CluenexReynolds Consumer Products REYN
Reynolds Consumer Products scores weak on business quality (4.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Reynolds Consumer Products does
Reynolds Consumer Products manufactures household essentials like foil, trash bags, and food storage containers. Retailers purchase these branded goods to stock everyday grocery aisles. Revenue sits at $3.8 billion with steady demand across core categories. Margin expansion efforts gain traction as operational efficiency improves.
- What it does best
Reynolds dominates kitchen foil and waste bags through entrenched retail shelf space. Gross margin sits at 25.1%, trailing peers like Colgate at 60.4% but supporting reliable cash generation. Scale and brand recognition lock out minor competitors from major supermarket distribution.
- The main risk
Input cost volatility threatens profitability if aluminum and resin prices spike. Margin expansion momentum depends entirely on pricing power without volume growth, leaving earnings exposed to consumer trade-downs.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 14.7% with a net margin of 9.1%. Profitability expands via cost actions rather than scale, since revenue growth remains stagnant.
Brand loyalty and retailer relationships form a moderate moat locking in everyday consumers. Gross margin ranks in the 29th percentile of its sector, showing cost pressures limit pricing power.
Revenue grew at 0.7%, reflecting a flat top line. Growth lags far behind sector norms, with historical revenue hovering near $3.7 billion since 2022.
Total debt is $1.6 billion against $147 million in cash, yielding an interest coverage ratio of 6.4x. Free cash flow reaches $320 million, showing stable cash generation getting slightly softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on REYN
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Reynolds Consumer Products scores weak on the Cluenex quality check (4.3 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026, before the open.
See REYN today
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Cite this page: Cluenex, “Reynolds Consumer Products (REYN)”, https://cluenex.com/stocks/reyn/, data as of Oct 10, 2026.