# Resideo Technologies (REZI.US)

Canonical: https://gigainvestors.com/s/REZI

Analysis as of: 2026-10-16T07:31:32.144Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $16.58 per share; close as of 2026-10-15.

Estimated value: low $20.70 per share, central $23.41 per share, high $26.78 per share. Buy at or below the central value $23.41 per share. Valuation as of 2026-10-16T07:31:32.144Z; scenarios are not confidence intervals.

Expected annual return: 13.6% at the stated quote. About 13.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.10×

- FY2018: 0.10×

- FY2019: 0.05×

- FY2020: 0.06×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.09×

- FY2024: 0.08×

- FY2025: 0.09×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 32.2%

- ROIC, second-lowest year: 11.0%

- Typical minus recent gross margin: -0.0 pp

- Typical gross margin (annual median): 27.7%

- Recent gross margin (lower of latest and 3-year median): 27.8%

- Years with nonpositive capital: 3

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: 11.0%

- FY2018: 18.0%

- FY2019: >100%

- FY2020: 6.4%

- FY2021: >100%

- FY2022: 44.4%

- FY2023: 42.9%

- FY2024: 21.4%

- FY2025: 21.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.52×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $494M

- Net income, five-year total: $324M

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 5.3 pp

- Working capital / revenue, final three-year average: 17.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.10×

- FY2022: 1.03×

- FY2023: 0.97×

- FY2024: 1.55×

- FY2025: 0.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.0% vs 21.4%

- Per-share earnings: 1.01 to 0.54 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.7%

- Ordinary dilution, 5-year annual growth: 3.4%

- Market cap gain: $4.0B

- Cumulative retained earnings: $343M

- Diluted shares, 10-year annual growth: 5.7%

- Diluted shares, 5-year annual growth: 3.4%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -7.4%

- Per-share value change: -$0.46

- Per-share value, starting three-year median: $1.01

- Per-share value, ending three-year median: $0.54

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.5%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.3B

- Cumulative net income, 10 years: $585M

- ROIC, first three-year median: 18.0%

- ROIC, last three-year median: 21.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.01

- FY2017: -$2.24

- FY2018: $2.30

- FY2019: $0.20

- FY2020: $0.20

- FY2021: $1.14

- FY2022: $1.32

- FY2023: $0.99

- FY2024: $0.54

- FY2025: -$2.46

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: 7.2%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 4

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.44×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.6%

- FY2017: -9.6%

- FY2018: -1.1%

- FY2019: 0.3%

- FY2020: -3.7%

- FY2021: -1.2%

- FY2022: 2.1%

- FY2023: -3.5%

- FY2024: -4.0%

- FY2025: 7.2%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 62% since Sep 2025 · "REZI Q2 Deep Dive: Lower Guidance and Segment Weakness Offset Solid Product Demand" (finance.yahoo.com, Aug 2026) · sales +10.5%

Story as of 2026-10-16T09:59:29.532Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.8% a year for ten years

- 2025-05-19: REZI Q1 Earnings Call: Pricing Actions and Tariff Mitigation Drive Outperformance ([finance.yahoo.com](https://finance.yahoo.com/news/rezi-q1-earnings-call-pricing-133455014.html))

- 2025-07-31: Resideo Tech (REZI) Jumps as Firm Slashes $140-Million Annual Obligations ([finance.yahoo.com](https://finance.yahoo.com/news/resideo-tech-rezi-jumps-firm-100817202.html))

- 2025-08-12: Resideo Technologies Pops As Honeywell Indemnity Buyout Boosts Growth Story ([finance.yahoo.com](https://finance.yahoo.com/news/resideo-technologies-pops-honeywell-indemnity-180735165.html))

- 2025-11-05: Resideo (NYSE:REZI) Misses Q3 Revenue Estimates, Stock Drops 19.6% ([finance.yahoo.com](https://finance.yahoo.com/news/resideo-nyse-rezi-misses-q3-222933758.html))

- 2026-02-27: Resideo Technologies (REZI) Is Up 12.0% After Issuing Stronger‑Than‑Expected 2026 Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/resideo-technologies-rezi-12-0-121212676.html))

- 2026-08-17: REZI Q2 Deep Dive: Lower Guidance and Segment Weakness Offset Solid Product Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rezi-q2-deep-dive-lower-000500312.html))

### Sales · FY2024–2025

sales +10.5%; source https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm; observed 2026-02-24.

- FY2016: $4.5B 

- FY2017: $4.5B 

- FY2018: $4.8B 

- FY2019: $5.0B 

- FY2020: $5.1B 

- FY2021: $5.8B 

- FY2022: $6.4B 

- FY2023: $6.2B 

- FY2024: $6.8B 

- FY2025: $7.5B 

### Gross margin · FY2025

gross margin 27.8%; source https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm; observed 2026-02-24.

- FY2016: 30.6% 

- FY2017: 29.1% 

- FY2018: 29.5% 

- FY2019: 25.6% 

- FY2020: 25.9% 

- FY2021: 27.1% 

- FY2022: 27.7% 

- FY2023: 27.2% 

- FY2024: 28.1% 

- FY2025: 27.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in industrial distribution; annual sales are USD 7.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm (filed 2026-02-24); FY2025: revenue 7472000000; grossProfit 2074000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); REZI.US: 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 segment. The Products and Solutions segment offers temperature and humidity control, water and air solutions, smoke and carbon monoxide detection home safety products, residential and small business security products, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home, First Alert, Resideo, Braukmann, and BRK brand names. The company sells its products and services through a network of professional contractors, installers and integrators, distributors, and original equipment manufacturers, as well as retailers and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

### Why customers stay

Margins ranged from 27.2% to 28.1% during 2023–25; it earns 32.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 27.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 28.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 27.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,1.313265306122449],[2017,0.11010658545869813],[2018,0.1803218727139722],[2019,9.316666666666666],[2020,0.06407290015847861],[2021,4.913125590179415],[2022,0.44384921042364],[2023,0.429236029370551],[2024,0.21405953134895503],[2025,0.21276890756302522]]; median 0.321647780359753. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 28% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.2709544988026001],[2022,0.2772370486656201],[2023,0.2717077859660365]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 2 of 10 years; bought back USD 29 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 7000000; upkeep 64000000; cash acquisitions 120000000; owner earnings 177000000. Growth capex plus acquisitions / owner earnings = 0.7175141242937854.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 15000000; upkeep 66000000; owner earnings 405000000. Growth capex / owner earnings = 0.037037037037037035.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 9769866.391651064; upkeep 85230133.60834894; cash acquisitions 17000000; owner earnings 30769866.391651064. Growth capex plus acquisitions / owner earnings = 0.8700026854492504.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 70000000; cash acquisitions 35000000; owner earnings 53000000. Growth capex plus acquisitions / owner earnings = 0.660377358490566.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 63000000; cash acquisitions 11000000; owner earnings 267000000. Growth capex plus acquisitions / owner earnings = 0.04119850187265917.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 85000000; cash acquisitions 665000000; owner earnings 292000000. Growth capex plus acquisitions / owner earnings = 2.2773972602739727.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 105000000; cash acquisitions 16000000; owner earnings 203000000. Growth capex plus acquisitions / owner earnings = 0.07881773399014778.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 80000000; cash acquisitions 1337000000; owner earnings 180000000. Growth capex plus acquisitions / owner earnings = 7.427777777777778.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,12000000],[2025,35000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 29000000 USD.

### Are managers owners

Insiders own 1.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); REZI.US SharesStats.PercentInsiders = 1.6119999999999999 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 3.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate -0.06690191335708556. Price 16.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.109748271830328 → FY2025 -2.0923531032679. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-10: $21.04 per share

- 2018-11: $20.62 per share

- 2018-12: $20.54 per share

- 2019-01: $21.92 per share

- 2019-02: $25.69 per share

- 2019-03: $19.28 per share

- 2019-04: $22.69 per share

- 2019-05: $19.67 per share

- 2019-06: $21.91 per share

- 2019-07: $18.85 per share

- 2019-08: $13.77 per share

- 2019-09: $14.34 per share

- 2019-10: $9.53 per share

- 2019-11: $9.78 per share

- 2019-12: $11.92 per share

- 2020-01: $10.18 per share

- 2020-02: $10.74 per share

- 2020-03: $4.84 per share

- 2020-04: $5.13 per share

- 2020-05: $7.06 per share

- 2020-06: $11.71 per share

- 2020-07: $13.27 per share

- 2020-08: $13.35 per share

- 2020-09: $10.99 per share

- 2020-10: $10.08 per share

- 2020-11: $18.48 per share

- 2020-12: $21.25 per share

- 2021-01: $23.09 per share

- 2021-02: $24.01 per share

- 2021-03: $28.24 per share

- 2021-04: $30.00 per share

- 2021-05: $29.89 per share

- 2021-06: $29.99 per share

- 2021-07: $29.49 per share

- 2021-08: $32.22 per share

- 2021-09: $24.78 per share

- 2021-10: $24.65 per share

- 2021-11: $26.08 per share

- 2021-12: $26.02 per share

- 2022-01: $24.77 per share

- 2022-02: $25.73 per share

- 2022-03: $23.82 per share

- 2022-04: $22.48 per share

- 2022-05: $23.61 per share

- 2022-06: $19.41 per share

- 2022-07: $22.50 per share

- 2022-08: $20.81 per share

- 2022-09: $19.05 per share

- 2022-10: $23.61 per share

- 2022-11: $16.19 per share

- 2022-12: $16.44 per share

- 2023-01: $19.22 per share

- 2023-02: $18.33 per share

- 2023-03: $18.27 per share

- 2023-04: $17.79 per share

- 2023-05: $16.02 per share

- 2023-06: $17.65 per share

- 2023-07: $18.71 per share

- 2023-08: $16.85 per share

- 2023-09: $15.79 per share

- 2023-10: $14.47 per share

- 2023-11: $16.42 per share

- 2023-12: $18.81 per share

- 2024-01: $16.76 per share

- 2024-02: $22.32 per share

- 2024-03: $22.41 per share

- 2024-04: $19.52 per share

- 2024-05: $21.59 per share

- 2024-06: $19.55 per share

- 2024-07: $22.71 per share

- 2024-08: $20.15 per share

- 2024-09: $20.13 per share

- 2024-10: $19.66 per share

- 2024-11: $27.17 per share

- 2024-12: $23.04 per share

- 2025-01: $22.51 per share

- 2025-02: $19.20 per share

- 2025-03: $17.69 per share

- 2025-04: $16.77 per share

- 2025-05: $20.69 per share

- 2025-06: $22.05 per share

- 2025-07: $27.29 per share

- 2025-08: $34.03 per share

- 2025-09: $43.16 per share

- 2025-10: $42.78 per share

- 2025-11: $32.97 per share

- 2025-12: $35.10 per share

- 2026-01: $34.24 per share

- 2026-02: $38.68 per share

- 2026-03: $33.69 per share

- 2026-04: $41.35 per share

- 2026-05: $31.25 per share

- 2026-06: $31.08 per share

- 2026-07: $34.28 per share

- 2026-08: $19.36 per share

- 2026-09: $18.15 per share

- 2026-10: $16.58 per share

## Annual estimated value (USD per share)

- FY2019: low $10.28 per share, central $11.68 per share, high $13.54 per share

- FY2020: low $5.49 per share, central $5.94 per share, high $6.52 per share

- FY2021: low $6.23 per share, central $6.67 per share, high $7.24 per share

- FY2022: low $15.78 per share, central $17.83 per share, high $20.55 per share

- FY2023: low $12.84 per share, central $14.27 per share, high $16.19 per share

- FY2024: low $13.82 per share, central $15.37 per share, high $17.43 per share

- FY2025: low $14.92 per share, central $16.80 per share, high $19.13 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1740332/000174033226000005/rezi-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.