Growth Analysis of Reynolds American Inc (NYSE:RAI)


Quarterly Sales and EPS Roundup:

Reynolds American Inc (NYSE:RAI) reported sales (ttm) of 12.37 Billion, whereas, 8 number of analysts estimated the mean sale of 3148.37 million. The analysts estimated sales for the higher end at 3251 million and lower end at 3071.83 million while the year ago reported sale was 3114.26 million.

7 number of analysts have estimated the sales of the company for the quarter ending Feb 9, 2017- Feb 13, 2017, analysts estimated mean sale target of 3023.55 million while high and low sale targets are estimated at 3075.33 million and 2953 million respectively.

Reynolds American Inc (NYSE:RAI) reported earning per shares for the quarter ending Oct 19 BMO at 0.61, whereas, 11 number of analysts estimated the mean EPS at 0.6. The analysts estimated EPS for the higher end at 0.62 and lower end at 0.58 while the year ago reported earnings per share was 0.6.

The company has mean EPS estimate of 0.58 reported by 10 number of analyst for the quarter ending Feb 9, 2017- Feb 13, 2017. The analysts estimated mean EPS at 0.58 while the high and low EPS estimate stand at 0.63 and 0.55 respectively. In contrast to the year ago quarter EPS was at 0.55. EPS long term mean growth rate estimated by 3 analysts is at 11.17%, whereas, the high and low Long term growth rate estimated at 12.1 and 10.

Valuation Ratios of Reynolds American Inc (NYSE:RAI) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Reynolds American Inc (NYSE:RAI). These ratios are important while doing valuation of the company or the shares of the company.

Reynolds American Inc (NYSE:RAI) currently has P/E (Price to Earnings) ratio of 14.1 while the company’s industry has 35.73 P/E and the sector P/E is 39. Similarly, the company’s last 5 years high P/E ratio is 23.79 and low P/E is 15.92, whereas, the industry’s and sector’s  high P/E for the past year is 38.66 and 41.84 respectively and low P/E ratio for the last 5 years is 20.43 for the industry and 24.27 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, 83 has Beta of 0.35 while its industry and Sector’s beta remains at 0.82 and 0.65 respectively.

Price to Sale ratio of 83 stands at 6.25 while Price to Book Ratio stands at 3.59. Its Price to Cash Flow ratio shows the value of 13.74, whereas, the industry and sector ratio of Price to Cash Flow ticked at 33.75 and 34.08 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Reynolds American Inc (NYSE:RAI) stands at 4.54 while the industry’s and the sector’s growth for next 5 years ticked at 14.78 and 12.88 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at 17.56 and 0.

Reynolds American Inc (NYSE:RAI) Trading Statistics:

The company declined -1.56% and closed its last trading session at $54.96. The market capitalization of the company is at $77.14 Billion. The stock touched 52-week High of $56.65 on Oct 21, 2016 and 52-week Low of $43.38 on Oct 19, 2016. The stock currently has Weekly Volatility of 1.11% and Monthly Volatility of 1.09%. The Beta for the company stands at 0.35 and its Average True Range (ATR) shows a value of 0.8.