RESIDEO TECHNOLOGIES INC (REZI) Stock Fundamental Analysis
USA - NYSE:REZI - US76118Y1047 - Common Stock
38.07 USD
+1.36 (+3.7%)
37.8493 USD
-0.22 (-0.58%)
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. There are concerns on the financial health of REZI while its profitability can be described as average. REZI has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of -9.55%, REZI is doing worse than 78.05% of the companies in the same industry.
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's Return On Invested Capital of 7.26% is on the low side compared to the rest of the industry. REZI is outperformed by 63.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REZI is significantly below the industry average of 12.76%.
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
REZI's Profit Margin has improved in the last couple of years.
REZI has a Operating Margin of 8.42%. This is in the lower half of the industry: REZI underperforms 63.41% of its industry peers.
In the last couple of years the Operating Margin of REZI has grown nicely.
The Gross Margin of REZI (28.84%) is comparable to the rest of the 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.
REZI has more 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 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that REZI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.70, 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 5.08. This is a neutral value as REZI would need 5.08 years to pay back of 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.
A Debt/Equity ratio of 0.76 indicates that REZI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, REZI is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.76
WACC9.5%
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.
REZI has a worse Current ratio (1.00) 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.
The Quick ratio of REZI (0.63) is worse than 92.68% 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.
The Revenue has been growing slightly by 6.27% on average over the past years.
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 2Y10.08%
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
With a Price/Earnings ratio of 15.48, REZI is valued correctly.
78.05% of the companies in the same industry are more expensive than REZI, based on the Price/Earnings ratio.
REZI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.90, REZI is valued correctly.
75.61% of the companies in the same industry are more expensive than REZI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. REZI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 13.9 |
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 87.80% 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 78.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.52 | ||
| EV/EBITDA | 8.5 |
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.
A more expensive valuation may be justified as REZI's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)0.61
PEG (5Y)0.95
EPS Next 2Y10.08%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
No dividends for REZI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.07
+1.36 (+3.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.3%
Inst Owner Change5.31%
Ins Owners1.12%
Ins Owner Change78.29%
Market Cap5.66B
Analysts85
Price Target35.7 (-6.23%)
Short Float %4.41%
Short Ratio3.42
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)18.64%
PT rev (3m)42.86%
EPS NQ rev (1m)12.9%
EPS NQ rev (3m)22.22%
EPS NY rev (1m)16.11%
EPS NY rev (3m)16.11%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 13.9 | ||
| P/S | 0.77 | ||
| P/FCF | 14.52 | ||
| P/OCF | 11.68 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.5 |
EPS(TTM)2.46
EY6.46%
EPS(NY)2.74
Fwd EY7.19%
FCF(TTM)2.62
FCFY6.89%
OCF(TTM)3.26
OCFY8.56%
SpS49.74
BVpS17.57
TBVpS-11.08
PEG (NY)0.61
PEG (5Y)0.95
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 | 1.7 |
F-Score6
WACC9.5%
ROIC/WACC0.76
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 2Y10.08%
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 Year39.18%
EBIT Next 3Y12.73%
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%