Reynolds Consumer Profitability Analysis
| REYN Stock | USD 27.76 0.15 0.54% |
Net Income | First Reported 2018-12-31 | Previous Quarter 97 M | Current Value 86 M | Quarterly Volatility 31.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.3 | 0.2508 |
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| Net Profit Margin | 0.0609 | 0.0793 |
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| Operating Profit Margin | 0.18 | 0.1363 |
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| Pretax Profit Margin | 0.0765 | 0.1046 |
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| Return On Assets | 0.0447 | 0.0623 |
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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 |
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 Return On Asset vs. Return On Equity 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 return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 0.40 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Reynolds Consumer Products is roughly 2.51 . At this time, Reynolds Consumer's Return On Equity 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 Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Reynolds Consumer |
| = | 0.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Reynolds Consumer |
| = | 0.0742 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Reynolds Return On Asset Comparison
Reynolds Consumer is currently under evaluation in return on asset 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 50 M | 52.5 M | |
| Interest Income | 29 M | 46.5 M | |
| Operating Income | 512 M | 405.4 M | |
| Income Before Tax | 393 M | 326.5 M | |
| Net Income Applicable To Common Shares | 296.7 M | 246.8 M | |
| Net Income | 298 M | 278.4 M | |
| Income Tax Expense | -95 M | -90.2 M | |
| Net Interest Income | -119 M | -125 M | |
| Net Income From Continuing Ops | 267 M | 274.2 M | |
| Total Other Income Expense Net | -119 M | -125 M | |
| Change To Netincome | 5.8 M | 6 M | |
| 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.
Reynolds Consumer Profitability Trends
Reynolds Consumer profitability trend refers to the progression of profit or loss within a business. An upward trend means that Reynolds Consumer's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Reynolds Consumer's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Reynolds Consumer Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Reynolds Consumer different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Reynolds Consumer in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Reynolds Consumer's future profitability.
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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.