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Resideo Technologies
(NYSE:REZI)
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Rating:54Neutral
Price Target:
$21.00
▼(-39.20% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by very weak cash flow and increased leverage despite improved earnings. Technical signals are also unfavorable with the stock trading below all key moving averages and negative momentum. Partially offsetting these risks are a low P/E valuation and a generally constructive earnings-call outlook supported by operational execution and stated debt paydown plans.
Positive Factors
Product innovation and margin expansion
Sustained margin expansion and adoption of higher-value thermostats, detectors, surveillance and water products indicate product differentiation. Continued R&D investment and a new-product pipeline can support pricing power, mix improvement and durable earnings growth.
Negative Factors
Severe negative cash generation
Cash generation has diverged sharply from reported earnings after positive cash flow in 2023–2024. Persistent operating and free-cash-flow deficits can increase funding needs, restrict investment capacity and weaken resilience during the post-spin transition.
Read all positive and negative factors
Positive Factors
Negative Factors
Product innovation and margin expansion
Sustained margin expansion and adoption of higher-value thermostats, detectors, surveillance and water products indicate product differentiation. Continued R&D investment and a new-product pipeline can support pricing power, mix improvement and durable earnings growth.
Read all positive factors
Resideo Technologies Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profit made after deducting the cost of goods sold for each business segment. This highlights the profitability of different parts of the company and can indicate where the company is most competitive.
Shows the profit made after deducting the cost of goods sold for each business segment. This highlights the profitability of different parts of the company and can indicate where the company is most competitive.
Data provided by:
The Fly
The FlyResideo Technologies (REZI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.03B
Dividend YieldN/A
Average Volume (3M)1.62M
Price to Earnings (P/E)8.2
Beta (1Y)1.73
Revenue Growth3.42%
EPS GrowthN/A
CountryUS
Employees14,800
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)2.42
Shares Outstanding151,847,380
10 Day Avg. Volume1,982,015
30 Day Avg. Volume1,615,390
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.25
Price to Sales (P/S)0.49
P/FCF Ratio-2.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.67Price Target Upside6.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.88
Revenue Forecast (FY)$4.54B
Resideo Technologies Business Overview & Revenue Model
Company Description
Resideo Technologies, Inc. develops, manufactures, sells, and distributes comfort, energy management, and safety and security solutions in the United States, Europe, and internationally. The company operates through Products and Solutions and ADI ...
How the Company Makes Money
Resideo makes money primarily by (1) selling products it designs and manufactures and (2) earning distribution revenue through its ADI Global Distribution business.
1) Products and Solutions revenue (product sales + select software/services)
- Ha...
Resideo Technologies Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial performance with record quarterly revenue, strong adjusted EBITDA and EPS growth, continued P&S margin expansion and successful product adoption. Management also took strategic balance-sheet actions (ADI spin-off, $900M debt paydown) and reiterated a constructive product pipeline and stand-alone outlook for 2026. Offsetting risks include a meaningful near-term cash flow decline driven by separation and settlement costs, elevated input-cost inflation with expected H2 margin pressure (particularly Q3), the loss of volume from a large OEM security customer (estimated $40M–$50M revenue impact in H2), and the absence of further material tariff refunds. On balance, the positive results, clear execution on product launches and deleveraging actions outweigh the manageable near-term headwinds, supporting a favorable long-term view.Positive Updates
Record Quarterly Revenue
Total consolidated revenue increased 2% year-over-year to just under $2.0 billion in Q2 2026, marking a new quarterly record.
Negative Updates
Quarterly Operating Cash Decline
Reported cash provided by operating activities was $148 million in Q2 versus $200 million in the prior-year period, a decline of approximately 26%, driven primarily by ~$45 million of nonrecurring business separation payments and settlements and ~$20 million of higher cash interest paid.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total consolidated revenue increased 2% year-over-year to just under $2.0 billion in Q2 2026, marking a new quarterly record.
Read all positive updates
Company Guidance
Resideo provided stand‑alone 2026 guidance of revenue $2.90–$2.95 billion and adjusted EBITDA $605–$625 million, and a Q3 2026 outlook of revenue $705–$730 million and adjusted EBITDA $145–$155 million; the outlook assumes ~ $175 million of full‑year sales to ADI and ~ $80 million of full‑year corporate costs allocated, with adjusted EPS and cash‑from‑operations guidance deferred pending the post‑closing cash adjustment and ADI to be presented as discontinued operations starting in Q3. For context, Resideo beat Q2 with consolidated revenue up 2% y/y to just under $2.0 billion, total adjusted EBITDA up 19% y/y to $249 million (which included ~$27 million of tariff refunds) and adjusted EPS up 26% y/y to $0.83; Products & Solutions revenue grew 4% y/y, gross margin was 43.6% (up 70 bps y/y and 100 bps sequentially), P&S adjusted EBITDA rose 6% y/y, and R&D remains ~5% of segmented revenue. Management expects H2 headwinds from input‑cost inflation and a $40–$50 million reduction in second‑half revenue from a large OEM security customer, does not expect material tariff refunds for the rest of 2026, and noted Q2 operating cash of $148 million (vs. $200 million prior year) driven by ~$45 million of separation payments and ~$20 million higher cash interest; Resideo also repaid $900 million of Term Loan B principal on August 3 and anticipates an additional ~$200 million repayment in Q3.Resideo Technologies Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
55
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.65B | 7.47B | 6.76B | 6.24B | 6.37B | 5.85B |
| Gross Profit | 2.17B | 2.07B | 1.90B | 1.70B | 1.77B | 1.58B |
| EBITDA | 867.00M | -125.00M | 446.00M | 476.00M | 566.00M | 488.00M |
| Net Income | 427.00M | -527.00M | 116.00M | 210.00M | 283.00M | 242.00M |
Balance Sheet | ||||||
| Total Assets | 8.78B | 8.43B | 8.20B | 6.64B | 6.39B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 549.00M | 661.00M | 692.00M | 636.00M | 326.00M | 775.00M |
| Total Debt | 3.83B | 3.22B | 2.03B | 1.45B | 1.45B | 1.26B |
| Total Liabilities | 5.78B | 5.52B | 4.89B | 3.90B | 3.86B | 3.60B |
| Stockholders Equity | 3.01B | 2.92B | 3.31B | 2.75B | 2.53B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | -1.40B | -1.25B | 364.00M | 335.00M | 67.00M | 252.00M |
| Operating Cash Flow | -1.27B | -1.14B | 444.00M | 440.00M | 152.00M | 315.00M |
| Investing Cash Flow | -43.00M | -39.00M | -1.41B | -44.00M | -764.00M | -65.00M |
| Financing Cash Flow | 1.50B | 1.13B | 1.03B | -64.00M | 170.00M | 20.00M |
Resideo Technologies Technical Analysis
Negative
34.54
Price Trends
22.97
Negative
23.67
Negative
23.95
Negative
Market Momentum
-1.14
Positive
37.95
Neutral
18.53
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 34.54 is above the 20-day moving average (MA) of 22.77, above the 50-day MA of 22.97, and above the 200-day MA of 23.95, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 18.53 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 32 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.41B | 21.34 | 16.46% | 1.04% | 11.11% | 8.52% | |
78 Outperform | $1.43B | 45.32 | 21.25% | ― | 15.65% | ― | |
76 Outperform | $1.30B | 29.53 | 23.59% | 1.62% | 11.39% | 0.75% | |
72 Outperform | $7.24B | 23.64 | 23.15% | 1.22% | 6.48% | 14.55% | |
72 Outperform | $5.43B | 9.66 | 16.83% | 3.13% | 2.10% | 6.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $3.03B | 8.21 | 14.70% | ― | 3.42% | ― |
* Industrials Sector Average
REZI
Resideo Technologies
19.87
-3.97
-16.64%
BRC
Brady
94.09
17.43
22.74%
MSA
MSA Safety
190.52
19.68
11.52%
NSSC
Napco Security Technologies
35.73
-2.06
-5.44%
ADT
Adt
7.44
-0.98
-11.68%
ARLO
Arlo Technologies
13.06
-4.79
-26.83%
Resideo Technologies Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Resideo Technologies Finalizes ADI Spin-Off, Updates Incentive Plans
Positive
Aug 7, 2026
On August 3, 2026, Resideo Technologies completed the tax-free spin-off of its former wholesale distribution unit, ADI Global Distribution, into an independent public company, distributing one ADI share for every two Resideo shares held as of July...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
Resideo Spins Off ADI and Deleverages Balance Sheet
Positive
Aug 4, 2026
On August 3, 2026, Resideo Technologies completed the separation and distribution of ADI Global Distribution, turning ADI into an independent public company trading on the New York Stock Exchange under the symbol ADIG. The spin-off was executed vi...
Business Operations and StrategyDelistings and Listing ChangesFinancial Disclosures
Resideo Outlines Post-Spin Strategy at Investor Day
Positive
Jul 13, 2026
On July 13, 2026, Resideo Technologies hosted its Investor Day at the New York Stock Exchange, outlining its strategy and financial framework as it prepares to become a pure-play building technologies company following the planned separation of AD...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Resideo Approves Tax-Free Spin-Off of ADI Distribution
Positive
Jul 1, 2026
On July 1, 2026, Resideo’s board formally approved the spin-off of its ADI Global Distribution business into a standalone, publicly traded company, with a July 20 record date and an August 3 distribution date under which Resideo shareholders...
Business Operations and StrategyPrivate Placements and Financing
Resideo Streamlines Financing Structure Through Merger and Guarantees
Positive
Jun 24, 2026
On June 24, 2026, Resideo Funding Inc. merged into Resideo Funding II LLC, with the latter surviving and assuming all obligations under Resideo’s outstanding 4.000% senior notes due 2029 and 6.500% senior notes due 2032, as well as borrower ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Resideo Shareholders Back Board, Governance at Annual Meeting
Positive
Jun 5, 2026
Resideo Technologies, Inc. held its Annual Meeting of Shareholders on June 3, 2026, where shareholders elected the full slate of nominated directors and approved, on an advisory basis, the company’s executive compensation program. Investors ...
Business Operations and StrategyPrivate Placements and Financing
Resideo Technologies Refinances Credit Facilities to Boost Flexibility
Positive
Jun 4, 2026
On June 4, 2026, Resideo Technologies, Inc. entered into a Second Amended and Restated Credit Agreement that refinanced its existing facilities and established up to about $2.827 billion in senior secured financing, including three existing term l...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.