RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:REZI - US76118Y1047 - Common Stock
29.84 USD
+1.01 (+3.5%)
29.84 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to REZI. REZI was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
REZI had positive earnings in the past year.
REZI had a negative operating cash flow in the past year.
In the past 5 years REZI has always been profitable.
In the past 5 years REZI always reported a positive cash flow from operatings.
1.2 Ratios
REZI has a worse Return On Assets (-8.46%) than 78.05% of its industry peers.
The Return On Equity of REZI (-25.01%) is worse than 78.05% of its industry peers.
REZI has a Return On Invested Capital of 5.69%. This is in the lower half of the industry: REZI underperforms 70.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REZI is significantly below the industry average of 12.50%.
| 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.
The Operating Margin of REZI (8.39%) is worse than 60.98% of its industry peers.
In the last couple of years the Operating Margin of REZI has grown nicely.
Looking at the Gross Margin, with a value of 29.13%, REZI is in line with its industry, 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 | 8.39% | ||
| 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
REZI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
REZI has more shares outstanding than it did 1 year ago.
REZI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for REZI is higher compared to a year ago.
2.2 Solvency
REZI has an Altman-Z score of 1.90. 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 1.90. This is amonst the worse of the industry: REZI underperforms 85.37% of its industry peers.
REZI has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.14, REZI is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC0.71
WACC8.01%
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 of 1.88. This is comparable to the rest of the industry: REZI outperforms 53.66% of its industry peers.
A Quick Ratio of 1.07 indicates that REZI should not have too much problems paying its short term obligations.
The Quick ratio of REZI (1.07) is worse than 60.98% 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
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.64% on average over the next years.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.77 indicates a reasonable valuation of REZI.
Compared to the rest of the industry, the Price/Earnings ratio of REZI indicates a rather cheap valuation: REZI is cheaper than 85.37% of the companies listed in the same industry.
REZI is valuated cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
REZI is valuated reasonably with a Price/Forward Earnings ratio of 9.75.
80.49% 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 34.46. REZI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
REZI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REZI is cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.91 |
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)0.43
PEG (5Y)0.66
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 |
29.84
+1.01 (+3.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.75%
Inst Owner Change-2.84%
Ins Owners1.11%
Ins Owner Change49.37%
Market Cap4.44B
Revenue(TTM)7.43B
Net Income(TTM)-693.00M
Analysts85
Price Target44.88 (50.4%)
Short Float %2.84%
Short Ratio1.82
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)-20.26%
EPS NQ rev (3m)-20.26%
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 | 10.77 | ||
| Fwd PE | 9.75 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.91 |
EPS(TTM)2.77
EY9.28%
EPS(NY)3.06
Fwd EY10.25%
FCF(TTM)-8.97
FCFYN/A
OCF(TTM)-8.29
OCFYN/A
SpS49.98
BVpS18.63
TBVpS-9.84
PEG (NY)0.43
PEG (5Y)0.66
Graham Number34.07
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 | 1.9 |
F-Score3
WACC8.01%
ROIC/WACC0.71
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 10.77 and the Price/Book (PB) ratio is 1.6.
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.