Resideo Technologies, Inc. (REZI) stock analysis
Close on Nov 12, 2026Market cap $3.26BP/E 13.3Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Mixed10 of 30 checks passed
Resideo Technologies passes 10 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 27.6% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $21.46 is below our fair value estimate of $29.65.
Low bankruptcy risk
The Altman Z-score is 3.13; above 3 is the safe zone and below 1.8 the distress zone.
P/E below its 5-year median
Resideo Technologies's P/E of 13.3 is below its own 5-year median of 14.6.
What to watch
Return on equity under 15%
Return on equity was 15.8% over the last twelve months and averaged 3.6% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.
High debt
Debt is 220% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 5.5% a year over the last three fiscal years, short of the 10% we look for.
Valuation4/6
P/E below its 5-year median
Resideo Technologies's P/E of 13.3 is below its own 5-year median of 14.6.
P/E below the industry
Resideo Technologies's P/E of 13.3 is below the Wholesale Trade-durable Goods median of 19.9.
EV/EBITDA above its 5-year median
Resideo Technologies's EV/EBITDA of 6.5 is above its 5-year median of 6.3.
P/B above the industry
Resideo Technologies's price-to-book of 3.44 is above the Wholesale Trade-durable Goods median of 2.13.
Trading below fair value
The share price of $21.46 is below our fair value estimate of $29.65.
Margin of safety over 20%
The price is 27.6% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 5.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 59.1% over the last twelve months; the Wholesale Trade-durable Goods median is 8.4%.
Guidance lowered
Resideo Technologies lowered its 2026 Revenue outlook on Aug 12, 2026.
Gross margin slipping
Gross margin was 28.0% over the last twelve months, against 30.2% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 15.8% over the last twelve months and averaged 3.6% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Resideo Technologies's return on equity of 15.8% is above the Wholesale Trade-durable Goods median of 7.6%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 2.9% over the last twelve months, against a 5-year average of 1.3%.
Net margin above the industry
Resideo Technologies's net margin of 2.9% is above the Wholesale Trade-durable Goods median of 1.9%.
Financial health2/6
High debt
Debt is 220% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 58.3% five years ago to 220%.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 14.5% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense 3.3 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.42 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.13; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Resideo Technologies has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$29.65
The share price is 28% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 17.2× | 14.6× | 19.9× | $27.76 | 47% |
| EV/EBITDA | 9.5× | 6.3× | 12.8× | $37.42 | 41% |
| P/B | 1.6× | 1.1× | 2.1× | $10.02 | 12% |
| Fair value | $29.65 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 14.6
- Wholesale Trade-durable Goods median 19.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $36.74M
- Value traded per 1% price move
- $19.54M
Downside
High risk
- Typical loss in a bad month
- 43.5%
- Volatility (annualized)
- 64%
- Sharpe ratio, 1 year
- -0.53
- Beta to the S&P 500 (5Y)
- 1.34
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2015 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +10.5% | +5.5% | +8.1% | – | |
| Gross profit | +15.5% | +7.5% | +10.3% | – | |
| Operating income | +16.7% | -0.2% | +14.3% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 6.3% | 2.1% | -16.9% | |
| Return on assets | – | 0.7% | -6.3% | |
| Current ratio | – | 1.45 | 1.91 | |
| Debt to equity | – | 0.58 | 1.09 | |
| Net debt to EBITDA | – | 1.62× | 3.30× | |
| Interest coverage | – | 4.9× | 4.5× | |
| Inventory turnover | – | 5.6× | 6.8× | |
| Capex to revenue | 1.3% | 1.4% | 1.6% | |
| Diluted shares | 122M | 126M | 149M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Resideo Technologies generated $2.49B from operations and spent $491.00M on capital expenditure, dividends and share buybacks. 91% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -7.1% | 0.90× | 2.67× | -16.9% |
| FY2024 | 1.7% | 0.91× | 2.45× | 3.8% |
| FY2023 | 3.4% | 0.96× | 2.47× | 8.0% |
| FY2022 | 4.4% | 1.04× | 2.56× | 11.8% |
| FY2021 | 4.1% | 1.02× | 2.70× | 11.4% |
| FY2020 | 0.7% | 0.94× | 2.99× | 2.1% |
| FY2019 | 0.7% | 0.99× | 3.22× | 2.3% |
| FY2018 | 8.4% | 1.02× | 2.28× | 19.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$527.00M
- Cash generatingOperating cash flow above zero-$1.14B
- Return on assets improvedROA up on the prior year1.7% → -6.4%
- Earnings backed by cashOperating cash flow above net income-$1.14B vs -$527.00M
- Less leverageLong-term debt to assets fell24.2% → 37.6%
- Better liquidityCurrent ratio rose1.77 → 1.91
- No dilutionShare count did not rise149M → 149M
- Gross margin improvedGross margin up on the prior year28.12% → 29.39%
- More efficientAsset turnover rose1.02 → 0.91
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