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Resideo Technologies
(NYSE:REZI)
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Rating:54Neutral
Price Target:
$18.00
▼(-9.91% 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
P&S Margin Expansion
Sustained gross-margin expansion across 13 consecutive quarters indicates improving economics in the Products & Solutions business rather than a single-period benefit. Higher-value products, operational efficiency, and continued research investment can support durable profitability and strengthen Resideo’s competitive position.
Negative Factors
Severe Cash Burn
Deeply negative operating and free cash flow is a durable concern because reported earnings are not currently translating into internally generated funding. Continued cash consumption can increase reliance on financing, constrain investment capacity, and make the business more vulnerable if operating conditions weaken or separation costs persist.
Read all positive and negative factors
Positive Factors
Negative Factors
P&S Margin Expansion
Sustained gross-margin expansion across 13 consecutive quarters indicates improving economics in the Products & Solutions business rather than a single-period benefit. Higher-value products, operational efficiency, and continued research investment can support durable profitability and strengthen Resideo’s competitive position.
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
$2.71B
Dividend YieldN/A
Average Volume (3M)2.01M
Price to Earnings (P/E)7.4
Beta (1Y)1.69
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. Volume1,524,686
30 Day Avg. Volume2,010,866
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 Cap3.01
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit3.76
Enterprise Value/Ebitda9.41
Forecast
1Y Price Target
$26.75Price Target Upside33.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.75
Revenue Forecast (FY)$3.90B
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 primarily makes money through product and solution sales across two main avenues: (1) Products and Solutions: Resideo sells branded and private-label residential and light-commercial products such as thermostats and HVAC controls, indoor a...
Resideo Technologies Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 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
Neutral
19.98
Price Trends
18.66
Negative
20.91
Negative
22.90
Negative
Market Momentum
-0.47
Negative
50.19
Neutral
97.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REZI, the sentiment is Neutral. The current price of 19.98 is above the 20-day moving average (MA) of 17.48, above the 50-day MA of 18.66, and below the 200-day MA of 22.90, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 97.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $63.58B | 34.40 | 48.70% | 0.70% | 7.80% | -0.65% | |
76 Outperform | $11.64B | 28.58 | 22.17% | 0.63% | 8.84% | 8.10% | |
71 Outperform | $13.45B | 27.89 | 16.76% | 3.99% | -2.98% | -12.07% | |
67 Neutral | $15.50B | 21.71 | 14.06% | 0.61% | 12.51% | 13.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $43.89B | 21.67 | 34.00% | 1.57% | 8.17% | 37.33% | |
54 Neutral | $2.71B | 7.38 | 14.70% | ― | 3.42% | ― |
* Industrials Sector Average
REZI
Resideo Technologies
17.86
-12.74
-41.63%
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317.00
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1,349.90
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WSO
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322.98
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-8.15%
WCC
Wesco International
318.02
96.49
43.56%
FERG
Ferguson Enterprises
226.86
-20.34
-8.23%
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...
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.