RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - NYSE:REZI - US76118Y1047 - Common Stock
42.185 USD
+0.76 (+1.82%)
Taking everything into account, REZI scores 3 out of 10 in our fundamental rating. REZI was compared to 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 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.
In the past year REZI had a positive cash flow from operations.
In the past 5 years REZI has always been profitable.
REZI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -9.55%, REZI is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
The Return On Equity of REZI (-31.10%) is worse than 80.49% of its industry peers.
With a Return On Invested Capital value of 7.26%, REZI is not doing good in the industry: 60.98% 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 12.50%.
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
REZI's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.42%, REZI is not doing good in the industry: 60.98% 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 28.84%, 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 | 8.42% | ||
| 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
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.
Compared to 5 years ago, REZI has more shares outstanding
Compared to 1 year ago, REZI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that REZI is in the distress zone and has some risk of bankruptcy.
REZI has a Altman-Z score of 1.75. This is amonst the worse of the industry: REZI underperforms 85.37% 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 of 5.08. This is comparable to the rest of the industry: REZI outperforms 43.90% of 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.
REZI's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. REZI is outperformed by 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.85
WACC8.51%
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.
The Current ratio of REZI (1.00) is worse than 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
REZI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.24%, which is quite impressive.
Measured over the past years, REZI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.35% on average per year.
Looking at the last year, REZI shows a quite strong growth in Revenue. The Revenue has grown by 20.00% in the last year.
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)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
Based on estimates for the next years, REZI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
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
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
REZI is valuated rather expensively with a Price/Earnings ratio of 17.15.
REZI's Price/Earnings ratio is a bit cheaper when compared to the industry. REZI is cheaper than 65.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. REZI is valued slightly cheaper when compared to this.
REZI is valuated correctly with a Price/Forward Earnings ratio of 13.79.
Based on the Price/Forward Earnings ratio, REZI is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
REZI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REZI indicates a somewhat cheap valuation: REZI is cheaper than 78.05% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, REZI is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.09 | ||
| EV/EBITDA | 9.12 |
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)0.68
PEG (5Y)1.05
EPS Next 2Y16.36%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:REZI (11/5/2025, 1:55:03 PM)
42.185
+0.76 (+1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.75%
Inst Owner Change0.96%
Ins Owners1.11%
Ins Owner Change78.23%
Market Cap6.28B
Revenue(TTM)7.40B
Net Income(TTM)-813000000
Analysts85
Price Target42.33 (0.34%)
Short Float %2.75%
Short Ratio2.02
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%
EPS NQ rev (3m)19.66%
EPS NY rev (1m)0%
EPS NY rev (3m)16.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 13.79 | ||
| P/S | 0.85 | ||
| P/FCF | 16.09 | ||
| P/OCF | 12.94 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)2.46
EY5.83%
EPS(NY)3.06
Fwd EY7.25%
FCF(TTM)2.62
FCFY6.21%
OCF(TTM)3.26
OCFY7.73%
SpS49.74
BVpS17.57
TBVpS-11.08
PEG (NY)0.68
PEG (5Y)1.05
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 | 1.75 |
F-Score6
WACC8.51%
ROIC/WACC0.85
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%
RESIDEO TECHNOLOGIES INC / REZI FAQ
Can you provide the ChartMill fundamental rating for RESIDEO TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 3 / 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 17.15 and the Price/Book (PB) ratio is 2.4.
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.