RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
NYSE:REZI - New York Stock Exchange, Inc. - US76118Y1047 - Common Stock - Currency: USD
REZI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years REZI always reported a positive cash flow from operatings.
1.2 Ratios
REZI has a Return On Assets of 0.59%. This is amonst the worse of the industry: REZI underperforms 80.49% of its industry peers.
REZI has a worse Return On Equity (1.43%) than 78.05% of its industry peers.
With a Return On Invested Capital value of 5.62%, REZI is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
REZI had an Average Return On Invested Capital over the past 3 years of 6.84%. This is significantly below the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 1.43% | ||
| ROIC | 5.62% |
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
Looking at the Profit Margin, with a value of 0.68%, REZI is doing worse than 80.49% of the companies in the same industry.
In the last couple of years the Profit Margin of REZI has grown nicely.
The Operating Margin of REZI (8.67%) is worse than 65.85% of its industry peers.
REZI's Operating Margin has improved in the last couple of years.
REZI's Gross Margin of 28.56% is on the low side compared to the rest of the industry. REZI is outperformed by 60.98% of its industry peers.
In the last couple of years the Gross Margin of REZI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.67% | ||
| PM (TTM) | 0.68% | ||
| GM | 28.56% |
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.
Compared to 1 year ago, REZI has more shares outstanding
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
An Altman-Z score of 1.95 indicates that REZI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.95, REZI is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
REZI has a debt to FCF ratio of 6.91. This is a slightly negative value and a sign of low solvency as REZI would need 6.91 years to pay back of all of its debts.
REZI's Debt to FCF ratio of 6.91 is on the low side compared to the rest of the industry. REZI is outperformed by 68.29% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that REZI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, REZI perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.91 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.64
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.94 indicates that REZI should not have too much problems paying its short term obligations.
REZI's Current ratio of 1.94 is in line compared to the rest of the industry. REZI outperforms 53.66% of its industry peers.
A Quick Ratio of 1.16 indicates that REZI should not have too much problems paying its short term obligations.
The Quick ratio of REZI (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.35% over the past year.
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 14.02% in the past year. This is quite good.
REZI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.27% yearly.
EPS 1Y (TTM)42.35%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%34.04%
Revenue 1Y (TTM)14.02%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%19.11%
3.2 Future
Based on estimates for the next years, REZI will show a small growth in Earnings Per Share. The EPS will grow by 6.08% on average per year.
Based on estimates for the next years, REZI will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
EPS Next Y7.87%
EPS Next 2Y6.38%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y6.47%
Revenue Next 3Y4.96%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.81 indicates a reasonable valuation of REZI.
Based on the Price/Earnings ratio, REZI is valued cheaper than 90.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, REZI is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.29, the valuation of REZI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, REZI is valued cheaper than 95.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. REZI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.29 |
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 97.56% of the companies listed in the same industry.
87.80% of the companies in the same industry are more expensive than REZI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 6.34 |
4.3 Compensation for Growth
REZI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.25
PEG (5Y)0.6
EPS Next 2Y6.38%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.75
+0.25 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.09%
Inst Owner Change-0.02%
Ins Owners1.06%
Ins Owner Change64.7%
Market Cap3.53B
Analysts76
Price Target24.99 (5.22%)
Short Float %3.11%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP43.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.7%
Min EPS beat(2)0.89%
Max EPS beat(2)102.51%
EPS beat(4)4
Avg EPS beat(4)31.4%
Min EPS beat(4)0.64%
Max EPS beat(4)102.51%
EPS beat(8)7
Avg EPS beat(8)24.36%
EPS beat(12)10
Avg EPS beat(12)17.58%
EPS beat(16)13
Avg EPS beat(16)17.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.53%
Revenue beat(8)1
Avg Revenue beat(8)-0.97%
Revenue beat(12)1
Avg Revenue beat(12)-1.48%
Revenue beat(16)3
Avg Revenue beat(16)-1.3%
PT rev (1m)11.36%
PT rev (3m)-13.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.65%
EPS NY rev (1m)0%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.5 | ||
| P/FCF | 12.29 | ||
| P/OCF | 9.36 | ||
| P/B | 1.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.34 |
EPS(TTM)2.42
EY10.19%
EPS(NY)2.56
Fwd EY10.77%
FCF(TTM)1.93
FCFY8.14%
OCF(TTM)2.54
OCFY10.69%
SpS47.44
BVpS22.54
TBVpS-6.02
PEG (NY)1.25
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 1.43% | ||
| ROCE | 9.41% | ||
| ROIC | 5.62% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 21.77% | ||
| OM | 8.67% | ||
| PM (TTM) | 0.68% | ||
| GM | 28.56% | ||
| FCFM | 4.07% |
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%
ROICexcg growth 3Y-12.14%
ROICexcg 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-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.91 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 53.89% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 6.43 | ||
| Cash Conversion | 48.46% | ||
| Profit Quality | 597.92% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.95 |
F-Score5
WACC8.78%
ROIC/WACC0.64
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)42.35%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%34.04%
EPS Next Y7.87%
EPS Next 2Y6.38%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue 1Y (TTM)14.02%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%19.11%
Revenue Next Year9.59%
Revenue Next 2Y6.47%
Revenue Next 3Y4.96%
Revenue Next 5YN/A
EBIT growth 1Y4.62%
EBIT growth 3Y2.73%
EBIT growth 5Y15.49%
EBIT Next Year39.18%
EBIT Next 3Y12.73%
EBIT Next 5YN/A
FCF growth 1Y137.19%
FCF growth 3Y13.04%
FCF growth 5YN/A
OCF growth 1Y82.13%
OCF growth 3Y12.12%
OCF growth 5Y80.77%