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 42 industry peers in the Building Products industry. REZI has a medium profitability rating, but doesn't score so well on its financial health evaluation. REZI may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years REZI always reported a positive cash flow from operatings.
1.2 Ratios
REZI has a worse Return On Assets (0.59%) than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 1.43%, REZI is doing worse than 76.19% of the companies in the same industry.
REZI has a worse Return On Invested Capital (5.62%) than 73.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REZI is significantly below the industry average of 12.70%.
| 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
With a Profit Margin value of 0.68%, REZI is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of REZI has grown nicely.
REZI has a worse Operating Margin (8.67%) than 66.67% of its industry peers.
REZI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.56%, REZI is in line with its industry, outperforming 40.48% of the companies in the same industry.
In the last couple of years the Gross Margin of REZI has grown nicely.
| 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.
The number of shares outstanding for REZI has been increased compared to 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.
Looking at the Altman-Z score, with a value of 1.90, REZI is doing worse than 80.95% of the companies in the same industry.
The Debt to FCF ratio of REZI is 6.91, which is on the high side as it means it would take REZI, 6.91 years of fcf income to pay off all of its debts.
REZI has a Debt to FCF ratio of 6.91. This is in the lower half of the industry: REZI underperforms 66.67% of its industry peers.
REZI has a Debt/Equity ratio of 0.59. This is a neutral value indicating REZI is somewhat dependend on debt financing.
REZI has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: REZI outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 6.91 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.63
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.94 indicates that REZI should not have too much problems paying its short term obligations.
REZI has a Current ratio (1.94) which is in line with its industry peers.
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.
REZI's Quick ratio of 1.16 is in line compared to the rest of the industry. REZI outperforms 45.24% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 6.08% on average over the next years.
The Revenue is expected to grow by 4.96% on average over the next years.
EPS Next Y7.87%
EPS Next 2Y6.38%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y6.47%
Revenue Next 3Y4.96%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
REZI is valuated reasonably with a Price/Earnings ratio of 8.93.
92.86% of the companies in the same industry are more expensive than REZI, based on the Price/Earnings ratio.
REZI is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.45, the valuation of REZI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REZI indicates a rather cheap valuation: REZI is cheaper than 95.24% of the companies listed in the same industry.
REZI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
REZI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REZI is cheaper than 97.62% of the companies in the same industry.
88.10% of the companies in the same industry are more expensive than REZI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 5.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)0.55
EPS Next 2Y6.38%
EPS Next 3Y6.08%
5. Dividend
5.1 Amount
REZI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:REZI (6/9/2025, 2:06:45 PM)
21.605
+0.45 (+2.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.76%
Inst Owner Change1.85%
Ins Owners1.89%
Ins Owner Change65.55%
Market Cap3.21B
Analysts76
Price Target24.99 (15.67%)
Short Float %2.59%
Short Ratio3.01
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)11.36%
PT rev (3m)-13.53%
EPS NQ rev (1m)3.33%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)9.01%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.46 | ||
| P/FCF | 11.18 | ||
| P/OCF | 8.51 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.85 |
EPS(TTM)2.42
EY11.2%
EPS(NY)2.56
Fwd EY11.84%
FCF(TTM)1.93
FCFY8.95%
OCF(TTM)2.54
OCFY11.75%
SpS47.44
BVpS22.54
TBVpS-6.02
PEG (NY)1.13
PEG (5Y)0.55
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
WACC8.89%
ROIC/WACC0.63
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 Y7.87%
EPS Next 2Y6.38%
EPS Next 3Y6.08%
EPS Next 5YN/A
Revenue 1Y (TTM)14.02%
Revenue growth 3Y4.97%
Revenue growth 5Y6.27%
Sales Q2Q%19.11%
Revenue Next Year9.59%
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 Year39.18%
EBIT Next 3Y12.73%
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%