RESIDEO TECHNOLOGIES INC (REZI)
US76118Y1047 - Common Stock
Taking everything into account, REZI scores 4 out of 10 in our fundamental rating. REZI was compared to 39 industry peers in the Building Products industry. While REZI seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
In the past 5 years REZI has always been profitable.
Each year in the past 5 years REZI had a positive operating cash flow.
1.2 Ratios
REZI's Return On Assets of 2.02% is on the low side compared to the rest of the industry. REZI is outperformed by 76.92% of its industry peers.
REZI has a worse Return On Equity (4.89%) than 74.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.31%, REZI is doing worse than 69.23% 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 13.33%.
| 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: 79.49% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of REZI has declined.
Looking at the Operating Margin, with a value of 9.39%, REZI is doing worse than 69.23% of the companies in the same industry.
REZI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.86%, REZI is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of REZI has declined.
| 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%
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.
The number of shares outstanding for REZI has been reduced compared to 1 year ago.
The number of shares outstanding for REZI has been increased compared to 5 years ago.
REZI has a better debt/assets ratio than last year.
2.2 Solvency
REZI has an Altman-Z score of 1.81. This is not the best score and indicates that REZI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.81, REZI is doing worse than 87.18% of the companies in the same industry.
The Debt to FCF ratio of REZI is 4.79, which is a neutral value as it means it would take REZI, 4.79 years of fcf income to pay off all of its debts.
REZI has a Debt to FCF ratio of 4.79. This is comparable to the rest of the industry: REZI outperforms 41.03% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that REZI is somewhat dependend on debt financing.
REZI has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: REZI outperforms 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.64
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.82 indicates that REZI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, REZI is in line with its industry, outperforming 41.03% of the companies in the same industry.
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.
With a Quick ratio value of 1.10, REZI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
REZI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.90%, which is quite impressive.
REZI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.53% yearly.
Looking at the last year, REZI shows a small growth in Revenue. The Revenue has grown by 2.79% in the last year.
The Revenue has been growing slightly by 5.28% on average over the past years.
EPS 1Y (TTM)31.9%
EPS 3Y0.63%
EPS 5Y-15.53%
EPS Q2Q%41.46%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y7.17%
Revenue growth 5Y5.28%
Sales Q2Q%17.63%
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 18.46% yearly.
REZI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y41.46%
EPS Next 2Y24.2%
EPS Next 3Y18.46%
EPS Next 5YN/A
Revenue Next Year8.25%
Revenue Next 2Y8.56%
Revenue Next 3Y6.74%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.63, the valuation of REZI can be described as very reasonable.
92.31% of the companies in the same industry are more expensive than REZI, based on the Price/Earnings ratio.
REZI is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.15 indicates a reasonable valuation of REZI.
92.31% of the companies in the same industry are more expensive than REZI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.69. REZI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REZI indicates a rather cheap valuation: REZI is cheaper than 97.44% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, REZI is valued cheaply inside the industry as 94.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 6.6 |
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.
REZI's earnings are expected to grow with 18.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y24.2%
EPS Next 3Y18.46%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RESIDEO TECHNOLOGIES INC
NYSE:REZI (1/3/2025, 8:04:00 PM)
After market: 22.86 0 (0%)22.86
+0.08 (+0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.57%
Inst Owner Change0.43%
Ins Owners1.84%
Ins Owner Change-1.41%
Market Cap3.36B
Analysts78
Price Target28.9 (26.42%)
Short Float %1.91%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)11.11%
PT rev (3m)15.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)16.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.52 | ||
| P/FCF | 8.1 | ||
| P/OCF | 6.67 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.6 |
EPS(TTM)2.15
EY9.41%
EPS(NY)2.5
Fwd EY10.93%
FCF(TTM)2.82
FCFY12.35%
OCF(TTM)3.43
OCFY15%
SpS43.82
BVpS22.82
TBVpS-6.55
PEG (NY)0.26
PEG (5Y)N/A
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 | 1.81 |
F-Score5
WACC9.82%
ROIC/WACC0.64
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)31.9%
EPS 3Y0.63%
EPS 5Y-15.53%
EPS Q2Q%41.46%
EPS Next Y41.46%
EPS Next 2Y24.2%
EPS Next 3Y18.46%
EPS Next 5YN/A
Revenue 1Y (TTM)2.79%
Revenue growth 3Y7.17%
Revenue growth 5Y5.28%
Sales Q2Q%17.63%
Revenue Next Year8.25%
Revenue Next 2Y8.56%
Revenue Next 3Y6.74%
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%