RESIDEO TECHNOLOGIES INC (REZI)
US76118Y1047 - Common Stock
We assign a fundamental rating of 3 out of 10 to REZI. REZI was compared to 43 industry peers in the Building Products industry. REZI may be in some trouble as it scores bad on both profitability and health. REZI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year REZI was profitable.
REZI had a positive operating cash flow in the past year.
Each year in the past 5 years REZI has been profitable.
Each year in the past 5 years REZI had a positive operating cash flow.
1.2 Ratios
REZI has a worse Return On Assets (3.01%) than 76.74% of its industry peers.
REZI has a worse Return On Equity (7.08%) than 74.42% of its industry peers.
REZI's Return On Invested Capital of 7.67% is on the low side compared to the rest of the industry. REZI is outperformed by 60.47% of its industry peers.
REZI had an Average Return On Invested Capital over the past 3 years of 8.46%. This is below the industry average of 13.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 7.08% | ||
| ROIC | 7.67% |
ROA(3y)3.91%
ROA(5y)2.62%
ROE(3y)9.86%
ROE(5y)6.74%
ROIC(3y)8.46%
ROIC(5y)7.33%
1.3 Margins
REZI's Profit Margin of 3.17% is on the low side compared to the rest of the industry. REZI is outperformed by 79.07% of its industry peers.
In the last couple of years the Profit Margin of REZI has declined.
REZI has a Operating Margin of 9.45%. This is in the lower half of the industry: REZI underperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of REZI has declined.
The Gross Margin of REZI (27.12%) is worse than 60.47% of its industry peers.
REZI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.45% | ||
| PM (TTM) | 3.17% | ||
| GM | 27.12% |
OM growth 3Y10.88%
OM growth 5Y-1.77%
PM growth 3Y66.44%
PM growth 5Y-16.7%
GM growth 3Y1.39%
GM growth 5Y-1.7%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for REZI has been increased compared to 5 years ago.
The debt/assets ratio for REZI has been reduced compared to a year ago.
2.2 Solvency
REZI has an Altman-Z score of 2.18. 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.
Looking at the Altman-Z score, with a value of 2.18, REZI is doing worse than 81.40% of the companies in the same industry.
REZI has a debt to FCF ratio of 4.14. This is a neutral value as REZI would need 4.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.14, REZI is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.50 indicates that REZI is somewhat dependend on debt financing.
REZI has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.71
WACC10.77%
2.3 Liquidity
REZI has a Current Ratio of 1.93. This is a normal value and indicates that REZI is financially healthy and should not expect problems in meeting its short term obligations.
REZI has a Current ratio of 1.93. This is in the lower half of the industry: REZI underperforms 62.79% of its industry peers.
A Quick Ratio of 1.26 indicates that REZI should not have too much problems paying its short term obligations.
REZI has a Quick ratio (1.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for REZI have decreased strongly by -11.92% in the last year.
The earnings per share for REZI have been decreasing by -15.53% on average. This is quite bad
REZI shows a decrease in Revenue. In the last year, the revenue decreased by -3.65%.
Measured over the past years, REZI shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
EPS 1Y (TTM)-11.92%
EPS 3Y0.63%
EPS 5Y-15.53%
EPS growth Q2Q20.51%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.17%
Revenue growth 5Y5.28%
Revenue growth Q2Q-4.07%
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 7.99% on average per year.
REZI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.40% yearly.
EPS Next Y3.26%
EPS Next 2Y9.2%
EPS Next 3Y7.99%
EPS Next 5YN/A
Revenue Next Year-1.07%
Revenue Next 2Y0.79%
Revenue Next 3Y1.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 12.96, the valuation of REZI can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of REZI indicates a rather cheap valuation: REZI is cheaper than 83.72% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. REZI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.40, the valuation of REZI can be described as very reasonable.
93.02% 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 (20.31), we can say REZI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REZI is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REZI is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 5.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REZI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.98
PEG (5Y)N/A
EPS Next 2Y9.2%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RESIDEO TECHNOLOGIES INC
NYSE:REZI (5/15/2024, 9:20:51 AM)
22.03
+0.14 (+0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 7.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.45% | ||
| PM (TTM) | 3.17% | ||
| GM | 27.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.92%
EPS 3Y0.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y7.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y