Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $4.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 64.3
• Beta (1Y): 1.39
• Revenue Growth: 20.00%
• EPS Growth: -547.75%
• Country: US
• Employees: 14,600
• Sector: Industrials
• Sector Strength: 78
• Industry: Security & Protection Services
• EPS (TTM): 0.66
• Shares Outstanding: 148,763,400
• 10 Day Avg. Volume: 2,318,606
• 30 Day Avg. Volume: 1,651,660
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: -15.55
• 1Y Price Target: $31.75
• Price Target Upside: -0.13% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $36.00 ▲(13.24% Upside)

Resideo Technologies' strong technical momentum and positive earnings call are the most significant factors driving the score. The termination of the Honeywell agreement further boosts financial flexibility. However, the negative P/E ratio and profitability challenges weigh on the overall score.

Positive Factors

Earnings Performance

The company continues to execute consistently, with recent results exceeding guidance and showing strong organic revenue growth.

Structural Changes

The removal of a structural overhang, specifically the indemnification agreement, is a positive factor for REZI.

Value Unlock

The planned separation of ADI Global is seen as a catalyst for unlocking value, aligning with higher peer valuations.

Negative Factors

Market Perception

The market continues to underappreciate REZI's strong continued execution and potential value unlock with the planned spin-off.

Resideo Technologies Business Overview & Revenue Model

Company Description

Resideo Technologies, Inc. is a global provider of technology-driven solutions for the heating, ventilation, air conditioning, and security markets. The company operates primarily in two segments: Products & Solutions and Services. Resideo offers a variety of core products including smart home devices, security systems, and HVAC controls, aimed at enhancing home comfort and security for consumers and businesses alike. With a focus on innovation and connectivity, Resideo is dedicated to delivering integrated solutions that improve the quality of life for its customers.

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 shows moderate revenue growth and strong cash flow management, but faces profitability challenges with a negative net income. The balance sheet reflects a balanced leverage position and a solid equity base, providing financial stability.

Income Statement

Resideo Technologies shows a moderate revenue growth rate of 5.03% in the TTM period, indicating a positive trajectory. However, the company faces challenges with profitability, as evidenced by a negative net income and a low net profit margin of 1.12%. The gross profit margin is stable at 28.37%, but the EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is 0.61, indicating a balanced leverage position. The return on equity is low at 2.38%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 30.70%, suggesting a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

Resideo Technologies demonstrates strong cash flow management with a significant free cash flow growth rate of 35.89% in the TTM period. The operating cash flow to net income ratio is 0.24, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.76 highlights the company's ability to convert earnings into cash, despite the negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.40B	6.76B	6.24B	6.37B	5.85B	5.07B
Gross Profit	2.13B	1.90B	1.70B	1.77B	1.56B	1.31B
EBITDA	-344.00M	445.00M	518.00M	779.00M	657.00M	251.00M
Net Income	-776.00M	116.00M	210.00M	283.00M	242.00M	37.00M
Balance Sheet
Total Assets	8.52B	8.20B	6.64B	6.39B	5.85B	5.61B
Cash, Cash Equivalents and Short-Term Investments	753.00M	692.00M	636.00M	326.00M	779.00M	517.00M
Total Debt	1.98B	2.03B	1.61B	1.42B	1.23B	1.16B
Total Liabilities	5.90B	4.89B	3.90B	3.86B	3.60B	3.62B
Stockholders Equity	2.61B	3.31B	2.75B	2.53B	2.25B	1.99B
Cash Flow
Free Cash Flow	390.00M	364.00M	335.00M	67.00M	252.00M	174.00M
Operating Cash Flow	485.00M	444.00M	440.00M	152.00M	315.00M	244.00M
Investing Cash Flow	-96.00M	-1.41B	-44.00M	-764.00M	-65.00M	-103.00M
Financing Cash Flow	-54.00M	1.03B	-64.00M	170.00M	20.00M	253.00M

Resideo Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.79
• 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 31.79 is above the 20-day moving average (MA) of 27.90, above the 50-day MA of 24.74, and above the 200-day MA of 22.01, indicating a bullish trend. The MACD of 2.21 indicates Negative momentum. The RSI at 69.99 is Neutral, neither overbought nor oversold. The STOCH value of 83.72 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	79 Outperform	$1.09B	24.83	27.48%	1.68%	-1.05%	-2.78%
ADT	78 Outperform	$7.22B	13.00	17.13%	2.49%	3.80%	-3.18%
BRC	77 Outperform	$3.42B	17.88	17.80%	1.31%	8.62%	3.59%
REZI	75 Outperform	$4.67B	64.31	-26.27%	―	20.00%	-547.75%
BCO	67 Neutral	$4.59B	29.52	56.23%	0.90%	2.17%	25.34%
ARLO	65 Neutral	$1.72B	―	-6.45%	―	-1.75%	68.19%
Sector *	64 Neutral	$10.78B	16.39	6.48%	2.08%	2.65%	-16.28%

Resideo Technologies Corporate Events

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.

Resideo Technologies Ends Agreement with Honeywell

On July 30, 2025, Resideo Technologies announced a definitive agreement with Honeywell International to terminate their Indemnification and Reimbursement Agreement, originally established in 2018. Resideo will make a one-time cash payment of $1.59 billion to Honeywell, eliminating future annual payments and associated covenants, which is expected to enhance Resideo’s financial flexibility and improve profitability. The termination is anticipated to be accretive to Resideo’s adjusted earnings per share and free cash flow. Additionally, Resideo plans to finance this payment through a combination of cash-on-hand and new senior secured debt financing. Resideo also announced its intention to spin off its ADI Global Distribution business, creating two independent public companies.

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.

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.