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Resideo Technologies
(NYSE:REZI)
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Rating:47Neutral
Price Target:
$30.00
▼(-25.52% Downside)
Action:Reiterated
Date:06/25/26
The score is held down primarily by weak financial performance—losses, higher leverage, and significant recent cash burn—along with a bearish technical trend below key moving averages. The latest earnings call and recent financing actions provide partial offset via reaffirmed guidance, strong Q1 adjusted results, and steps to support the ADI separation, but these positives are tempered by inflationary cost pressures and elevated cash usage.
Positive Factors
Diversified business model: Products & ADI distribution
Resideo combines a branded manufacturing/products business with a large professional distribution platform (ADI). This durable mix diversifies revenue drivers, pairs product innovation with wide channel reach, and creates recurring replacement and aftermarket demand that supports stable long-term sales.
Negative Factors
Elevated leverage and reduced flexibility
Debt roughly doubled versus prior years leaving leverage near parity with equity and materially higher than 2023–24. That elevated debt load increases interest and covenant sensitivity, limits strategic optionality, and raises refinancing and liquidity risk during the spin-off and any downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model: Products & ADI distribution
Resideo combines a branded manufacturing/products business with a large professional distribution platform (ADI). This durable mix diversifies revenue drivers, pairs product innovation with wide channel reach, and creates recurring replacement and aftermarket demand that supports stable long-term sales.
Read all positive factors
Resideo Technologies Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profit made after deducting the cost of goods sold for each business segment. This highlights the profitability of different parts of the company and can indicate where the company is most competitive.
Shows the profit made after deducting the cost of goods sold for each business segment. This highlights the profitability of different parts of the company and can indicate where the company is most competitive.
Data provided by:
The Fly
The FlyResideo Technologies (REZI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.69B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth8.08%
EPS Growth-1039.66%
CountryUS
Employees14,640
SectorIndustrials
Sector Strength72
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-3.58
Shares Outstanding151,426,250
10 Day Avg. Volume1,267,579
30 Day Avg. Volume1,522,235
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.79
Price to Sales (P/S)0.70
P/FCF Ratio-4.18
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda-128.05
Forecast
1Y Price Target
$48.00Price Target Upside19.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.9
Revenue Forecast (FY)$7.76B
Resideo Technologies Business Overview & Revenue Model
Company Description
Resideo Technologies, Inc. develops, manufactures, sells, and distributes comfort, energy management, and safety and security solutions in the United States, Europe, and internationally. The company operates through Products and Solutions and ADI ...
How the Company Makes Money
Resideo makes money primarily by (1) selling products it designs and manufactures and (2) earning distribution revenue through its ADI Global Distribution business.
1) Products and Solutions revenue (product sales + select software/services)
- Ha...
Resideo Technologies Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call showcased solid execution and multiple clear positives — top-line growth (+8% revenue), strong adjusted EBITDA expansion (+28%), product segment outperformance, digital/e-commerce gains, and tangible progress toward the ADI spinoff — while also acknowledging meaningful near-term headwinds from freight/fuel inflation, modest margin pressure, memory supply risk and elevated cash usage tied to separation activities. Management communicated plans to raise prices, capture cost synergies (particularly at ADI), and reiterated the 2026 outlook, which supports a constructive view despite the highlighted risks.Positive Updates
Top-Line Growth
Total net revenue of over $1.9 billion, up 8% year-over-year (including ~2% favorable currency impact), exceeding the high end of the outlook range.
Negative Updates
Company Gross Margin Pressure
Total company gross margin was 28.8%, down 10 basis points year-over-year, primarily due to higher fuel/freight costs affecting both segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth
Total net revenue of over $1.9 billion, up 8% year-over-year (including ~2% favorable currency impact), exceeding the high end of the outlook range.
Read all positive updates
Company Guidance
Resideo reaffirmed its 2026 outlook and provided Q2 guidance of total company net revenue $1.916–$1.940 billion, adjusted EBITDA $216–$230 million and fully diluted EPS $0.71–$0.75 (with one fewer sales day vs. prior-year Q2); management expects both ADI and Products & Solutions to deliver year‑over‑year net revenue growth in 2026 at approximately the same rate, with total company gross margin percentage roughly flat year‑over‑year (Products & Solutions forecast to expand gross margin % more than ADI) and the year weighted to the second half due primarily to a shift in ADI orders. The outlook assumes pricing actions beginning in Q2 to offset rising operating costs (fuel/freight pressures in the tens of millions; no material Section 232 or memory cost impacts anticipated) and builds on strong Q1 results: total net revenue of over $1.9 billion (+8% YoY, ~2% FX benefit), adjusted EBITDA $215 million (+28% YoY), adjusted EPS $0.65 (+3% YoY) and Q1 gross margin 28.8% (down 10 bps).Resideo Technologies Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.61B | 7.47B | 6.76B | 6.24B | 6.37B | 5.85B |
| Gross Profit | 2.11B | 2.07B | 1.90B | 1.70B | 1.77B | 1.58B |
| EBITDA | -60.00M | -125.00M | 446.00M | 476.00M | 566.00M | 488.00M |
| Net Income | -495.00M | -527.00M | 116.00M | 210.00M | 283.00M | 242.00M |
Balance Sheet | ||||||
| Total Assets | 8.21B | 8.43B | 8.20B | 6.64B | 6.39B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 438.00M | 661.00M | 692.00M | 636.00M | 326.00M | 775.00M |
| Total Debt | 3.52B | 3.22B | 2.03B | 1.45B | 1.45B | 1.26B |
| Total Liabilities | 5.29B | 5.52B | 4.89B | 3.90B | 3.86B | 3.60B |
| Stockholders Equity | 2.92B | 2.92B | 3.31B | 2.75B | 2.53B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | -1.34B | -1.25B | 364.00M | 335.00M | 67.00M | 252.00M |
| Operating Cash Flow | -1.22B | -1.14B | 444.00M | 440.00M | 152.00M | 315.00M |
| Investing Cash Flow | -44.00M | -39.00M | -1.41B | -44.00M | -764.00M | -65.00M |
| Financing Cash Flow | 1.11B | 1.13B | 1.03B | -64.00M | 170.00M | 20.00M |
Resideo Technologies Technical Analysis
Negative
40.28
Price Trends
34.06
Negative
34.93
Negative
36.11
Negative
Market Momentum
-0.37
Negative
46.81
Neutral
53.27
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 40.28 is above the 20-day moving average (MA) of 31.05, above the 50-day MA of 34.06, and above the 200-day MA of 36.11, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 53.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REZI.
Resideo Technologies Risk Analysis
Resideo Technologies disclosed 30 risk factors in its most recent earnings report. Resideo Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resideo Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.25B | 20.47 | 16.46% | 1.23% | 11.11% | 8.52% | |
74 Outperform | $6.35B | 21.98 | 22.02% | 1.30% | 5.56% | 2.16% | |
71 Outperform | $1.36B | 43.48 | 22.92% | ― | 10.85% | ― | |
70 Outperform | $5.05B | 8.30 | 16.74% | 2.73% | 3.29% | 22.63% | |
68 Neutral | $1.33B | 36.20 | 20.86% | 1.29% | 8.83% | -16.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
47 Neutral | $4.69B | -8.65 | -17.64% | ― | 8.08% | -1039.66% |
* Industrials Sector Average
REZI
Resideo Technologies
30.96
8.90
40.34%
BRC
Brady
90.26
23.15
34.50%
MSA
MSA Safety
170.46
4.96
2.99%
NSSC
Napco Security Technologies
37.29
8.02
27.41%
ADT
Adt
6.39
-1.83
-22.26%
ARLO
Arlo Technologies
12.53
-4.43
-26.12%
Resideo Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Resideo Streamlines Financing Structure Through Merger and Guarantees
Positive
Jun 24, 2026
On June 24, 2026, Resideo Funding Inc. merged into Resideo Funding II LLC, with the latter surviving and assuming all obligations under Resideo’s outstanding 4.000% senior notes due 2029 and 6.500% senior notes due 2032, as well as borrower ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Resideo Shareholders Back Board, Governance at Annual Meeting
Positive
Jun 5, 2026
Resideo Technologies, Inc. held its Annual Meeting of Shareholders on June 3, 2026, where shareholders elected the full slate of nominated directors and approved, on an advisory basis, the company’s executive compensation program. Investors ...
Business Operations and StrategyPrivate Placements and Financing
Resideo Technologies Refinances Credit Facilities to Boost Flexibility
Positive
Jun 4, 2026
On June 4, 2026, Resideo Technologies, Inc. entered into a Second Amended and Restated Credit Agreement that refinanced its existing facilities and established up to about $2.827 billion in senior secured financing, including three existing term l...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
Resideo Advances ADI Spin-Off With Leadership Plans Filed
Positive
May 11, 2026
On May 6, 2026, Resideo announced a series of board and management changes tied to its planned separation of the ADI Global Distribution business, with directors Nathan Sleeper and Cynthia Hostetler set to resign from Resideo’s board and joi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.