RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
NYSE:REZI - New York Stock Exchange, Inc. - US76118Y1047 - Common Stock - Currency: USD
Taking everything into account, REZI scores 4 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on REZI.
1. Profitability
1.1 Basic Checks
In the past year REZI was profitable.
REZI had a positive operating cash flow in the past year.
REZI had positive earnings in each of the past 5 years.
Each year in the past 5 years REZI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.59%, REZI is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 1.43%, REZI is doing worse than 75.61% of the companies in the same industry.
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 13.01%.
| 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
The Profit Margin of REZI (0.68%) is worse than 80.49% of its industry peers.
In the last couple of years the Profit Margin of REZI has grown nicely.
With a Operating Margin value of 8.67%, REZI is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of REZI has grown nicely.
Looking at the Gross Margin, with a value of 28.56%, REZI is in line with its industry, outperforming 41.46% of the companies in the same industry.
REZI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.67% | ||
| 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.
The number of shares outstanding for REZI has been increased compared to 1 year ago.
REZI has more shares outstanding than it did 5 years ago.
REZI has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.90, REZI is not doing good in the industry: 78.05% 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.
The Debt to FCF ratio of REZI (6.91) is worse than 70.73% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that REZI is somewhat dependend on debt financing.
REZI's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. REZI outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.91 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.66
WACC8.54%
2.3 Liquidity
REZI has a Current Ratio of 1.94. 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 Current ratio value of 1.94, REZI perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
REZI has a Quick Ratio of 1.16. 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 1.16, REZI is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
REZI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.35%, 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 14.02% in the past year. This is quite good.
Measured over the past years, REZI shows a small growth in Revenue. The Revenue has been growing by 6.27% on average per year.
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
REZI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.80% yearly.
The Revenue is expected to grow by 4.96% on average over the next years.
EPS Next Y-1.05%
EPS Next 2Y4.94%
EPS Next 3Y4.8%
EPS Next 5YN/A
Revenue Next Year9.27%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
REZI is valuated reasonably with a Price/Earnings ratio of 8.79.
Based on the Price/Earnings ratio, REZI is valued cheaper than 95.12% of the companies in the same industry.
REZI is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.55 indicates a reasonable valuation of REZI.
92.68% of the companies in the same industry are more expensive than REZI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of REZI to the average of the S&P500 Index (20.99), we can say REZI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than REZI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, REZI is valued cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y4.94%
EPS Next 3Y4.8%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.28
-0.23 (-1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change-3.76%
Ins Owners1.89%
Ins Owner Change63.37%
Market Cap3.16B
Analysts76
Price Target22.44 (5.45%)
Short Float %2.47%
Short Ratio2.79
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)-22.35%
PT rev (3m)-22.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.8%
EPS NY rev (1m)-5.9%
EPS NY rev (3m)-10.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 8.55 | ||
| P/S | 0.45 | ||
| P/FCF | 11.01 | ||
| P/OCF | 8.38 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.91 |
EPS(TTM)2.42
EY11.37%
EPS(NY)2.49
Fwd EY11.7%
FCF(TTM)1.93
FCFY9.08%
OCF(TTM)2.54
OCFY11.93%
SpS47.44
BVpS22.54
TBVpS-6.02
PEG (NY)N/A
PEG (5Y)0.54
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 | 1.9 |
F-Score5
WACC8.54%
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)42.35%
EPS 3Y11.51%
EPS 5Y16.35%
EPS Q2Q%34.04%
EPS Next Y-1.05%
EPS Next 2Y4.94%
EPS Next 3Y4.8%
EPS Next 5YN/A
Revenue 1Y (TTM)14.02%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%19.11%
Revenue Next Year9.27%
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 Year39.6%
EBIT Next 3Y17.76%
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%