RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - NYSE:REZI - US76118Y1047 - Common Stock
42.13 USD
-0.31 (-0.73%)
42.13 USD
0 (0%)
Overall REZI gets a fundamental rating of 3 out of 10. We evaluated REZI 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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years REZI has 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.
With a Return On Equity value of -31.10%, REZI is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
REZI has a worse Return On Invested Capital (7.26%) than 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REZI is significantly below the industry average of 12.74%.
The 3 year average ROIC (6.84%) for REZI is below the current ROIC(7.26%), indicating increased profibility in the last year.
| 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
In the last couple of years the Profit Margin of REZI has grown nicely.
REZI has a worse Operating Margin (8.42%) than 60.98% of its industry peers.
REZI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 28.84%, REZI perfoms like the industry average, 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REZI 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
Based on the Altman-Z score of 1.77, we must say that REZI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, REZI is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
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 46.34% 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 | 1.77 |
ROIC/WACC0.79
WACC9.21%
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 87.80% of its industry peers.
A Quick Ratio of 0.63 indicates that REZI may have some problems paying 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
The Earnings Per Share has grown by an impressive 24.24% over the past year.
REZI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.35% yearly.
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
The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
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
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.
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
REZI is valuated rather expensively with a Price/Earnings ratio of 17.13.
Based on the Price/Earnings ratio, REZI is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.70, REZI is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.77 indicates a correct valuation of REZI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REZI indicates a somewhat cheap valuation: REZI is cheaper than 70.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.15. REZI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
REZI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REZI is cheaper than 82.93% of the companies in the same industry.
REZI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REZI is cheaper than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 9.3 |
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.
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
No dividends for REZI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.13
-0.31 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.75%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change78.23%
Market Cap6.27B
Analysts85
Price Target42.33 (0.47%)
Short Float %3.67%
Short Ratio2.31
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)-0.7%
EPS NQ rev (3m)21.37%
EPS NY rev (1m)0%
EPS NY rev (3m)16.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 13.77 | ||
| P/S | 0.85 | ||
| P/FCF | 16.07 | ||
| P/OCF | 12.92 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.3 |
EPS(TTM)2.46
EY5.84%
EPS(NY)3.06
Fwd EY7.26%
FCF(TTM)2.62
FCFY6.22%
OCF(TTM)3.26
OCFY7.74%
SpS49.74
BVpS17.57
TBVpS-11.08
PEG (NY)0.68
PEG (5Y)1.05
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%
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-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 | 1.77 |
F-Score6
WACC9.21%
ROIC/WACC0.79
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%