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1. Company Snapshot

1.a. Company Description

Resideo Technologies, Inc.develops, manufactures, and sells comfort, residential thermal, and security solutions to the commercial and residential end markets in the United States, Europe, and internationally.The company operates in two segments, Products & Solutions, and ADI Global Distribution.


It offers temperature and humidity control, thermal water, and air solutions; and security panels, sensors, peripherals, wires and cables, communication devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand.In addition, the company distributes security products comprising video, intrusion, and access control products; and smart home, fire, power, audio, ProAV, networking, communication, wire and cable, enterprise connectivity, and structured wiring products to contractors that service non-residential and residential end-users.It sells its products through a network of distributors, original equipment manufacturers, and service providers, as well as retail and online channels.


Resideo Technologies, Inc.was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

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1.b. Last Insights on REZI

Breaking News: Resideo Technologies Inc reported no recent earnings release. However Elo Mutual Pension Insurance Co recently invested $708,000 in the company acquiring 16402 shares. Several other hedge funds have also made changes to their stakes. Analysts recommendations are mixed with some recommending a buy and others a hold. For example one analyst from a reputable firm gave a hold recommendation. Another firm gave a buy recommendation. Resideo Technologies Inc has been making significant moves with various investors.

1.c. Company Highlights

2. Resideo Technologies Delivers Strong FY 2025 Results, Sets Stage for 2026 Growth

Resideo Technologies reported total net revenue of $1.895 billion for the fourth quarter, up 2% year-over-year, including a 1% favorable impact from currency. Net revenue exceeded the high end of the outlook range. Gross margin in the quarter was 29.6%, up 110 basis points year-over-year, driven by continued operating efficiencies of Products & Solutions (P&S) and favorable price and mix at ADI. Adjusted earnings per share was $0.50, at the high end of the outlook range. For the full year 2025, Resideo reported record highs in net revenue, adjusted EBITDA, and adjusted EPS, with P&S growing organic net revenue by 4% year-over-year and ADI growing organic net revenue by 3% year-over-year.

Publication Date: Feb -26

📋 Highlights
  • Business Separation Progress:: Anticipated separation in H2 2026, with ongoing planning and expected Form 10 filing soon.
  • Products & Solutions Growth:: Organic net revenue up 4% YoY in 2025, gross margin expanded 110 bps to 29.6%.
  • ADI Operational Stabilization:: ERP system fully implemented; e-commerce revenue grew 3% YoY despite 50 bps revenue decline in Q4.
  • Total Financial Performance:: Net revenue $1.895B (up 2% YoY), adjusted EPS $0.50 (high end of outlook), exceeding revenue guidance.
  • 2026 Outlook:: ADI growth projected higher than P&S, with margin expansion and $75M synergy acceleration from Snap One acquisition.

Segment Performance

P&S delivered strong results, with net revenue growing 6% year-over-year in the fourth quarter, driven by both volume and price across many product families and sales channels. ADI reported a decline of 50 basis points in net revenue year-over-year, but achieved operational stabilization with the new ERP system. E-commerce net revenue and average daily sales grew 3% year-over-year, continuing the trend of Resideo's digital experience becoming a bigger part of ADI's total revenue.

2026 Outlook

Resideo anticipates both business segments to achieve year-over-year net revenue growth in 2026, with ADI expected to grow at a higher rate than P&S. The company forecasts slightly higher revenue in the second half versus the first half, in line with last year's seasonality. Resideo aims to drive greater operating leverage in 2026 versus 2025, while still investing in both businesses to drive future growth. Analysts estimate next year's revenue growth at 3.9%.

Valuation

With a P/E Ratio of -11.63 and an EV/EBITDA of -68.44, Resideo's valuation multiples indicate a potentially undervalued stock. The company's ROE (%) is -18.1, and ROIC (%) is 9.09. Actual EPS came out at $0.877, significantly beating estimates at $0.47. The stock's current valuation metrics suggest that the market may be underestimating Resideo's growth prospects.

Spin-Off and Growth Initiatives

Resideo's spin-off of ADI is progressing according to plan, with the company expecting to file a public Form 10 in the near future. ADI's product launches are expected to drive growth, with the company confident in its product roadmap. The acquisition of Snap One is also expected to drive growth, with Resideo having accelerated synergies and achieved $75 million in synergies 18 months sooner than expected.

3. NewsRoom

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Elo Mutual Pension Insurance Co Makes New $708,000 Investment in Resideo Technologies, Inc. $REZI

Mar -07

Source: defenseworld.net

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Resideo Technologies, Inc. (REZI) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -04

Source: seekingalpha.com

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Fisher Asset Management LLC Grows Position in Resideo Technologies, Inc. $REZI

Mar -04

Source: defenseworld.net

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Why Resideo Technologies (REZI) Might be Well Poised for a Surge

Mar -03

Source: zacks.com

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Resideo Technologies, Inc. (REZI) Presents at J.P. Morgan 2026 Global Leveraged Finance Conference Transcript

Mar -02

Source: seekingalpha.com

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Why Resideo Technologies Stock Popped on Wednesday

Feb -25

Source: fool.com

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Resideo Technologies (REZI) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -25

Source: zacks.com

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Resideo Technologies, Inc. (REZI) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.97%)

6. Segments

ADI Global Distribution

Expected Growth: 1.8%

ADI Global Distribution's 1.8% growth is driven by increasing demand for smart home security solutions, expansion into new geographic markets, and strategic partnerships with security dealers and integrators. Additionally, Resideo's focus on innovation and product development, such as its AI-powered security systems, contributes to the segment's growth.

Products and Solutions

Expected Growth: 2.2%

Resideo Technologies, Inc.'s 2.2% growth in Products and Solutions is driven by increasing demand for smart home solutions, growth in HVAC and security markets, and expanding distribution channels. Additionally, the company's focus on innovation, strategic partnerships, and cost savings initiatives contribute to its growth momentum.

7. Detailed Products

Honeywell Home T-Series Thermostats

A line of smart thermostats that learn and adapt to a home's temperature preferences to optimize energy efficiency and comfort.

Lyric Security and Home Control Systems

A comprehensive security and home automation system that integrates with various devices and sensors to provide a safe and convenient living experience.

ADT Pulse Security Systems

A smart security system that integrates with various devices and sensors to provide a safe and connected living experience.

First Alert Professional Security Systems

A line of security systems designed for professional installation and monitoring, providing a safe and secure living experience.

DIY Security Systems

A line of self-install security systems that provide a convenient and affordable way to secure a home.

Water Leak Detection Systems

A line of water leak detection systems that detect and alert homeowners to potential water leaks, preventing damage and waste.

Air Purification Systems

A line of air purification systems that remove pollutants and allergens from the air, improving indoor air quality.

8. Resideo Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Resideo Technologies, Inc. faces moderate threat from substitutes due to the presence of alternative smart home solutions and security systems.

Bargaining Power Of Customers

Resideo Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Resideo Technologies, Inc. relies on a few key suppliers for components and manufacturing, giving them some bargaining power, but the company's size and scale mitigate this risk.

Threat Of New Entrants

The smart home and security systems market has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Resideo Technologies, Inc.

Intensity Of Rivalry

The smart home and security systems market is highly competitive, with several established players, including ADT, Vivint, and Ring, which increases the intensity of rivalry for Resideo Technologies, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.49%
Debt Cost 9.89%
Equity Weight 65.51%
Equity Cost 14.56%
WACC 12.95%
Leverage 52.64%

11. Quality Control: Resideo Technologies, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ADT

A-Score: 6.8/10

Value: 8.0

Growth: 6.6

Quality: 6.4

Yield: 5.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Brady

A-Score: 6.1/10

Value: 3.9

Growth: 6.2

Quality: 7.6

Yield: 3.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
MSA Safety

A-Score: 5.7/10

Value: 3.5

Growth: 6.7

Quality: 8.0

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Brinks

A-Score: 5.5/10

Value: 4.7

Growth: 6.6

Quality: 4.3

Yield: 2.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Curtiss-Wright

A-Score: 5.1/10

Value: 1.2

Growth: 6.1

Quality: 6.9

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Resideo Technologies

A-Score: 4.8/10

Value: 8.5

Growth: 5.4

Quality: 4.3

Yield: 0.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.75$

Current Price

34.75$

Potential

-0.00%

Expected Cash-Flows