Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $4.96B
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.71
• Revenue Growth: 15.45%
• EPS Growth: -488.24%
• Country: US
• Employees: 14,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.50
• Shares Outstanding: 151,247,100
• 10 Day Avg. Volume: 1,259,842
• 30 Day Avg. Volume: 1,330,308
• PEG Ratio: 0.01
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -4.18
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: -59.25
• 1Y Price Target: $49.00
• Price Target Upside: 49.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.93
• Revenue Forecast (FY): $7.74B

• Rating: 56 Neutral
• Price Target: $34.00 ▲(3.69% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weakened financial quality in the latest year (losses, higher leverage, and sharply negative cash flow). Technical trends are supportive and the latest earnings call provided constructive 2026 guidance and operational momentum, but valuation is less supportive due to the negative P/E and lack of dividend yield.

Positive Factors

Revenue and gross-margin momentum

Sustained top-line acceleration combined with expanding gross margin signals improving product mix, pricing power, and operational leverage. These trends underpin durable cash-generation potential and margin resiliency over the next several quarters if management maintains execution and mix trends.

Product innovation and P&S margin expansion

A steady cadence of new, well-received products supports sustainable differentiation and recurring replacement cycles in core channels. Coupled with multi-quarter P&S margin expansion, product innovation strengthens competitive positioning and long-term revenue durability with higher-margin mix.

Synergy realization and cost conversion

Accelerated, measurable synergies reduce structural cost base and validate integration playbook. Realized savings drive sustainable margin tailwinds, improve cash conversion prospects over time, and lower execution risk for future operational improvements across the combined businesses.

Negative Factors

Materially higher leverage

A sharp leap in leverage reduces financial flexibility and magnifies sensitivity to cash-flow volatility. Higher debt raises recurring interest obligations, constrains strategic optionality (M&A, capex), and elevates refinancing risk over the coming 2–6 months if cash conversion does not recover.

Severe cash-flow deterioration

Deep negative operating and free cash flow marks a structural working-capital or operating reset and heightens funding risk. Persistent cash burn can force costly external financing, drain liquidity, or delay investments, making near-term recovery and separation timing critical for stability.

Profitability swung to a loss

A swing to a sizable net loss erodes retained capital and investor flexibility, reducing the company's ability to self-fund growth or absorb shocks. Negative returns and margins weaken credit metrics and could increase cost of capital, pressuring longer-term reinvestment and recovery plans.

Resideo Technologies Business Overview & Revenue Model

Company Description

Resideo Technologies, Inc. develops, manufactures, and sells comfort, residential thermal, and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products & Solutions, and ADI Global Distribution. It offers temperature and humidity control, thermal water, and air solutions; and security panels, sensors, peripherals, wires and cables, communication devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand. In addition, the company distributes security products comprising video, intrusion, and access control products; and smart home, fire, power, audio, ProAV, networking, communication, wire and cable, enterprise connectivity, and structured wiring products to contractors that service non-residential and residential end-users. It sells its products through a network of distributors, original equipment manufacturers, and service providers, as well as retail and online channels. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Resideo makes money mainly by (1) selling products it manufactures or sources under its brands and (2) earning revenue through its distribution operations. Product revenue is generated from shipments of home comfort and control, security, and safety-related hardware (and associated accessories/replacements) sold through professional channels such as contractors and installers, distributors, and retail/e-commerce routes; revenue is recognized from the sale of these physical products, with profitability driven by unit volumes, product mix (e.g., connected/feature-rich controls vs. commodity items), pricing, and manufacturing/sourcing costs. In addition, Resideo’s distribution segment generates revenue by purchasing HVAC and other building-related products (including third-party brands and, in some cases, Resideo-branded items) and reselling them to trade customers; earnings in this segment are primarily driven by gross margin on resale, logistics efficiency, inventory management, and demand from new construction and repair-and-replace activity. Where Resideo offers connected/home automation or monitoring-related services, those offerings can contribute recurring revenue; if specific figures or materiality for such service revenue are not publicly available in the provided context, null.

Resideo Technologies Financial Statement Overview

Summary

Despite re-accelerating revenue growth and modest gross-margin improvement, the latest year shows a sharp deterioration in quality of earnings: a swing to a large net loss, materially higher leverage (debt-to-equity ~1.09), and a significant decline in cash generation with 2025 operating and free cash flow turning deeply negative. These factors elevate funding and execution risk until profitability and cash conversion normalize.

Income Statement

Revenue growth re-accelerated in 2025 (up ~50% YoY), and gross margin improved to ~29.4% (from ~28.1% in 2024), signaling better top-line momentum and mix/price. However, profitability deteriorated sharply: net income swung to a large loss in 2025 (net margin ~-7.1%) versus modest profitability in 2021–2024, and EBITDA margin remained only mid-single to high-single digits (~8.1% in 2025). Overall, strong sales growth is being outweighed by the 2025 earnings collapse and weaker consistency of bottom-line performance.

Balance Sheet

Leverage increased materially: debt-to-equity rose to ~1.09 in 2025 from ~0.61 in 2024 as total debt jumped to ~$3.17B while equity declined. Returns also turned negative in 2025 (return on equity ~-18%), reversing the positive profile seen in 2021–2024. Asset base grew (total assets ~$8.43B), but the combination of higher leverage and negative earnings raises balance-sheet risk and reduces financial flexibility.

Cash Flow

Cash generation weakened significantly in 2025: operating cash flow fell to about -$1.14B and free cash flow to about -$1.25B, versus positive operating and free cash flow in each of 2020–2024. The decline in free cash flow (growth ~-6.07 in 2025) suggests a major working-capital or operating reset and/or elevated cash needs. Despite prior-year stability, the most recent year’s cash burn is a clear negative and heightens near-term funding and execution risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.47B	6.76B	6.24B	6.37B	5.85B
Gross Profit	2.20B	1.90B	1.70B	1.77B	1.58B
EBITDA	-127.00M	446.00M	476.00M	566.00M	488.00M
Net Income	-527.00M	116.00M	210.00M	283.00M	242.00M
Balance Sheet
Total Assets	8.43B	8.20B	6.64B	6.39B	5.85B
Cash, Cash Equivalents and Short-Term Investments	661.00M	692.00M	636.00M	326.00M	775.00M
Total Debt	3.17B	2.03B	1.45B	1.45B	1.26B
Total Liabilities	5.52B	4.89B	3.90B	3.86B	3.60B
Stockholders Equity	2.92B	3.31B	2.75B	2.53B	2.25B
Cash Flow
Free Cash Flow	-1.25B	364.00M	335.00M	67.00M	252.00M
Operating Cash Flow	-1.14B	444.00M	440.00M	152.00M	315.00M
Investing Cash Flow	-39.00M	-1.41B	-44.00M	-764.00M	-65.00M
Financing Cash Flow	1.13B	1.03B	-64.00M	170.00M	20.00M

Resideo Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REZI, the sentiment is Negative. The current price of 32.79 is below the 20-day moving average (MA) of 35.67, below the 50-day MA of 35.94, and below the 200-day MA of 33.46, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 38.28 is Neutral, neither overbought nor oversold. The STOCH value of 31.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REZI.

Resideo Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	78 Outperform	$1.45B	27.53	27.45%	1.29%	-2.28%	-9.94%
MSA	72 Outperform	$6.60B	22.52	21.82%	1.30%	3.31%	2.58%
BRC	71 Outperform	$3.82B	21.28	16.60%	1.23%	11.20%	0.71%
ARLO	71 Outperform	$1.53B	97.67	12.47%	―	-2.83%	―
ADT	70 Outperform	$5.34B	10.53	16.19%	2.73%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REZI	56 Neutral	$4.96B	9.68	-18.10%	―	15.45%	-488.24%

Resideo Technologies Corporate Events

Resideo Updates CEO Transition and Incentive Compensation Terms

On January 6, 2026, Resideo Technologies’ Compensation and Human Capital Management Committee amended a 2024 transition agreement with President and CEO Jay Geldmacher, originally disclosed in November 2024, which was designed to support a smooth leadership transition around his planned retirement. Following the company’s July 30, 2025 announcement that Geldmacher’s retirement would take effect upon completion of the separation of Resideo’s ADI Global Distribution business, the amendment clarifies his eligibility for 2026 annual incentive compensation, providing pro-rated, target-level incentive pay if the CEO transition occurs before December 31, 2026 and full-year, performance-based incentive pay if it occurs on or after that date, while leaving all other terms of the original agreement unchanged.

The most recent analyst rating on (REZI) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Resideo Technologies stock, see the REZI Stock Forecast page.