RESIDEO TECHNOLOGIES INC(NYSE:REZI) stock Fundamental Analysis

Fundamental Rating

Overall REZI gets a fundamental rating of 3 out of 10. We evaluated REZI against 40 industry peers in the Building Products industry. Both the profitability and financial health of REZI have multiple concerns. REZI is valued quite cheap, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year REZI was profitable.

REZI had a positive operating cash flow in the past year.

Of the past 5 years REZI 4 years were profitable.

REZI had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of REZI (2.02%) is worse than 77.50% of its industry peers.

Looking at the Return On Equity, with a value of 4.89%, REZI is doing worse than 72.50% of the companies in the same industry.

Looking at the Return On Invested Capital, with a value of 6.31%, REZI is doing worse than 67.50% of the companies in the same industry.

The Average Return On Invested Capital over the past 3 years for REZI is below the industry average of 13.20%.

		Industry Rank	Sector Rank
ROA	2.02%
ROE	4.89%
ROIC	6.31%

ROA(3y)3.91%

ROA(5y)2.62%

ROE(3y)9.86%

ROE(5y)6.74%

ROIC(3y)8.46%

ROIC(5y)7.33%

1.3 Margins

With a Profit Margin value of 2.55%, REZI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.

In the last couple of years the Profit Margin of REZI has declined.

REZI's Operating Margin of 9.39% is on the low side compared to the rest of the industry. REZI is outperformed by 67.50% of its industry peers.

In the last couple of years the Operating Margin of REZI has declined.

With a Gross Margin value of 27.86%, REZI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.

REZI's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	9.39%
PM (TTM)	2.55%
GM	27.86%

OM growth 3Y10.88%

OM growth 5Y-1.77%

PM growth 3Y66.44%

PM growth 5Y-16.7%

GM growth 3Y1.39%

GM growth 5Y-1.7%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

Based on the Altman-Z score of 1.75, we must say that REZI is in the distress zone and has some risk of bankruptcy.

The Altman-Z score of REZI (1.75) is worse than 85.00% of its industry peers.

REZI has a debt to FCF ratio of 4.79. This is a neutral value as REZI would need 4.79 years to pay back of all of its debts.

REZI has a worse Debt to FCF ratio (4.79) than 60.00% of its industry peers.

REZI has a Debt/Equity ratio of 0.59. This is a neutral value indicating REZI is somewhat dependend on debt financing.

REZI has a Debt to Equity ratio (0.59) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.59
Debt/FCF	4.79
Altman-Z	1.75

ROIC/WACC0.65

WACC9.72%

2.3 Liquidity

A Current Ratio of 1.82 indicates that REZI should not have too much problems paying its short term obligations.

REZI has a Current ratio of 1.82. This is comparable to the rest of the industry: REZI outperforms 45.00% of its industry peers.

REZI has a Quick Ratio of 1.10. This is a normal value and indicates that REZI is financially healthy and should not expect problems in meeting its short term obligations.

The Quick ratio of REZI (1.10) is worse than 67.50% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.82
Quick Ratio	1.1

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.

REZI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.35% yearly.

EPS 1Y (TTM)39.51%

EPS 3Y11.51%

EPS 5Y16.35%

EPS Q2Q%22.92%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%20.88%

3.2 Future

REZI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.16% yearly.

The Revenue is expected to grow by 5.99% on average over the next years.

EPS Next Y10.58%

EPS Next 2Y9.16%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year8.87%

Revenue Next 2Y5.99%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.61, the valuation of REZI can be described as reasonable.

Based on the Price/Earnings ratio, REZI is valued cheaper than 97.50% of the companies in the same industry.

When comparing the Price/Earnings ratio of REZI to the average of the S&P500 Index (29.63), we can say REZI is valued rather cheaply.

A Price/Forward Earnings ratio of 7.78 indicates a rather cheap valuation of REZI.

Compared to the rest of the industry, the Price/Forward Earnings ratio of REZI indicates a rather cheap valuation: REZI is cheaper than 97.50% of the companies listed in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, REZI is valued rather cheaply.

		Industry Rank	Sector Rank
PE	8.61
Fwd PE	7.78

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, REZI is valued cheaper than 100.00% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, REZI is valued cheaper than 97.50% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.89
EV/EBITDA	5.91

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.

PEG (NY)0.81

PEG (5Y)0.53

EPS Next 2Y9.16%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

REZI does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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RESIDEO TECHNOLOGIES INC

NYSE:REZI (2/21/2025, 8:04:00 PM)

After market: 19.45 0 (0%)

19.45

-1.98 (-9.24%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupCapital Goods

GICS IndustryBuilding Products

Earnings (Last)02-20 2025-02-20/amc

Earnings (Next)04-30 2025-04-30/amc

Inst Owners97.76%

Inst Owner Change-87.21%

Ins Owners1.89%

Ins Owner Change6.36%

Market Cap2.86B

Analysts78

Price Target28.9 (48.59%)

Short Float %2.17%

Short Ratio3.51

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)11.11%

Min EPS beat(2)0.64%

Max EPS beat(2)21.57%

EPS beat(4)4

Avg EPS beat(4)17.32%

Min EPS beat(4)0.64%

Max EPS beat(4)39.63%

EPS beat(8)7

Avg EPS beat(8)15.51%

EPS beat(12)10

Avg EPS beat(12)12.96%

EPS beat(16)11

Avg EPS beat(16)8.72%

Revenue beat(2)1

Avg Revenue beat(2)0.09%

Min Revenue beat(2)-1.35%

Max Revenue beat(2)1.53%

Revenue beat(4)1

Avg Revenue beat(4)-0.71%

Min Revenue beat(4)-1.91%

Max Revenue beat(4)1.53%

Revenue beat(8)1

Avg Revenue beat(8)-1.27%

Revenue beat(12)2

Avg Revenue beat(12)-1.49%

Revenue beat(16)5

Avg Revenue beat(16)-0.75%

PT rev (1m)0%

PT rev (3m)11.11%

EPS NQ rev (1m)-3.91%

EPS NQ rev (3m)-3.91%

EPS NY rev (1m)0%

EPS NY rev (3m)-1.89%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.19%

Valuation

		Industry Rank	Sector Rank
PE	8.61
Fwd PE	7.78
P/S	0.44
P/FCF	6.89
P/OCF	5.67
P/B	0.85
P/tB	N/A
EV/EBITDA	5.91

EPS(TTM)2.26

EY11.62%

EPS(NY)2.5

Fwd EY12.85%

FCF(TTM)2.82

FCFY14.52%

OCF(TTM)3.43

OCFY17.63%

SpS43.82

BVpS22.82

TBVpS-6.55

PEG (NY)0.81

PEG (5Y)0.53

Profitability

		Industry Rank	Sector Rank
ROA	2.02%
ROE	4.89%
ROCE	9.36%
ROIC	6.31%
ROICexc	6.87%
ROICexgc	25.23%
OM	9.39%
PM (TTM)	2.55%
GM	27.86%
FCFM	6.44%

ROA(3y)3.91%

ROA(5y)2.62%

ROE(3y)9.86%

ROE(5y)6.74%

ROIC(3y)8.46%

ROIC(5y)7.33%

ROICexc(3y)9.67%

ROICexc(5y)8.27%

ROICexgc(3y)34.73%

ROICexgc(5y)31.67%

ROCE(3y)12.56%

ROCE(5y)10.88%

ROICexcg growth 3Y3.23%

ROICexcg growth 5Y-16.55%

ROICexc growth 3Y9.98%

ROICexc growth 5Y-3.23%

OM growth 3Y10.88%

OM growth 5Y-1.77%

PM growth 3Y66.44%

PM growth 5Y-16.7%

GM growth 3Y1.39%

GM growth 5Y-1.7%

F-Score5

Asset Turnover0.79

Health

		Industry Rank	Sector Rank
Debt/Equity	0.59
Debt/FCF	4.79
Debt/EBITDA	2.72
Cap/Depr	71.2%
Cap/Sales	1.38%
Interest Coverage	10.8
Cash Conversion	69.04%
Profit Quality	253.05%
Current Ratio	1.82
Quick Ratio	1.1
Altman-Z	1.75

F-Score5

WACC9.72%

ROIC/WACC0.65

Cap/Depr(3y)89.72%

Cap/Depr(5y)93.86%

Cap/Sales(3y)1.36%

Cap/Sales(5y)1.48%

Profit Quality(3y)95.78%

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)39.51%

EPS 3Y11.51%

EPS 5Y16.35%

EPS Q2Q%22.92%

EPS Next Y10.58%

EPS Next 2Y9.16%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%20.88%

Revenue Next Year8.87%

Revenue Next 2Y5.99%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y5.22%

EBIT growth 3Y18.83%

EBIT growth 5Y3.41%

EBIT Next Year21.39%

EBIT Next 3Y12.31%

EBIT Next 5YN/A

FCF growth 1Y446.05%

FCF growth 3Y24.4%

FCF growth 5Y-3.39%

OCF growth 1Y303.2%

OCF growth 3Y21.72%

OCF growth 5Y-0.97%

RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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