Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Price to Earnings (P/E)
since 2005

Microsoft Excel

Paying user area

The data is hidden behind: . Unhide it.

This is a one-time payment. There is no automatic renewal.


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Apple Pay Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Calculation

Reynolds American Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Reynolds American Inc. Annual Report.


Share Price
The share price showed an overall upward trend from 2006 to 2017, starting at $13.25 and reaching $60.54 by 2017. There was a noticeable dip in 2009 to $8.83, which may reflect broader market conditions or company-specific challenges during that period. Following this decline, the share price steadily increased each year, with particularly robust growth beginning in 2013, culminating in a sharp rise between 2014 and 2017.
Earnings per Share (EPS)
EPS values exhibited fluctuations over the analyzed years. From 2006 to 2009, EPS gradually increased from $0.88 to $1.15, despite a slight drop in 2010 to $0.83. Post-2010, EPS generally trended upwards, although with some volatility, including a decline in 2013. The most significant growth occurred between 2015 and 2017, when EPS jumped from $1.38 to $4.26, indicating improved profitability or operational efficiency in the latter years.
Price-to-Earnings (P/E) Ratio
The P/E ratio exhibited variability throughout the period. Initially, it remained relatively stable around 15 from 2006 to 2008. It dropped sharply in 2009 to 7.69, corresponding with the decreased share price and relatively steady EPS that year. From 2010 onwards, the ratio generally fluctuated between approximately 15 and 25, peaking at 25.41 in 2015. By 2017, the P/E ratio decreased to 14.21, reflecting either an increase in earnings relative to share price or a market revaluation of the company's stock.
Overall Trends and Insights
The data indicates a period of volatility around 2009, likely attributable to external economic factors or company-specific events, with recovery and strong growth evident in the subsequent years. The acceleration in EPS from 2015 onwards corresponds with rising share prices, signaling enhanced investor confidence and improved financial performance. The P/E ratio’s fluctuation implies changing market perceptions of the company’s valuation and profitability, with a notable re-rating downward by 2017 despite strong EPS growth, suggesting a possible shift in market expectations or sector valuation norms.

Comparison to Competitors

Reynolds American Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Food, Beverage & Tobacco)

Reynolds American Inc., P/E, long-term trends, comparison to sector (food, beverage & tobacco)

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Consumer Staples)

Reynolds American Inc., P/E, long-term trends, comparison to industry (consumer staples)

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).