Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $3.14B
• Dividend Yield: N/A
• Average Volume (3M): 908.50K
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.45
• Revenue Growth: 14.02%
• EPS Growth: -69.91%
• Country: US
• Employees: 14,600
• Sector: Industrials
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): 0.63
• Shares Outstanding: 148,503,540
• 10 Day Avg. Volume: 776,805
• 30 Day Avg. Volume: 908,505
• PEG Ratio: 0.55
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.85
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: $23.33
• Price Target Upside: 13.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $24.00 ▲(16.85%Upside)

Resideo Technologies is performing strongly in revenue growth and operational efficiency, supported by a stable balance sheet and impressive cash flow management. The robust technical indicators suggest a strong bullish trend, although the stock might be overbought. The high P/E ratio indicates potential overvaluation, while the lack of a dividend yield might be a concern for some investors. The earnings call underscores significant growth and effective management strategies despite some challenges, contributing positively to the overall score.

Positive Factors

Product Innovation

REZI is gaining more content spend per household and is ahead with new product introductions.

Revenue and Growth

Revenue outperformed expectations, both businesses grew organically, and gross margins expanded more than expected.

Negative Factors

Growth Targets

Organic growth has been flat to up slightly, well below the mid-single-digit growth targets set by management in 2021.

Tariff Risks

The biggest risk facing REZI is potential tariffs on imports from Mexico, where 50% of manufacturing is based.

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 Technologies generates revenue through the sale of its smart home products and services. The company's revenue streams primarily include the sale of connected devices for home environments, such as thermostats, security systems, and air purifiers. Additionally, Resideo offers professional installation and maintenance services, which contribute to its earnings. The company also benefits from strategic partnerships with major retailers and technology firms, which help expand its market reach and distribution capabilities. By leveraging its expertise in smart home technology, Resideo continues to capitalize on the growing demand for home automation and security solutions.

Resideo Technologies Financial Statement Overview

Summary

Resideo Technologies demonstrates robust revenue growth and solid operational efficiency, with opportunities to enhance profitability and shareholder returns. The company's balance sheet is stable, with a healthy leverage position and a strong equity base. Cash flow generation is a significant strength, supporting future growth initiatives and financial flexibility.

Income Statement

The company's revenue has shown consistent growth over the years, with a TTM revenue of $7.045 billion, indicating strong market demand. Gross profit margin stands at 28.4%, reflecting efficient cost management. However, the TTM net profit margin is relatively low at 1.1%, suggesting room for improvement in converting sales into profit. EBIT and EBITDA margins are moderate at 7.6% and 6.8% respectively, indicating operational efficiency but also highlighting potential areas for increased profitability.

Balance Sheet

The company's financial position is stable with a debt-to-equity ratio of 0.61, indicating a balanced approach to leverage. The return on equity (ROE) is modest at 2.4%, suggesting that the returns for shareholders could be enhanced further. Equity ratio is solid at 41.5%, showing a strong equity base relative to assets. Overall, the balance sheet reflects a stable financial position with potential for improved shareholder returns.

Cash Flow

The TTM free cash flow growth is notable, and the operating cash flow to net income ratio of 4.77 indicates strong cash generation relative to net earnings. The free cash flow to net income ratio is robust at 3.63, highlighting efficient cash conversion. These metrics suggest strong cash flow management, providing the company with the flexibility to reinvest or reduce debt.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.04B	6.76B	6.24B	6.37B	5.85B	5.07B
	Gross Profit
2.00B	1.90B	1.70B	1.77B	1.56B	1.31B
	EBIT
539.00M	520.00M	547.00M	611.00M	401.00M	164.00M
	EBITDA
482.00M	445.00M	518.00M	779.00M	657.00M	251.00M
	Net Income Common Stockholders
79.00M	116.00M	210.00M	283.00M	242.00M	37.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
577.00M	692.00M	636.00M	326.00M	779.00M	517.00M
	Total Assets
8.07B	8.20B	6.64B	6.39B	5.85B	5.61B
	Total Debt
2.03B	2.03B	1.61B	1.42B	1.23B	1.16B
	Net Debt
1.46B	1.34B	977.00M	1.09B	451.00M	645.00M
	Total Liabilities
4.73B	4.89B	3.90B	3.86B	3.60B	3.62B
	Stockholders Equity
3.35B	3.31B	2.75B	2.53B	2.25B	1.99B
Cash Flow		Free Cash Flow
287.00M	364.00M	335.00M	67.00M	252.00M	174.00M
	Operating Cash Flow
377.00M	444.00M	440.00M	152.00M	315.00M	244.00M
	Investing Cash Flow
-1.42B	-1.41B	-44.00M	-764.00M	-65.00M	-103.00M
	Financing Cash Flow
1.02B	1.03B	-64.00M	170.00M	20.00M	253.00M

Resideo Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.54
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 20.54 is below the 20-day moving average (MA) of 20.82, above the 50-day MA of 18.59, and below the 200-day MA of 20.81, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 39.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$1.02B	23.39	27.48%	1.98%	-1.05%	-2.78%
BRC	76 Outperform	$3.28B	17.15	17.80%	1.38%	8.62%	3.59%
REZI	76 Outperform	$3.14B	53.33	2.58%	―	14.02%	-69.91%
ARLO	73 Outperform	$1.76B	―	-21.34%	―	0.27%	-18.75%
ADT	72 Outperform	$6.88B	14.06	16.26%	2.68%	-5.44%	-16.05%
BCO	68 Neutral	$3.55B	22.61	54.50%	1.21%	1.97%	41.88%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

Resideo Technologies Corporate Events

Resideo Technologies Holds Annual Shareholder Meeting

Resideo Technologies, Inc. held its Annual Meeting of Shareholders on June 4, 2025, where several key proposals were voted on. The meeting included the election of directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent registered public accounting firm for 2025. The results showed strong support for the board’s nominees and a preference for annual advisory votes on executive compensation.

The most recent analyst rating on (REZI) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Resideo Technologies stock, see the REZI Stock Forecast page.