RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REZI - US76118Y1047 - Common Stock
35.72 USD
+1.12 (+3.24%)
35.72 USD
0 (0%)
REZI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. There are concerns on the financial health of REZI while its profitability can be described as average. REZI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year REZI was profitable.
REZI had a negative operating cash flow in the past year.
Each year in the past 5 years REZI has been profitable.
Each year in the past 5 years REZI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -8.46%, REZI is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -25.01%, REZI is doing worse than 75.61% of the companies in the same industry.
REZI has a worse Return On Invested Capital (5.69%) than 68.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REZI is significantly below the industry average of 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.46% | ||
| ROE | -25.01% | ||
| ROIC | 5.69% |
ROA(3y)2.9%
ROA(5y)2.7%
ROE(3y)7.19%
ROE(5y)6.84%
ROIC(3y)6.84%
ROIC(5y)6.67%
1.3 Margins
In the last couple of years the Profit Margin of REZI has grown nicely.
With a Operating Margin value of 8.39%, REZI is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
REZI's Operating Margin has improved in the last couple of years.
REZI's Gross Margin of 29.13% is in line compared to the rest of the industry. REZI outperforms 43.90% of its industry peers.
In the last couple of years the Gross Margin of REZI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | N/A | ||
| GM | 29.13% |
OM growth 3Y-2.13%
OM growth 5Y8.67%
PM growth 3Y-31.24%
PM growth 5Y13.27%
GM growth 3Y1.74%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
REZI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
REZI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for REZI has been increased compared to 5 years ago.
Compared to 1 year ago, REZI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.98 indicates that REZI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.98, REZI is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.14 is on the high side and indicates that REZI has dependencies on debt financing.
REZI's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. REZI is outperformed by 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.65
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.88 indicates that REZI should not have too much problems paying its short term obligations.
The Current ratio of REZI (1.88) is comparable to the rest of the industry.
A Quick Ratio of 1.07 indicates that REZI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, REZI is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
REZI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.84%, which is quite impressive.
The Earnings Per Share has been growing by 16.35% on average over the past years. This is quite good.
Looking at the last year, REZI shows a quite strong growth in Revenue. The Revenue has grown by 15.45% in the last year.
The Revenue has been growing slightly by 6.27% on average over the past years.
EPS 1Y (TTM)28.84%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%53.45%
Revenue 1Y (TTM)15.45%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%1.97%
3.2 Future
Based on estimates for the next years, REZI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.32% on average per year.
REZI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y19.6%
EPS Next 2Y14.9%
EPS Next 3Y12.32%
EPS Next 5YN/A
Revenue Next Year10.53%
Revenue Next 2Y7.19%
Revenue Next 3Y6.09%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.90, REZI is valued correctly.
Based on the Price/Earnings ratio, REZI is valued cheaper than 85.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of REZI to the average of the S&P500 Index (26.38), we can say REZI is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.97, the valuation of REZI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, REZI is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.83. REZI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
REZI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REZI is cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as REZI's earnings are expected to grow with 12.32% in the coming years.
PEG (NY)0.66
PEG (5Y)0.79
EPS Next 2Y14.9%
EPS Next 3Y12.32%
5. Dividend
5.1 Amount
No dividends for REZI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
35.72
+1.12 (+3.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change-2.83%
Ins Owners1.1%
Ins Owner Change49.12%
Market Cap5.35B
Revenue(TTM)7.43B
Net Income(TTM)-693.00M
Analysts85
Price Target44.88 (25.64%)
Short Float %3.82%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP-5.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.36%
Min EPS beat(2)19.83%
Max EPS beat(2)22.89%
EPS beat(4)4
Avg EPS beat(4)36.53%
Min EPS beat(4)0.89%
Max EPS beat(4)102.51%
EPS beat(8)8
Avg EPS beat(8)26.92%
EPS beat(12)11
Avg EPS beat(12)22.52%
EPS beat(16)14
Avg EPS beat(16)18.85%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-2.66%
Max Revenue beat(2)4.52%
Revenue beat(4)1
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)4.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.23%
Revenue beat(12)2
Avg Revenue beat(12)-0.76%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)6.02%
PT rev (3m)25.71%
EPS NQ rev (1m)-23.77%
EPS NQ rev (3m)-39.22%
EPS NY rev (1m)-4.5%
EPS NY rev (3m)-4.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 11.97 | ||
| P/S | 0.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)2.77
EY7.75%
EPS(NY)2.98
Fwd EY8.35%
FCF(TTM)-8.91
FCFYN/A
OCF(TTM)-8.24
OCFYN/A
SpS49.66
BVpS18.51
TBVpS-9.78
PEG (NY)0.66
PEG (5Y)0.79
Graham Number33.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.46% | ||
| ROE | -25.01% | ||
| ROCE | 9.52% | ||
| ROIC | 5.69% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 18.88% | ||
| OM | 8.39% | ||
| PM (TTM) | N/A | ||
| GM | 29.13% | ||
| FCFM | N/A |
ROA(3y)2.9%
ROA(5y)2.7%
ROE(3y)7.19%
ROE(5y)6.84%
ROIC(3y)6.84%
ROIC(5y)6.67%
ROICexc(3y)7.58%
ROICexc(5y)7.6%
ROICexgc(3y)26.91%
ROICexgc(5y)28.28%
ROCE(3y)11.43%
ROCE(5y)11.15%
ROICexgc growth 3Y-12.14%
ROICexgc growth 5Y0.77%
ROICexc growth 3Y-12.11%
ROICexc growth 5Y4.76%
OM growth 3Y-2.13%
OM growth 5Y8.67%
PM growth 3Y-31.24%
PM growth 5Y13.27%
GM growth 3Y1.74%
GM growth 5Y1.69%
F-Score3
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 52.88% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.98 |
F-Score3
WACC8.75%
ROIC/WACC0.65
Cap/Depr(3y)84.37%
Cap/Depr(5y)81.22%
Cap/Sales(3y)1.4%
Cap/Sales(5y)1.33%
Profit Quality(3y)194.4%
Profit Quality(5y)231.52%
High Growth Momentum
Growth
EPS 1Y (TTM)28.84%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%53.45%
EPS Next Y19.6%
EPS Next 2Y14.9%
EPS Next 3Y12.32%
EPS Next 5YN/A
Revenue 1Y (TTM)15.45%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%1.97%
Revenue Next Year10.53%
Revenue Next 2Y7.19%
Revenue Next 3Y6.09%
Revenue Next 5YN/A
EBIT growth 1Y3.14%
EBIT growth 3Y2.73%
EBIT growth 5Y15.49%
EBIT Next Year53.34%
EBIT Next 3Y21.18%
EBIT Next 5YN/A
FCF growth 1Y-798.43%
FCF growth 3Y13.04%
FCF growth 5YN/A
OCF growth 1Y-490.19%
OCF growth 3Y12.12%
OCF growth 5Y80.77%
RESIDEO TECHNOLOGIES INC / REZI FAQ
Can you provide the ChartMill fundamental rating for RESIDEO TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to REZI.
What is the valuation status of RESIDEO TECHNOLOGIES INC (REZI) stock?
ChartMill assigns a valuation rating of 6 / 10 to RESIDEO TECHNOLOGIES INC (REZI). This can be considered as Fairly Valued.
What is the profitability of REZI stock?
RESIDEO TECHNOLOGIES INC (REZI) has a profitability rating of 4 / 10.
What is the valuation of RESIDEO TECHNOLOGIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RESIDEO TECHNOLOGIES INC (REZI) is 12.9 and the Price/Book (PB) ratio is 1.93.
What is the expected EPS growth for RESIDEO TECHNOLOGIES INC (REZI) stock?
The Earnings per Share (EPS) of RESIDEO TECHNOLOGIES INC (REZI) is expected to grow by 19.6% in the next year.