Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $5.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 15.45%
• EPS Growth: -488.24%
• Country: US
• Employees: 14,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.89
• Shares Outstanding: 149,714,950
• 10 Day Avg. Volume: 848,144
• 30 Day Avg. Volume: 1,244,379
• PEG Ratio: -0.51
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 9.25
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 4.70
• Enterprise Value/Ebitda: -38.03
• 1Y Price Target: $45.00
• Price Target Upside: 18.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $34.00 ▼(-10.60% Downside)

Resideo Technologies' overall stock score reflects a challenging financial performance with profitability and cash flow issues, offset by positive earnings call highlights and strategic initiatives. Technical analysis indicates mixed signals, with potential short-term volatility. The valuation is a concern due to a negative P/E ratio, suggesting the stock may be overvalued relative to its earnings potential.

Positive Factors

Revenue Growth

Strong revenue growth suggests effective market penetration and product adoption, supporting long-term business expansion and stability.

Gross Margin Expansion

Consistent gross margin expansion indicates improved operational efficiency and pricing power, enhancing profitability over time.

Strategic Focus

Divesting non-core assets allows Resideo to concentrate resources on its core competencies, potentially driving better long-term growth and innovation.

Negative Factors

Profitability Challenges

Sustained profitability issues can hinder reinvestment in growth initiatives and strain financial health, impacting long-term viability.

Cash Flow Issues

Negative cash flows indicate potential liquidity problems, limiting the company's ability to fund operations and growth without external financing.

ERP Implementation Challenges

ERP challenges can disrupt operations and financial management, potentially leading to inefficiencies and increased costs in the medium term.

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 generates revenue through several key streams, primarily from the sale of its products and solutions in the residential sector. The company benefits from a recurring revenue model through subscription services related to its connected home devices, where customers pay for ongoing monitoring and maintenance. Additionally, Resideo partners with various distributors and service providers, allowing it to expand its market reach and enhance product offerings. The integration of hardware and software solutions also creates opportunities for upselling and cross-selling, further bolstering its earnings.

Resideo Technologies Financial Statement Overview

Summary

Resideo Technologies is experiencing strong revenue growth but faces significant profitability and cash flow challenges. The negative net profit margin and return on equity, coupled with cash flow difficulties, highlight operational inefficiencies and financial risks.

Income Statement

Resideo Technologies has shown a significant revenue growth rate of 48.7% in the TTM period, indicating strong top-line expansion. However, the company is facing challenges with profitability, as evidenced by a negative net profit margin of -10.49% and a negative EBIT margin of -7.19%. The gross profit margin remains moderate at 28.84%, but the negative EBITDA margin of -4.65% highlights operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio of 0.76 in the TTM period suggests a moderate level of leverage, which is manageable but slightly higher than previous years. The return on equity is negative at -24.59%, reflecting the net losses incurred. However, the equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

Resideo Technologies is experiencing significant cash flow challenges, with a negative free cash flow growth rate of -442.05% in the TTM period. The operating cash flow to net income ratio is low at 0.14, indicating insufficient cash generation relative to net losses. The free cash flow to net income ratio of 0.80 suggests some ability to cover net losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.43B	6.76B	6.24B	6.37B	5.85B	5.07B
Gross Profit	2.13B	1.90B	1.70B	1.77B	1.58B	1.31B
EBITDA	-264.00M	446.00M	476.00M	566.00M	488.00M	250.00M
Net Income	-640.00M	116.00M	210.00M	283.00M	242.00M	37.00M
Balance Sheet
Total Assets	8.19B	8.20B	6.64B	6.39B	5.85B	5.61B
Cash, Cash Equivalents and Short-Term Investments	345.00M	692.00M	636.00M	326.00M	775.00M	517.00M
Total Debt	3.17B	2.03B	1.45B	1.45B	1.26B	1.16B
Total Liabilities	5.42B	4.89B	3.90B	3.86B	3.60B	3.62B
Stockholders Equity	2.77B	3.31B	2.75B	2.53B	2.25B	1.99B
Cash Flow
Free Cash Flow	-1.33B	364.00M	335.00M	67.00M	252.00M	174.00M
Operating Cash Flow	-1.23B	444.00M	440.00M	152.00M	315.00M	244.00M
Investing Cash Flow	-102.00M	-1.41B	-44.00M	-764.00M	-65.00M	-103.00M
Financing Cash Flow	1.15B	1.03B	-64.00M	170.00M	20.00M	253.00M

Resideo Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REZI, the sentiment is Positive. The current price of 38.03 is above the 20-day moving average (MA) of 35.87, above the 50-day MA of 34.54, and above the 200-day MA of 29.38, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REZI.

Resideo Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	80 Outperform	$1.50B	34.32	25.03%	1.29%	-2.28%	-9.94%
BRC	75 Outperform	$3.88B	20.07	16.69%	1.23%	11.20%	0.71%
MSA	75 Outperform	$6.81B	24.51	23.35%	1.30%	3.31%	2.58%
ADT	69 Neutral	$6.76B	11.78	17.24%	2.73%	4.77%	-22.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARLO	59 Neutral	$1.44B	384.66	3.80%	―	-2.83%	―
REZI	51 Neutral	$5.56B	-8.13	-20.90%	―	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.