📊 REZI Key Takeaways
Is Resideo Technologies, Inc.. (REZI) a Good Investment?
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.
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
- 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
- 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
- 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
- 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 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
- Free cash flow margin
- Operating cash flow and working-capital swings
Resideo Technologies, Inc.. (REZI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Resideo Technologies, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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.
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: Revenue growth of 10.5% YoY shows top-line expansion. Gross margin of 29.4% indicates reasonable product economics. 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: 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. 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 $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 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 -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 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 Market stocks?
Vs Default sector averages: Net margin -7.1% (avg: 12%), ROE -18.1% (avg: 15%), current ratio 1.91 (avg: 1.8).