Reynolds Consumer Gross Profit vs. Price To Earning

REYN Stock  USD 27.69  0.05  0.18%   
Considering Reynolds Consumer's profitability and operating efficiency indicators, Reynolds Consumer's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Reynolds Consumer's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2018-12-31
Previous Quarter
256 M
Current Value
239 M
Quarterly Volatility
39.7 M
 
Covid
At this time, Reynolds Consumer's Price To Sales Ratio is very stable compared to the past year. As of the 1st of December 2024, EV To Sales is likely to grow to 3.17, while Days Sales Outstanding is likely to drop 18.31. At this time, Reynolds Consumer's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 1st of December 2024, Interest Income is likely to grow to about 46.5 M, while Operating Income is likely to drop about 405.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.2508
Fairly Up
Slightly volatile
Net Profit Margin0.06090.0793
Way Down
Slightly volatile
Operating Profit Margin0.180.1363
Significantly Up
Slightly volatile
Pretax Profit Margin0.07650.1046
Way Down
Slightly volatile
Return On Assets0.04470.0623
Way Down
Pretty Stable
For Reynolds Consumer profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reynolds Consumer to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reynolds Consumer Products utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reynolds Consumer's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reynolds Consumer Products over time as well as its relative position and ranking within its peers.
  

Reynolds Consumer's Revenue Breakdown by Earning Segment

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Is Household Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Reynolds Consumer. If investors know Reynolds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Reynolds Consumer listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.106
Dividend Share
0.92
Earnings Share
1.75
Revenue Per Share
17.522
Quarterly Revenue Growth
(0.03)
The market value of Reynolds Consumer is measured differently than its book value, which is the value of Reynolds that is recorded on the company's balance sheet. Investors also form their own opinion of Reynolds Consumer's value that differs from its market value or its book value, called intrinsic value, which is Reynolds Consumer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Reynolds Consumer's market value can be influenced by many factors that don't directly affect Reynolds Consumer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Reynolds Consumer's value and its price as these two are different measures arrived at by different means. Investors typically determine if Reynolds Consumer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reynolds Consumer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Reynolds Consumer Price To Earning vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Reynolds Consumer's current stock value. Our valuation model uses many indicators to compare Reynolds Consumer value to that of its competitors to determine the firm's financial worth.
Reynolds Consumer Products is currently regarded as top stock in gross profit category among its peers. It also is currently regarded as top stock in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for Reynolds Consumer Products is about  38,170,192 . At this time, Reynolds Consumer's Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Reynolds Consumer's earnings, one of the primary drivers of an investment's value.

Reynolds Price To Earning vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Reynolds Consumer

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
776 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Reynolds Consumer

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
20.33 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Reynolds Price To Earning Comparison

Reynolds Consumer is currently under evaluation in price to earning category among its peers.

Reynolds Consumer Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Reynolds Consumer, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reynolds Consumer will eventually generate negative long term returns. The profitability progress is the general direction of Reynolds Consumer's change in net profit over the period of time. It can combine multiple indicators of Reynolds Consumer, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income50 M52.5 M
Interest Income29 M46.5 M
Operating Income512 M405.4 M
Income Before Tax393 M326.5 M
Net Income Applicable To Common Shares296.7 M246.8 M
Net Income298 M278.4 M
Income Tax Expense-95 M-90.2 M
Net Interest Income-119 M-125 M
Net Income From Continuing Ops267 M274.2 M
Total Other Income Expense Net-119 M-125 M
Change To Netincome5.8 MM
Net Income Per Share 1.42  0.98 
Income Quality 2.16  2.19 
Net Income Per E B T 0.76  0.89 

Reynolds Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Reynolds Consumer. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Reynolds Consumer position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Reynolds Consumer's important profitability drivers and their relationship over time.

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When determining whether Reynolds Consumer offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Reynolds Consumer's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Reynolds Consumer Products Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Reynolds Consumer Products Stock:
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You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
To fully project Reynolds Consumer's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reynolds Consumer at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Reynolds Consumer's income statement, its balance sheet, and the statement of cash flows.
Potential Reynolds Consumer investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Reynolds Consumer investors may work on each financial statement separately, they are all related. The changes in Reynolds Consumer's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Reynolds Consumer's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.