RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - NYSE:REZI - US76118Y1047 - Common Stock
43.47 USD
+1.97 (+4.75%)
42.77 USD
-0.7 (-1.61%)
We assign a fundamental rating of 3 out of 10 to REZI. REZI was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
REZI had positive earnings in the past year.
REZI had a positive operating cash flow in the past year.
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 Return On Assets of -9.55%. This is in the lower half of the industry: REZI underperforms 78.05% of its industry peers.
With a Return On Equity value of -31.10%, REZI is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
REZI has a worse Return On Invested Capital (7.26%) than 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REZI is significantly below the industry average of 12.77%.
The last Return On Invested Capital (7.26%) for REZI is above the 3 year average (6.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.55% | ||
| ROE | -31.1% | ||
| ROIC | 7.26% |
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.
Looking at the Operating Margin, with a value of 8.42%, REZI is doing worse than 60.98% of the companies in the same industry.
REZI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 28.84%, REZI perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
REZI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | N/A | ||
| GM | 28.84% |
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.
The number of shares outstanding for REZI has been increased compared to 1 year ago.
Compared to 5 years ago, REZI has more shares outstanding
The debt/assets ratio for REZI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that REZI is in the distress zone and has some risk of bankruptcy.
REZI has a worse Altman-Z score (1.78) than 82.93% of its industry peers.
The Debt to FCF ratio of REZI is 5.08, which is a neutral value as it means it would take REZI, 5.08 years of fcf income to pay off all of its debts.
REZI has a Debt to FCF ratio (5.08) which is in line with its industry peers.
REZI has a Debt/Equity ratio of 0.76. This is a neutral value indicating REZI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, REZI is doing worse than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.81
WACC9.01%
2.3 Liquidity
REZI has a Current Ratio of 1.00. This is a normal value and indicates that REZI is financially healthy and should not expect problems in meeting its short term obligations.
REZI's Current ratio of 1.00 is on the low side compared to the rest of the industry. REZI is outperformed by 90.24% of its industry peers.
REZI has a Quick Ratio of 1.00. This is a bad value and indicates that REZI is not financially healthy enough and could expect problems in meeting its short term obligations.
REZI has a worse Quick ratio (0.63) than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.24% over the past year.
REZI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.35% yearly.
REZI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 20.00%.
The Revenue has been growing slightly by 6.27% on average over the past years.
EPS 1Y (TTM)24.24%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%6.45%
Revenue 1Y (TTM)20%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%22.28%
3.2 Future
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
REZI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y25.24%
EPS Next 2Y16.36%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue Next Year11.35%
Revenue Next 2Y7.3%
Revenue Next 3Y5.64%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.67, REZI is valued on the expensive side.
Based on the Price/Earnings ratio, REZI is valued a bit cheaper than 63.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of REZI to the average of the S&P500 Index (27.67), we can say REZI is valued slightly cheaper.
REZI is valuated correctly with a Price/Forward Earnings ratio of 14.21.
REZI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REZI is cheaper than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, REZI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 14.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REZI is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REZI is valued a bit cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 9.49 |
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 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)1.08
EPS Next 2Y16.36%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
No dividends for REZI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.47
+1.97 (+4.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.75%
Inst Owner Change0.7%
Ins Owners1.11%
Ins Owner Change78.23%
Market Cap6.47B
Revenue(TTM)7.40B
Net Income(TTM)-813000000
Analysts85
Price Target42.33 (-2.62%)
Short Float %3.67%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP-3.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)61.17%
Min EPS beat(2)19.83%
Max EPS beat(2)102.51%
EPS beat(4)4
Avg EPS beat(4)30.97%
Min EPS beat(4)0.64%
Max EPS beat(4)102.51%
EPS beat(8)8
Avg EPS beat(8)30.35%
EPS beat(12)10
Avg EPS beat(12)18.4%
EPS beat(16)13
Avg EPS beat(16)17.23%
Revenue beat(2)1
Avg Revenue beat(2)2.23%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)4.52%
Revenue beat(4)1
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)4.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.02%
Revenue beat(12)2
Avg Revenue beat(12)-1.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.11%
PT rev (1m)18.57%
PT rev (3m)69.39%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)21.37%
EPS NY rev (1m)0%
EPS NY rev (3m)16.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 14.21 | ||
| P/S | 0.87 | ||
| P/FCF | 16.58 | ||
| P/OCF | 13.33 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.49 |
EPS(TTM)2.46
EY5.66%
EPS(NY)3.06
Fwd EY7.04%
FCF(TTM)2.62
FCFY6.03%
OCF(TTM)3.26
OCFY7.5%
SpS49.74
BVpS17.57
TBVpS-11.08
PEG (NY)0.7
PEG (5Y)1.08
Graham Number31.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.55% | ||
| ROE | -31.1% | ||
| ROCE | 12.14% | ||
| ROIC | 7.26% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 318.37% | ||
| OM | 8.42% | ||
| PM (TTM) | N/A | ||
| GM | 28.84% | ||
| FCFM | 5.27% |
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-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 50.53% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.78 |
F-Score6
WACC9.01%
ROIC/WACC0.81
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)24.24%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%6.45%
EPS Next Y25.24%
EPS Next 2Y16.36%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue 1Y (TTM)20%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%22.28%
Revenue Next Year11.35%
Revenue Next 2Y7.3%
Revenue Next 3Y5.64%
Revenue Next 5YN/A
EBIT growth 1Y4.53%
EBIT growth 3Y2.73%
EBIT growth 5Y15.49%
EBIT Next Year59.12%
EBIT Next 3Y21.02%
EBIT Next 5YN/A
FCF growth 1Y113.12%
FCF growth 3Y13.04%
FCF growth 5YN/A
OCF growth 1Y65.53%
OCF growth 3Y12.12%
OCF growth 5Y80.77%