Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $3.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 62.1
• Beta (1Y): 1.47
• Revenue Growth: 14.02%
• EPS Growth: -69.91%
• Country: US
• Employees: 14,600
• Sector: Industrials
• Sector Strength: 93
• Industry: Security & Protection Services
• EPS (TTM): 0.63
• Shares Outstanding: 148,503,540
• 10 Day Avg. Volume: 921,337
• 30 Day Avg. Volume: 1,093,266
• PEG Ratio: -0.91
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.05
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 2.10
• 1Y Price Target: $26.25
• Price Target Upside: -7.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $27.00 ▼(-5.33%Downside)

Resideo Technologies' strong financial performance and positive technical indicators are major strengths, supporting the stock's high score. Although the valuation suggests a high P/E ratio, the company's effective management and strategic initiatives, as highlighted in the earnings call, provide confidence in future growth. The recent executive appointment further strengthens its leadership team.

Positive Factors

Analyst Confidence

Analyst's price target increased to $24, highlighting confidence in REZI's performance and potential upside.

Customer Demand

Customer demand at both ADI and P&S remained healthy, with no material signs of weakness.

Revenue Performance

Revenue outperformed expectations, with both businesses growing organically and gross margins expanding more than anticipated.

Negative Factors

Tariff Impact

Despite being more insulated and resilient, REZI faces uncertainty due to tariffs, which could impact the hardware sector.

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. Overall, Resideo Technologies is well-positioned in the Security & Protection Services industry, with potential for further financial improvements.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.76B	6.24B	6.37B	5.85B	5.07B
Gross Profit	1.90B	1.70B	1.77B	1.56B	1.31B
EBITDA	445.00M	518.00M	779.00M	657.00M	251.00M
Net Income	116.00M	210.00M	283.00M	242.00M	37.00M
Balance Sheet
Total Assets	8.20B	6.64B	6.39B	5.85B	5.61B
Cash, Cash Equivalents and Short-Term Investments	692.00M	636.00M	326.00M	779.00M	517.00M
Total Debt	2.03B	1.61B	1.42B	1.23B	1.16B
Total Liabilities	4.89B	3.90B	3.86B	3.60B	3.62B
Stockholders Equity	3.31B	2.75B	2.53B	2.25B	1.99B
Cash Flow
Free Cash Flow	364.00M	335.00M	67.00M	252.00M	174.00M
Operating Cash Flow	444.00M	440.00M	152.00M	315.00M	244.00M
Investing Cash Flow	-1.41B	-44.00M	-764.00M	-65.00M	-103.00M
Financing Cash Flow	1.03B	-64.00M	170.00M	20.00M	253.00M

Resideo Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 28.52 is above the 20-day moving average (MA) of 24.23, above the 50-day MA of 22.39, and above the 200-day MA of 21.43, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 80.34 is Negative, neither overbought nor oversold. The STOCH value of 76.90 is Neutral, 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	79 Outperform	$1.11B	25.27	27.48%	1.67%	-1.05%	-2.78%
BRC	77 Outperform	$3.35B	17.49	17.80%	1.35%	8.62%	3.59%
ADT	76 Outperform	$6.95B	12.52	17.13%	2.63%	3.80%	-3.18%
REZI	76 Outperform	$3.69B	62.10	2.58%	―	14.02%	-69.91%
ARLO	73 Outperform	$1.69B	―	-21.34%	―	0.27%	-18.75%
BCO	72 Outperform	$3.77B	24.06	54.50%	1.11%	1.97%	41.88%
Sector *	67 Neutral	€8.25B	20.66	6.46%	2.83%	1.83%	-39.96%

Resideo Technologies Corporate Events

Resideo Appoints Jeffrey Kutz as Chief Accounting Officer

On July 17, 2025, Resideo Technologies, Inc. announced the appointment of Jeffrey Kutz as the Senior Vice President and Chief Accounting Officer, effective July 21, 2025. This strategic move follows Kutz’s extensive experience in financial roles, most recently at Quaker Chemical Corporation and Air Products and Chemicals, Inc. His appointment is expected to strengthen Resideo’s financial leadership, with a comprehensive compensation package reflecting the company’s commitment to attracting top talent.

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.

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.