Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $4.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• 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: 3,069,534
• 30 Day Avg. Volume: 1,823,066
• 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: 2.03
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 4.70
• Enterprise Value/Ebitda: -38.03
• 1Y Price Target: $44.00
• Price Target Upside: 33.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.78
• Revenue Forecast (FY): $7.50B

• Rating: 49 Neutral
• Price Target: $31.00 ▼(-6.09% Downside)

Resideo Technologies' stock score is primarily impacted by its strong revenue growth and positive earnings call guidance. However, significant challenges in profitability, cash flow, and technical indicators weigh heavily on the overall score. The negative P/E ratio further reflects the financial difficulties the company is facing.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory in market reach and product adoption, supporting long-term business expansion.

Cash Flow Management

Efficient cash generation enhances financial flexibility, allowing for strategic investments and resilience against economic fluctuations.

Product Innovation

Innovation in product offerings strengthens competitive positioning and drives future revenue growth through enhanced customer value.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment capabilities and shareholder returns, impacting long-term financial health.

ERP Implementation Challenges

ERP challenges can disrupt operations and cash flow, affecting efficiency and potentially delaying strategic initiatives.

HVAC Market Softness

Decline in HVAC revenue reflects market softness, which could pressure margins and slow growth in a key segment.

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 multiple streams, primarily from the sale of its products and services. The Products & Solutions segment includes revenue from the sale of smart home products, thermostats, security systems, and HVAC controls, which are sold through various distribution channels including retail, wholesalers, and direct to consumers. Additionally, the Services segment contributes to revenue through subscription-based services, maintenance contracts, and monitoring services for security systems. Key partnerships with retailers, distributors, and technology companies enhance Resideo's market reach and customer access, further driving revenue. The company also benefits from recurring revenue through ongoing service agreements and software subscriptions, which provide a stable income stream that complements its product sales.

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: Negative
• Last Price: 33.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 33.01 is below the 20-day moving average (MA) of 38.81, below the 50-day MA of 39.93, and above the 200-day MA of 26.50, indicating a neutral trend. The MACD of -2.60 indicates Positive momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 20.27 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	77 Outperform	$1.44B	32.85	25.03%	1.30%	-2.28%	-9.94%
MSA	70 Outperform	$6.12B	22.02	23.35%	1.36%	3.31%	2.58%
ADT	70 Outperform	$6.77B	11.79	17.24%	2.71%	4.77%	-22.78%
BRC	68 Neutral	$3.53B	19.03	16.76%	1.29%	12.84%	-3.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARLO	59 Neutral	$1.50B	401.70	3.80%	―	-2.83%	―
REZI	49 Neutral	$4.94B	―	-20.90%	―	15.45%	-488.24%

Resideo Technologies Corporate Events

Resideo Technologies’ Earnings Call: Record Highs and Strategic Challenges

Resideo Technologies’ recent earnings call painted a picture of balanced optimism, showcasing significant achievements in financial performance and product innovation, while also addressing challenges in ERP implementation and a sluggish HVAC market.

Resideo Technologies Reports Strong Q3 2025 Results

Resideo Technologies, Inc. is a global leader in manufacturing, developing, and distributing technology-driven sensing and controls products and solutions for residential and commercial markets, known for its strong presence in home safety and security products.

Resideo Technologies Ends Agreement with Honeywell

On August 13, 2025, Resideo Technologies, Inc. completed a transaction with Honeywell International Inc. to accelerate and eliminate all future monetary obligations under the Indemnification and Reimbursement Agreement, initially entered into during Resideo’s spin-off from Honeywell in 2018. This involved a one-time cash payment of $1.59 billion to Honeywell, terminating the agreement and eliminating Resideo’s obligation to make annual payments of up to $140 million through 2043, significantly impacting the company’s financial commitments and operational flexibility.

The most recent analyst rating on (REZI) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Resideo Technologies stock, see the REZI Stock Forecast page.

Resideo Technologies’ Earnings Call Highlights Robust Growth

Resideo Technologies’ recent earnings call painted a picture of robust financial health and strategic success, despite facing challenges in certain segments. The company reported record-breaking financial metrics, including net revenue, adjusted EBITDA, and EPS, all surpassing expectations. This positive sentiment, coupled with strategic initiatives, positions Resideo for promising future growth.