RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
NYSE:REZI - New York Stock Exchange, Inc. - US76118Y1047 - Common Stock - Currency: USD
REZI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. REZI has a medium profitability rating, but doesn't score so well on its financial health evaluation. REZI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year REZI was profitable.
In the past year REZI had a positive cash flow from operations.
Each year in the past 5 years REZI has been profitable.
REZI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REZI has a worse Return On Assets (1.15%) than 75.61% of its industry peers.
REZI's Return On Equity of 2.84% is on the low side compared to the rest of the industry. REZI is outperformed by 73.17% of its industry peers.
REZI's Return On Invested Capital of 5.65% is on the low side compared to the rest of the industry. REZI is outperformed by 73.17% of its industry peers.
REZI had an Average Return On Invested Capital over the past 3 years of 6.84%. This is significantly below the industry average of 12.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 2.84% | ||
| ROIC | 5.65% |
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
REZI has a Profit Margin of 1.39%. This is in the lower half of the industry: REZI underperforms 75.61% of its industry peers.
In the last couple of years the Profit Margin of REZI has grown nicely.
With a Operating Margin value of 8.96%, REZI is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
REZI's Operating Margin has improved in the last couple of years.
REZI has a Gross Margin of 28.12%. This is in the lower half of the industry: REZI underperforms 60.98% of its industry peers.
REZI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.96% | ||
| PM (TTM) | 1.39% | ||
| GM | 28.12% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REZI 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.
REZI has a worse debt/assets ratio than last year.
2.2 Solvency
REZI has an Altman-Z score of 1.71. This is a bad value and indicates that REZI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.71, REZI is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
REZI has a debt to FCF ratio of 5.45. This is a neutral value as REZI would need 5.45 years to pay back of all of its debts.
REZI has a Debt to FCF ratio of 5.45. This is in the lower half of the industry: REZI underperforms 63.41% of its industry peers.
REZI has a Debt/Equity ratio of 0.60. This is a neutral value indicating REZI is somewhat dependend on debt financing.
REZI has a Debt to Equity ratio of 0.60. This is comparable to the rest of the industry: REZI outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.65
WACC8.65%
2.3 Liquidity
REZI has a Current Ratio of 1.77. This is a normal value and indicates that REZI is financially healthy and should not expect problems in meeting its short term obligations.
REZI has a Current ratio of 1.77. This is comparable to the rest of the industry: REZI outperforms 41.46% of its industry peers.
REZI has a Quick Ratio of 1.08. This is a normal value and indicates that REZI is financially healthy and should not expect problems in meeting its short term obligations.
REZI has a worse Quick ratio (1.08) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
REZI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.51%, which is quite impressive.
Measured over the past years, REZI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.35% on average per year.
Looking at the last year, REZI shows a quite strong growth in Revenue. The Revenue has grown by 8.31% in the last year.
Measured over the past years, REZI shows a small growth in Revenue. The Revenue has been growing by 6.27% on average per year.
EPS 1Y (TTM)39.51%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%22.92%
Revenue 1Y (TTM)8.31%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%20.88%
3.2 Future
REZI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
Based on estimates for the next years, REZI will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y-1.05%
EPS Next 2Y4.94%
EPS Next 3Y4.8%
EPS Next 5YN/A
Revenue Next Year7.61%
Revenue Next 2Y4.88%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
REZI is valuated cheaply with a Price/Earnings ratio of 6.69.
Based on the Price/Earnings ratio, REZI is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.63. REZI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.76, the valuation of REZI can be described as very cheap.
Based on the Price/Forward Earnings ratio, REZI is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
REZI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than REZI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, REZI is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.14 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y4.94%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:REZI (4/22/2025, 2:30:06 PM)
15.11
-0.56 (-3.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-0.1%
Ins Owners1.89%
Ins Owner Change6.85%
Market Cap2.23B
Analysts78
Price Target28.9 (91.26%)
Short Float %2.43%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP12.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.77%
Min EPS beat(2)0.64%
Max EPS beat(2)0.89%
EPS beat(4)4
Avg EPS beat(4)15.68%
Min EPS beat(4)0.64%
Max EPS beat(4)39.63%
EPS beat(8)7
Avg EPS beat(8)13.17%
EPS beat(12)10
Avg EPS beat(12)11.43%
EPS beat(16)12
Avg EPS beat(16)10.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)1.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)4
Avg Revenue beat(16)-0.91%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.18%
EPS NY rev (1m)-10.51%
EPS NY rev (3m)-10.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)30.03%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 6.76 | ||
| P/S | 0.33 | ||
| P/FCF | 6.14 | ||
| P/OCF | 5.03 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.81 |
EPS(TTM)2.26
EY14.96%
EPS(NY)2.24
Fwd EY14.8%
FCF(TTM)2.46
FCFY16.29%
OCF(TTM)3
OCFY19.87%
SpS45.72
BVpS22.38
TBVpS-6.35
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 2.84% | ||
| ROCE | 9.46% | ||
| ROIC | 5.65% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 24.67% | ||
| OM | 8.96% | ||
| PM (TTM) | 1.39% | ||
| GM | 28.12% | ||
| FCFM | 5.38% |
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%
ROICexcg growth 3Y-12.14%
ROICexcg 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-Score4
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 5.45 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 55.56% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 7.77 | ||
| Cash Conversion | 59.2% | ||
| Profit Quality | 387.23% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.71 |
F-Score4
WACC8.65%
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)39.51%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%22.92%
EPS Next Y-1.05%
EPS Next 2Y4.94%
EPS Next 3Y4.8%
EPS Next 5YN/A
Revenue 1Y (TTM)8.31%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%20.88%
Revenue Next Year7.61%
Revenue Next 2Y4.88%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y2.89%
EBIT growth 3Y2.73%
EBIT growth 5Y15.49%
EBIT Next Year39.6%
EBIT Next 3Y17.76%
EBIT Next 5YN/A
FCF growth 1Y8.66%
FCF growth 3Y13.04%
FCF growth 5YN/A
OCF growth 1Y0.91%
OCF growth 3Y12.12%
OCF growth 5Y80.77%