Resideo Technologies: Recent Returns and Business Mix
Resideo Technologies (REZI) has seen mixed share performance recently, with a 1 day return of 1.87%, a 3.34% decline over the past week, and a 6.22% decline over the past month. Over the past 3 months, the stock is down 2.89%, with a year to date decline of 4.44%.
Looking further back, total return stands at 85.74% over the past year, 94.44% over 3 years, and 21.26% over 5 years. The company last closed at $33.60, with a market value of about $5.18b.
Resideo generates revenue of $7,472.0 million across two main segments. Products & Solutions contributes $2,688.0 million, while ADI Global Distribution accounts for $4,784.0 million. By region, the United States provides $5,817.0 million of revenue, Europe $1,098.0 million, and other international markets $557.0 million.
The business focuses on comfort, energy management, and safety and security solutions, along with low voltage security and audio visual distribution. Revenue growth is 3.87% on an annual basis. Net income growth is described as very large, with the company currently reporting a net loss of $562.0 million on revenue of $7,472.0 million.
See our latest analysis for Resideo Technologies.
Resideo’s recent share price return has softened, with 1 month and year to date share price declines set against a much stronger 1 year total shareholder return. This suggests earlier momentum has cooled as investors reassess the balance between growth potential and ongoing losses.
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With recent share price softness, a value score of 5, and a discount to analyst price targets and intrinsic estimates, the key question is whether Resideo is genuinely undervalued or if markets already reflect its future growth.
Most Popular Narrative: 25.3% Undervalued
Resideo’s most followed narrative places fair value at $45, compared with the recent close at $33.60, framing a sizeable valuation gap for investors to weigh.
The planned separation of the ADI segment and portfolio optimization are set to sharpen strategic focus and resource allocation, enabling both entities to better address evolving industry needs and unlock potential value, with positive implications for operating leverage, margin profile, and long-term earnings power.
Curious what kind of revenue mix, margin lift, and earnings profile are baked into that fair value estimate? The full narrative lays out a detailed playbook of top line assumptions, margin rebuild, and the future earnings multiple needed for Resideo to close that gap.
Result: Fair Value of $45 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upside story can be challenged if big tech competition squeezes pricing or if direct to consumer models weaken Resideo’s installer dependent distribution.
Find out about the key risks to this Resideo Technologies narrative.
Next Steps
With a mix of optimism and concern running through this story, it helps to look at the data yourself and then move quickly to form a clear view using the 3 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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