| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | 13.3x | 17.8x | Top tier | |
Growth | 32 | 2.7% | 7.1% | Bottom tier | |
Quality | 59 | 10.8% | 4.5% | Around median | |
Safety | 65 | 2.5x | 2.6x | Around median | |
Capital Return | 61 | 4.23% | 2.12% | Around median | |
Momentum | 52 | 13.3% | 2.9% | Around median | |
Sentiment | 72 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Reynolds Consumer Products Inc. operates in consumer household products through a portfolio that includes Reynolds Wrap aluminum foil, Reynolds Parchment Paper and Reynolds Kitchens products, trash bags, food storage bags, and tableware products under the Hefty brand, as well as store-brand products. Revenue comes from four main operating units: Reynolds Cooking & Kitchen Essentials, Hefty Waste & Clean-Up, Hefty Home & Tableware, and Hefty Storage & Organization, with performance dependent on pricing, retail sales volume, store distribution, and non-retail sales.
In Q2 fiscal 2026, revenue reached $944 million, up 1% from the comparable period, while adjusted EBITDA reached $171 million, up $8 million, or approximately 5%. This equates to an adjusted margin of approximately 18.1%, while gross margin improved by 200 basis points due to manufacturing and supply chain productivity. Adjusted EPS rose 7% to $0.42, marking, along with adjusted earnings, three consecutive quarters of growth.
The performance mix in Q2 fiscal 2026 varied across units: Hefty Storage & Organization generated record second-quarter revenue and retail volumes grew 8%, Hefty Waste & Clean-Up maintained stable retail volumes despite the loss of some private-label distribution, while foam product volumes in Hefty Home & Tableware remained under pressure. During the first half of fiscal 2026, revenue reached $1.8 billion, up 4%, adjusted EBITDA reached $302 million, up 8%, and operating cash flow increased to $173 million from $147 million. Meanwhile, EDGAR data for Q1 fiscal 2026 showed revenue of $877 million, gross profit of $207 million, and net income of $59 million, equivalent to a gross margin of approximately 23.6%.
Analyst consensus on REYN is neutral, with an average price target of $24.67 and an extremely narrow range of $24 to $25. This average is below the 52-week range high of $27.32 and above its low of $20.44, while the available data do not provide a valid comparable P/E multiple; therefore, the re-rating rationale primarily depends on the sustainability of margin improvement in the face of $400 million in commodity pressures and demand elasticity following the price increases.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Q2 fiscal 2026 revenue reached approximately $944 million, up 1%, while adjusted EBITDA rose approximately 5% to $171 million. Gross margin improved by 200 basis points due to manufacturing and supply chain productivity, more than 12 months after implementation of the automation program. As a result, adjusted EPS rose 7% to $0.42, and adjusted earnings grew for the third consecutive quarter.
Hefty Storage & Organization generated record second-quarter revenue, and retail volumes rose 8% in Q2 fiscal 2026, driven by Hefty-branded and store-brand food bags. Hefty food bag e-commerce sales grew approximately 30% year over year, while Hefty Ultra Strong ranked among the top five best-selling products across all categories during Amazon Prime Day in July 2026. In the trash bag business, distribution increased by a low-double-digit percentage, and both volume and sales grew by two points during the first half of fiscal 2026.
Management raised its net revenue outlook to low-single-digit growth compared with fiscal 2025 revenue of $3.721 billion, from a previous outlook centered on a 1% decline. It maintained the net income and adjusted net income range at $331 to $343 million, and EPS and adjusted EPS at $1.57 to $1.63. It also maintained adjusted EBITDA guidance at $660 to $675 million despite estimated commodity pressures rising to $400 million on an annualized basis.
Automated analysis for informational purposes only — not investment advice.
The company estimated commodity pressures at approximately $400 million on an annualized basis at the end of June 2026, compared with an estimate of $200 million in April 2026. To address this, aluminum price increases were approximately 20 points in each of Q1 and Q2 fiscal 2026, and cost-offsetting price increases for resin-based products began in July 2026. The risk is that these increases could weaken volumes, while management said additional pricing would be a mathematical headwind to the margin rate in the second half.
During the first half of fiscal 2026, the company maintained its shares in aluminum foil and trash bags, while food bags, party cups, parchment paper, and Reynolds Kitchens products gained market share. Management reported that aluminum foil category volumes during the last four weeks of the period discussed on July 29, 2026, declined between 4% and 5%, while retail dollar sales rose by a low-double-digit percentage. The gap between Reynolds Wrap and private-label products also generally remained below one dollar, despite widening slightly during Q2 fiscal 2026.
