Reynolds Consumer Products: Faces Volume Growth And Profitability Headwinds
Summary
- Reynolds Consumer Products' topline revenue growth is driven by price increases, which may not continue.
- The decline in sales volumes coupled with high inventory levels is worrying.
- Reynolds' high debt level is a concern.
- The company's dividend is not a reason to buy the stock at current prices.
- It is a concern that Reynolds trades at a higher valuation than Apple or Alphabet.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of REYN, VOO, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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