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Resideo Technologies, Inc. (REZI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Resideo Technologies, Inc.

REZIMarket cap $2.87BPrice $18.9

Country🇺🇸United States

SectorIndustrials

IndustryBuilding Products

Makes and distributes home comfort and security products, from thermostats to security panels, spun off from Honeywell in 2018. Its ADI global distribution arm sells millions of security products to professionals, quietly powering homes you'd never guess.

In Bastion Portfolios?

52W Return-53%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+5%5

Revenue Forecast

Rev CAGR (1y)-45%1

Rev CAGR (3y)-26%1

Rev CAGR (5y)-16%1

Earnings Forecast

EPS Growth Y+10%5

EPS Growth Y+2-10%3

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin8%4

Net Income Margin6%4

Free Cash Flow Margin-18%2

Debt

Net Debt/EBITDA3.52

Efficiency

ROE16%7

ROA5%6

Earnings Stability55

GEAR+VERY WEAK6

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)108

P/E Ratio (Forward 3y)89

P/BV1.19

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd127

Yield

Free Cash Flow Yield-48.7%1

Dividend Yieldna–

Momentum

Short term

1 month return-5%5

3 month return-16%2

YTD return-23%2

Mid term

Price vs 52wHigh60%2

1 year return-35%1

Long term

3 year return+73%7

5 year return+12%4

Risk Shield

Price Risk

Beta1.52

Volatility61%2

Free Cash Flow

Free Cash Flow Margin-18%2

Free Cash Flow Yield-48.7%1

Quality

ROCE10%6

Earnings Stability55

Net Debt/EBITDA3.52

02Growth

Is it actually growing, and how fast?

REZIResideo Technologies

Revenue FY25$7.5B

GROWTH RATING↗

VERY WEAK4 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y-45%1

Revenue, next 3Y, CAGR-26%1

Revenue, next 5Y, CAGR-16%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E-10%3

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Growth is the weak spot here, trailing 96% of companies worldwide.

Revenue is set to shrink 26%/yr over the next 3 years, behind most of the market.1/10

Revenue grew 5%/yr over the last 3 years, but it is set to shrink 26%/yr from here.

Over five years revenue is set to shrink 16%/yr, behind 90% of companies worldwide.1/10

Earnings are set to fall along with revenue (EPS about 0%/yr vs revenue -26%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK17 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-16%2

YTD return-23%2

MID & LONG-TERM▾SCORE

% of 52-week high60%2

1-year return-35%1

3-year return+73%7

5-year return+12%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+73% over three years and +12% over five), roughly average for the market.

Returns sit at the market level over the past month (-5%).

WEAKNESSES

It's down 35% over the past year, now 40% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-16%) and so far this year (-23%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Resideo Technologies, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

REZIResideo Technologies

Revenue FY25$7.5B

GROWTH RATING↗

VERY WEAK4 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y-45%1

Revenue, next 3Y, CAGR-26%1

Revenue, next 5Y, CAGR-16%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E-10%3

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Growth is the weak spot here, trailing 96% of companies worldwide.

Revenue is set to shrink 26%/yr over the next 3 years, behind most of the market.1/10

Revenue grew 5%/yr over the last 3 years, but it is set to shrink 26%/yr from here.

Over five years revenue is set to shrink 16%/yr, behind 90% of companies worldwide.1/10

Earnings are set to fall along with revenue (EPS about 0%/yr vs revenue -26%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business heading into decline. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK17 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-16%2

YTD return-23%2

MID & LONG-TERM▾SCORE

% of 52-week high60%2

1-year return-35%1

3-year return+73%7

5-year return+12%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+73% over three years and +12% over five), roughly average for the market.

Returns sit at the market level over the past month (-5%).

WEAKNESSES

It's down 35% over the past year, now 40% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-16%) and so far this year (-23%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Resideo Technologies, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community