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Resideo Technologies Inc (REZI)
NYSE:REZI
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Resideo Technologies
(NYSE:REZI)66Neutral
Resideo Technologies (REZI) vs. S&P 500 (SPY)
Market Cap
$2.84B
Dividend YieldN/A
Average Volume (3M)898.28K
Price to Earnings (P/E)26.3
Beta (1Y)1.76
Revenue Growth8.31%
EPS Growth-49.90%
CountryUS
Employees14,000
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding147,878,140
10 Day Avg. Volume1,396,314
30 Day Avg. Volume898,277
Financial Highlights & Ratios
PEG Ratio3.44
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)3.50
P/FCF Ratio3.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside53.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Resideo Technologies Business Overview & Revenue Model
Company DescriptionResideo Technologies, Inc. engages in the provision of critical comfort, residential thermal solutions and security solutions primarily in residential environments. It operates through the following segments: Products & Solutions and ADI Global Distribution. The Products & Solutions Segment offers solutions in Comfort, Residential Thermal Solutions, and Security categories and include temperature and humidity control, thermal, water, and air solutions as well as security panels, sensors, peripherals, wire and cable, communications devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software. The ADI Global Distribution segment distributes low-voltage electronic and security products such as intrusion and smart home, fire, video surveillance, access control, power, audio and video, networking, communications, wire and cable, enterprise connectivity, and structured wiring. The company was founded on April 24, 2018 and is headquartered in Austin, TX.
How the Company Makes MoneyResideo Technologies generates revenue primarily through the sale of its smart home products and solutions. The company's key revenue streams include its portfolio of home comfort and security products such as thermostats, security cameras, sensors, and water leak detectors. Additionally, Resideo offers professional installation services and ongoing support, which contribute to its revenue. The company benefits from partnerships with major retailers and professional contractors, as well as its established distribution network, which helps to drive sales in both the consumer and professional markets. Resideo also pursues strategic acquisitions to expand its product offerings and enhance its market position, further supporting its revenue growth.
Resideo Technologies Financial Statement Overview
Summary
Resideo Technologies shows strong financial health with robust revenue growth and efficient cash flow management. However, the decline in net income and return on equity highlights areas for improvement. Maintaining operational efficiencies and managing leverage effectively will be key to future financial stability and growth.Income Statement
The company demonstrated solid revenue growth of 8.3% in 2024, continuing a positive trend from previous years. However, net income decreased significantly from 2023 to 2024, leading to a reduced net profit margin of 1.7%. The gross profit margin remained stable at 28.1%. EBIT and EBITDA margins are strong at 7.7% and 7.7% respectively, indicating operational efficiency despite the decline in net income.75
Positive
Balance Sheet
Resideo Technologies maintains a manageable debt-to-equity ratio of 0.60, slightly up from the previous year, indicating a responsible leverage level. The equity ratio improved to 40.3%, showing a strong equity base. However, the return on equity decreased to 3.5%, reflecting a decline in profitability relative to shareholders' equity.68
Positive
Cash Flow
The company achieved a 8.7% growth in free cash flow in 2024, showcasing effective cash management. The operating cash flow to net income ratio is high at 3.83, indicating strong cash generation relative to net income. Free cash flow to net income ratio also improved, demonstrating solid cash flow performance despite reduced net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.76B | 6.24B | 6.37B | 5.85B | 5.07B | Gross Profit |
| 1.90B | 1.70B | 1.77B | 1.56B | 1.31B | EBIT |
| 520.00M | 547.00M | 611.00M | 401.00M | 164.00M | EBITDA |
| 446.00M | 518.00M | 779.00M | 657.00M | 251.00M | Net Income Common Stockholders |
| 116.00M | 210.00M | 283.00M | 242.00M | 37.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 692.00M | 636.00M | 326.00M | 779.00M | 517.00M | Total Assets |
| 8.20B | 6.64B | 6.39B | 5.85B | 5.61B | Total Debt |
| 1.98B | 1.61B | 1.42B | 1.23B | 1.16B | Net Debt |
| 1.29B | 977.00M | 1.09B | 451.00M | 645.00M | Total Liabilities |
| 4.89B | 3.90B | 3.86B | 3.60B | 3.62B | Stockholders Equity |
| 3.31B | 2.75B | 2.53B | 2.25B | 1.99B |
| Cash Flow | Free Cash Flow | |||
| 364.00M | 335.00M | 67.00M | 252.00M | 174.00M | Operating Cash Flow |
| 444.00M | 440.00M | 152.00M | 315.00M | 244.00M | Investing Cash Flow |
| -1.41B | -44.00M | -764.00M | -65.00M | -103.00M | Financing Cash Flow |
| 1.03B | -64.00M | 170.00M | 20.00M | 253.00M |
Resideo Technologies Technical Analysis
Negative
17.60
Price Trends
22.14
Negative
22.94
Negative
21.51
Negative
Market Momentum
-1.17
Positive
21.69
Positive
6.39
Positive
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 17.6 is below the 20-day moving average (MA) of 20.63, below the 50-day MA of 22.14, and below the 200-day MA of 21.51, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 21.69 is Positive, neither overbought nor oversold. The STOCH value of 6.39 is Positive, 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 28 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $53.41B | 30.89 | 11.01% | 1.79% | -4.53% | -14.72% | |
74 Outperform | $64.30B | 27.12 | 9.14% | 1.80% | 10.29% | 22.72% | |
68 Neutral | $135.18B | 23.89 | 596.13% | 2.08% | 5.05% | 2.73% | |
66 Neutral | $2.84B | 26.33 | 3.51% | ― | 8.31% | -49.90% | |
63 Neutral | $9.54B | 18.32 | 28.33% | 1.99% | -0.90% | -1.69% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $15.94B | 20.03 | -118.61% | 1.57% | -1.74% | -6.91% |
* Industrials Sector Average
Performance Comparison
REZI
Resideo Technologies
17.60
-4.74
-21.22%
EMR
Emerson Electric Company
114.03
6.18
5.73%
HON
Honeywell International
208.00
11.66
5.94%
JCI
Johnson Controls
80.90
21.63
36.49%
MAS
Masco
72.50
-2.73
-3.63%
AOS
A. O. Smith Corporation
65.61
-17.45
-21.01%
Resideo Technologies Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -17.87% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Resideo concluded 2024 with strong financial performance, including significant revenue and EBITDA growth, record free cash flow, and successful product launches. The integration of Snap One and the expansion of e-commerce channels contributed positively. However, challenges in the security channel and competitive pricing pressures presented areas of concern. Despite uncertainties in the tariff environment, comprehensive planning is in place to mitigate potential impacts.Highlights
Strong Revenue and EBITDA Growth
Resideo reported total net revenue of approximately $6.8 billion, growing 8% year-over-year. Total adjusted EBITDA grew 17% year-over-year to $700 million, exceeding the high end of the outlook range.
Record Free Cash Flow
Resideo generated $444 million in cash from operations, setting a new record and surpassing the outlook of at least $375 million.
Successful Product Launches
The introduction of the Focus Pro thermostat and VISTA security products was met with positive customer reception, contributing to growth in the Products & Solutions segment.
ADI Segment Growth
ADI reported 39% year-over-year growth in net revenue in Q4, driven by the Snap One acquisition and broad-based organic growth across product categories.
Snap One Integration Success
The integration of Snap One is progressing well, achieving approximately $17 million of run rate synergies in 2024, 40% higher than expected.
E-commerce Expansion
ADI's e-commerce net revenue grew 22% year-over-year, achieving a new record high in daily sales average and contributing positively to gross margin.
Lowlights
Security Channel Softness
The Products & Solutions segment experienced a 1% year-over-year decline in organic net revenue in Q4, largely due to softness in the security channel.
Competitive Pricing Pressure
Competitive pricing, especially in the ADI segment, offset some of the gains from operational efficiencies and posed a headwind in Q4.
Tariff Environment Uncertainty
Potential changes in the tariff environment add uncertainty to 2025, although the company has prepared comprehensive planning to address potential impacts.
Company Guidance
In the Resideo 2024 Fourth Quarter and Full Year Earnings Call, CEO Jay Geldmacher highlighted several key metrics that underscored the company's strong performance. Resideo reported total net revenue of approximately $6.8 billion, reflecting an 8% year-over-year growth. Total adjusted EBITDA increased by 17% to around $700 million. The company also achieved record cash generation from operations, reaching $444 million, significantly surpassing its outlook of at least $375 million. The Products & Solutions segment improved its fundamentals with gross margins expanding by 240 basis points. Meanwhile, the ADI business achieved 2% organic net revenue growth, excluding currency impacts and acquisitions, and realized run-rate synergies of $17 million from the Snap One acquisition, which was about 40% higher than expected. Looking ahead to 2025, Resideo anticipates total company net revenue to range between $7.285 billion and $7.485 billion, with adjusted EBITDA expected to be between $725 million and $805 million. The company also forecasts cash provided by operations to be between $345 million and $405 million, while planning for continued revenue growth, gross margin expansion, and robust free cash flow generation.Resideo Technologies Corporate Events
Executive/Board Changes
Resideo Technologies Announces Departure of Key Executive
Neutral
Jan 17, 2025
On January 15, 2025, Resideo Technologies, Inc. announced that Tina Beskid, the Senior Vice President and Chief Accounting Officer, will have her employment terminated effective March 14, 2025. This decision entitles Ms. Beskid to severance under the company’s Severance Plan for Designated Officers.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.