 5.6/10

Value: 3.8

Growth: 4.7

Quality: 6.0

Yield: 6.0

Momentum: 4.5

Volatility: 8.7

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Greif

A-Score: 5.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 7.0

Momentum: 4.0

Volatility: 7.0

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Reynolds Consumer Products

A-Score: 5.5/10

Value: 5.0

Growth: 5.0

Quality: 5.5

Yield: 7.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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Graphic Packaging

A-Score: 5.3/10

Value: 8.0

Growth: 6.4

Quality: 4.2

Yield: 4.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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WestRock

A-Score: 3.4/10

Value: 4.9

Growth: 2.7

Quality: 2.7

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.01$

Current Price

24.01$

Potential

-0.00%

Expected Cash-Flows