RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REZI - US76118Y1047 - Common Stock
33.81 USD
-0.44 (-1.28%)
33.81 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. While REZI is still in line with the averages on profitability rating, there are concerns on its financial health. REZI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
REZI had positive earnings in the past year.
In the past year REZI has reported a negative cash flow from operations.
Each year in the past 5 years REZI has been profitable.
In the past 5 years REZI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.46%, REZI is doing worse than 78.05% of the companies in the same industry.
REZI has a Return On Equity of -25.01%. This is in the lower half of the industry: REZI underperforms 78.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.69%, REZI is doing worse than 68.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REZI is significantly below the industry average of 12.44%.
| 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.
REZI has a worse Operating Margin (8.39%) than 60.98% of its industry peers.
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
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 1.98. 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.
REZI has a Altman-Z score of 1.98. This is amonst the worse of the industry: REZI underperforms 85.37% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that REZI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.14, REZI is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.66
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.88 indicates that REZI should not have too much problems paying its short term obligations.
REZI has a Current ratio (1.88) which is in line with its industry peers.
REZI has a Quick Ratio of 1.07. 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 (1.07) than 63.41% of its industry peers.
| 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.
The Revenue has grown by 15.45% in the past year. This is quite good.
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
REZI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.92% yearly.
Based on estimates for the next years, REZI will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
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 12.21, REZI is valued correctly.
80.49% of the companies in the same industry are more expensive than REZI, based on the Price/Earnings ratio.
REZI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of REZI can be described as reasonable.
Based on the Price/Forward Earnings ratio, REZI is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.10. REZI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
65.85% of the companies in the same industry are more expensive than REZI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
REZI's 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 12.92% in the coming years.
PEG (NY)0.48
PEG (5Y)0.75
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 |
33.81
-0.44 (-1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners90.09%
Inst Owner Change-2.84%
Ins Owners1.1%
Ins Owner Change49.37%
Market Cap5.06B
Revenue(TTM)7.43B
Net Income(TTM)-693.00M
Analysts85
Price Target44.88 (32.74%)
Short Float %3.38%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-39.22%
EPS NQ rev (3m)-39.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)2.77
EY8.19%
EPS(NY)3.06
Fwd EY9.05%
FCF(TTM)-8.91
FCFYN/A
OCF(TTM)-8.24
OCFYN/A
SpS49.66
BVpS18.51
TBVpS-9.78
PEG (NY)0.48
PEG (5Y)0.75
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
WACC8.65%
ROIC/WACC0.66
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 Y25.24%
EPS Next 2Y16.36%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue 1Y (TTM)15.45%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%1.97%
Revenue Next Year11.35%
Revenue Next 2Y7.3%
Revenue Next 3Y5.64%
Revenue Next 5YN/A
EBIT growth 1Y3.14%
EBIT growth 3Y2.73%
EBIT growth 5Y15.49%
EBIT Next Year59.12%
EBIT Next 3Y21.02%
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 12.21 and the Price/Book (PB) ratio is 1.83.
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 25.24% in the next year.