📊 REZI Key Takeaways
Is Resideo Technologies, Inc.. (REZI) a Good Investment?
Resideo is a cash-burning company masking operational distress with revenue growth. Despite 10.5% revenue growth and positive operating income, the firm generated negative operating cash flow of -$145M and negative free cash flow of -$181M, indicating severe working capital deterioration or operational inefficiency. Combined with minimal returns (ROE 1.3%, ROA 0.5%), high leverage (1.1x debt-to-equity), and tenuous interest coverage (2.5x), the company faces significant financial stress.
Double-digit revenue growth and a solid operating margin are outweighed by a large net loss and deeply negative operating and free cash flow, signaling weak earnings quality and potential working-capital or non-cash charge issues. Liquidity and interest coverage look adequate, but until cash conversion improves and net margins turn positive, the fundamental profile is unfavorable.
Why Buy Resideo Technologies, Inc.. Stock? REZI Key Strengths
- Solid top-line growth of 10.5% year-over-year demonstrates market demand
- Reasonable gross margin of 28.8% provides baseline profitability at production level
- Adequate liquidity with $438M cash and 2.07x current ratio offers near-term breathing room
- 10.5% YoY revenue growth at $7.47B scale
- Positive operating margin (8.1%) with solid gross profit
- Adequate liquidity and strong interest coverage (15.2x)
REZI Stock Risks: Resideo Technologies, Inc.. Investment Risks
- Deeply negative operating cash flow (-$145M) and free cash flow (-$181M) indicate the business cannot self-fund operations or debt service
- Net income collapsed 717% YoY to only $38M, revealing severe profitability deterioration masked by revenue growth
- High leverage (3.2B long-term debt) combined with weak interest coverage (2.5x) and negative FCF creates acute refinancing and solvency risk
- Abysmal returns on capital (ROE 1.3%, ROA 0.5%) demonstrate value destruction despite growth
- Thin net margin of 2.0% leaves no margin for operational error or market downturns
- Severe cash burn (OCF -$1.14B; FCF -$1.25B, -16.8% margin)
- Sustained net losses with negative ROE/ROA indicating poor earnings quality
- Leverage (Debt/Equity 1.11x; $3.23B LT debt) could constrain flexibility if conditions worsen
Key Metrics to Watch
- Operating cash flow - critical reversal needed; negative OCF with positive operating income signals severe working capital problems
- Interest coverage ratio - current 2.5x is precarious; any earnings decline triggers covenant concerns
- Debt-to-equity trajectory - monitor for forced deleveraging or covenant violations
- Net margin trend - determine if -717% decline reflects one-time charges or structural margin compression
- Free cash flow margin
- Operating cash flow and working-capital swings
Resideo Technologies, Inc.. (REZI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.07x current ratio provides a solid financial cushion.
REZI Profit Margin, ROE & Profitability Analysis
REZI vs Market Sector: How Resideo Technologies, Inc.. Compares
How Resideo Technologies, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Resideo Technologies, Inc.. Stock Overvalued? REZI Valuation Analysis 2026
Based on fundamental analysis, Resideo Technologies, Inc.. shows some fundamental concerns relative to the Market 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.
Resideo Technologies, Inc.. Balance Sheet: REZI Debt, Cash & Liquidity
REZI Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
REZI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.8B | $6.0M | $-0.02 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Resideo Technologies, Inc.. Dividends, Buybacks & Capital Allocation
REZI SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are REZI's key strengths?
Claude: Solid top-line growth of 10.5% year-over-year demonstrates market demand. Reasonable gross margin of 28.8% provides baseline profitability at production level. ChatGPT: 10.5% YoY revenue growth at $7.47B scale. Positive operating margin (8.1%) with solid gross profit.
What are the risks of investing in REZI?
Claude: Deeply negative operating cash flow (-$145M) and free cash flow (-$181M) indicate the business cannot self-fund operations or debt service. Net income collapsed 717% YoY to only $38M, revealing severe profitability deterioration masked by revenue growth. ChatGPT: Severe cash burn (OCF -$1.14B; FCF -$1.25B, -16.8% margin). Sustained net losses with negative ROE/ROA indicating poor earnings quality.
What is REZI's revenue and growth?
Resideo Technologies, Inc.. reported revenue of $1.9B.
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 $0.17.
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 May 2026, Resideo Technologies, Inc.. has a SELL rating with 76% 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 1.3% (sector avg: 15%), net margin of 2.0% (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 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 $-145.0M, with capital expenditures of $36.0M. FCF margin is -9.5%.
How does REZI compare to other Market stocks?
Vs Default sector averages: Net margin 2.0% (avg: 12%), ROE 1.3% (avg: 15%), current ratio 2.07 (avg: 1.8).