Resideo Technologies, Inc.
$29.75
-0.23%Resideo Technologies, Inc. develops, manufactures, and sells comfort, residential thermal, and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products & Solutions, and ADI Global Distribution. It offers temperature and humidity control, thermal water, and air solutions; and security panels, sensors, peripherals, wires and cables, communication devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand. In addition, the company distributes security products comprising video, intrusion, and access control products; and smart home, fire, power, audio, ProAV, networking, communication, wire and cable, enterprise connectivity, and structured wiring products to contractors that service non-residential and residential end-users. It sells its products through a network of distributors, original equipment manufacturers, and service providers, as well as retail and online channels. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -7.9).
Valuation inputs: P/E -7.9, earnings yield N/A, momentum -0.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -18.1%, ROIC +9.1%).
Profitability stack: net margin -7.0%, ROE -18.1%, ROIC +9.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +65.4%, momentum -0.2%, net margin -7.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Resideo Technologies, Inc. Market vs Earnings Trajectory
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Resideo Technologies, Inc. Fair Value Envelope
Resideo Technologies, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
Resideo Technologies, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Resideo Technologies, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Resideo Technologies, Inc. Street Expectations Map
Wall Street analysts project that REZI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 40.00, with estimates ranging from a low of 32.00 to a high of 48.00.
The consensus 1-year price target stands at 40.00, with estimates ranging from a low of 32.00 to a high of 48.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Resideo Technologies, Inc. Insider Positioning
During the last 12 months, insiders have purchased $229.70M and sold $4.17M worth of REZI shares, resulting in $225.52M of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
1.4M
43.99M
0
0.00
+44.0M
+$43.99M
9-12 Months
7.3M
185.70M
138.8K
4.17M
+181.5M
+$181.53M
Top Buyers
Cd&R Channel Holdings Ii, L.P.
10 Percent Owner
$228.44M
Teich Andrew C
Director
$1.25M
Top Sellers
Geldmacher Jay L
Director, Officer: President And Ceo
$1.49M
Aarnes Robert B
Officer: President, Adi
$1.32M
Lane Jeannine J
Officer: Evp, Gc And Corp Sec
$1.11M
Richardson Nina
Director
$264K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $225.52M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
4 insider sellers vs. 2 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
rezi Dividend History
Learning Layer
Related Guides
Build conviction on REZI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.