Resideo Technologies (REZI) AI Stock Analysis

• Market Cap: $3.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 60.9
• Beta (1Y): 1.49
• Revenue Growth: 14.02%
• EPS Growth: -69.91%
• Country: US
• Employees: 14,600
• Sector: Industrials
• Sector Strength: 86
• Industry: Security & Protection Services
• EPS (TTM): 0.63
• Shares Outstanding: 148,503,540
• 10 Day Avg. Volume: 1,497,797
• 30 Day Avg. Volume: 1,024,988
• PEG Ratio: 0.55
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.85
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: $23.33
• Price Target Upside: -3.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $26.00 ▲(7.97%Upside)

Resideo Technologies has a strong overall score driven by its robust financial performance and positive technical indicators. The company's effective management of tariff impacts and revenue growth further support the score. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall outlook.

Positive Factors

Earnings

Revenue outperformed expectations, both businesses grew organically, and gross margins expanded more than expected.

Market Position

REZI is proving to be more insulated and resilient than most in the hardware sector despite tariff uncertainty and an uneven macro environment.

Product Development

REZI is gaining more content spend per household and is ahead with new product introductions.

Negative Factors

Tariff Impact

While this implies lower gross margins all else equal, ex-tariffs gross margins are expected to expand year over year in 2025 for both businesses.

Resideo Technologies Business Overview & Revenue Model

Company Description

Resideo Technologies, Inc. (REZI) is a leading global provider of home comfort and security solutions. The company specializes in products and services that enable smart home capabilities, including connected thermostats, security cameras, water leak detectors, and air quality monitors. Operating primarily in the residential sector, Resideo focuses on enhancing home environments through innovative technologies that improve comfort, security, and energy efficiency.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.04B	6.76B	6.24B	6.37B	5.85B	5.07B
Gross Profit	2.00B	1.90B	1.70B	1.77B	1.56B	1.31B
EBITDA	482.00M	445.00M	518.00M	779.00M	657.00M	251.00M
Net Income	79.00M	116.00M	210.00M	283.00M	242.00M	37.00M
Balance Sheet
Total Assets	8.07B	8.20B	6.64B	6.39B	5.85B	5.61B
Cash, Cash Equivalents and Short-Term Investments	577.00M	692.00M	636.00M	326.00M	779.00M	517.00M
Total Debt	2.03B	2.03B	1.61B	1.42B	1.23B	1.16B
Total Liabilities	4.73B	4.89B	3.90B	3.86B	3.60B	3.62B
Stockholders Equity	3.35B	3.31B	2.75B	2.53B	2.25B	1.99B
Cash Flow
Free Cash Flow	287.00M	364.00M	335.00M	67.00M	252.00M	174.00M
Operating Cash Flow	377.00M	444.00M	440.00M	152.00M	315.00M	244.00M
Investing Cash Flow	-1.42B	-1.41B	-44.00M	-764.00M	-65.00M	-103.00M
Financing Cash Flow	1.02B	1.03B	-64.00M	170.00M	20.00M	253.00M

Resideo Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 24.08 is above the 20-day moving average (MA) of 21.78, above the 50-day MA of 20.30, and above the 200-day MA of 21.01, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 74.21 is Negative, neither overbought nor oversold. The STOCH value of 98.51 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	$1.07B	24.54	27.48%	1.86%	-1.05%	-2.78%
REZI	77 Outperform	$3.58B	60.92	2.58%	―	14.02%	-69.91%
ARLO	73 Outperform	$1.82B	―	-21.34%	―	0.27%	-18.75%
ADT	72 Outperform	$7.09B	14.49	16.26%	2.60%	-5.44%	-16.05%
BRC	71 Outperform	$3.30B	17.23	17.80%	1.38%	8.62%	3.59%
BRC	71 Outperform	$3.30B	17.23	17.80%	1.38%	8.62%	3.59%
Sector *	67 Neutral	CHF6.90B	25.33	16.28%	2.88%	-2.63%	-20.30%
BCO	57 Neutral	$3.97B	25.34	54.50%	1.08%	1.97%	41.88%
BCO	57 Neutral	$3.97B	25.34	54.50%	1.08%	1.97%	41.88%

Resideo Technologies Corporate Events

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.