📊 REZI Key Takeaways
Is REZI a Good Investment? Thesis Analysis
Resideo demonstrates severe financial distress characterized by a -$527M net loss, negative operating cash flow of -$1.1B despite positive operating income, and unsustainable free cash flow burn of -$1.3B. The disconnect between positive operating income and deeply negative cash flows, combined with high leverage (debt exceeding equity), indicates serious underlying operational or working capital issues that pose existential risk.
Why Buy REZI? Key Strengths
- Revenue growth of 10.5% YoY shows top-line expansion
- Gross margin of 29.4% indicates reasonable product economics
- Interest coverage ratio of 15.2x shows ability to service debt obligations currently
- Current ratio of 1.91x provides near-term liquidity cushion
REZI Investment Risks to Consider
- Operating cash flow of -$1.1B is severely negative despite positive operating income, indicating major quality-of-earnings concerns and working capital deterioration
- Free cash flow burn of -$1.3B is unsustainable and will rapidly deplete $661M cash reserves, creating solvency risk
- Debt of $3.2B exceeds stockholders' equity of $2.9B, leaving limited financial flexibility for distressed company
- Net income of -$527M with net margin of -7.1% and negative ROE/ROA of -18.1%/-6.2% demonstrate structural unprofitability
- Significant disconnect between operating income and operating cash flow suggests potential accounting manipulation or severe operational dysfunction
Key Metrics to Watch
- Operating cash flow trend - critical to identify if negative cash flow is temporary or structural
- Cash balance and cash burn rate - runway until liquidity crisis
- Working capital changes and days sales outstanding - to diagnose why cash flow diverges from profits
- Debt covenant compliance and refinancing needs - leverage sustainability risk
- Operating income sustainability - whether positive operating results can be maintained
REZI Financial Metrics
💡 AI Analyst Insight
RESIDEO TECHNOLOGIES, INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
REZI Profitability Ratios
REZI vs Default Sector
How RESIDEO TECHNOLOGIES, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is REZI Overvalued or Undervalued?
Based on fundamental analysis, RESIDEO TECHNOLOGIES, INC. shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
REZI Balance Sheet & Liquidity
REZI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: RESIDEO TECHNOLOGIES, INC.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
REZI Growth Metrics (YoY)
REZI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.8B | $20.0M | $0.07 |
| Q2 2025 | $1.6B | $30.0M | $0.19 |
| Q1 2025 | $1.5B | $6.0M | $-0.02 |
| Q3 2024 | $1.6B | $20.0M | $0.07 |
| Q2 2024 | $1.6B | $30.0M | $0.19 |
| Q1 2024 | $1.5B | $43.0M | $0.29 |
| Q3 2023 | $1.6B | $21.0M | $0.14 |
| Q2 2023 | $1.6B | $50.0M | $0.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
REZI Capital Allocation
REZI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for RESIDEO TECHNOLOGIES, INC. (CIK: 0001740332)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REZI
What is the AI rating for REZI?
RESIDEO TECHNOLOGIES, INC. (REZI) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are REZI's key strengths?
Claude: Revenue growth of 10.5% YoY shows top-line expansion. Gross margin of 29.4% indicates reasonable product economics.
What are the risks of investing in REZI?
Claude: Operating cash flow of -$1.1B is severely negative despite positive operating income, indicating major quality-of-earnings concerns and working capital deterioration. Free cash flow burn of -$1.3B is unsustainable and will rapidly deplete $661M cash reserves, creating solvency risk.
What is REZI's revenue and growth?
RESIDEO TECHNOLOGIES, INC. reported revenue of $7.5B.
Does REZI pay dividends?
RESIDEO TECHNOLOGIES, INC. does not currently pay dividends.
Where can I find REZI SEC filings?
Official SEC filings for RESIDEO TECHNOLOGIES, INC. (CIK: 0001740332) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REZI's EPS?
RESIDEO TECHNOLOGIES, INC. has a diluted EPS of $-3.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is REZI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, RESIDEO TECHNOLOGIES, INC. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is REZI stock overvalued or undervalued?
Valuation metrics for REZI: ROE of -18.1% (sector avg: 15%), net margin of -7.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy REZI stock in 2026?
Our dual AI analysis gives RESIDEO TECHNOLOGIES, INC. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is REZI's free cash flow?
RESIDEO TECHNOLOGIES, INC.'s operating cash flow is $-1.1B, with capital expenditures of $116.0M. FCF margin is -16.8%.
How does REZI compare to other Default stocks?
Vs Default sector averages: Net margin -7.1% (avg: 12%), ROE -18.1% (avg: 15%), current ratio 1.91 (avg: 1.8).