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Resideo Technologies

REZI
35
Communication Equipment · Technology
Price
$35.83
-1.15 (-3.11%)
Market Cap
$5.43B
Winston Score
35
Winston is serious
Below-average fundamentals — multiple weak pillars.

Resideo Technologies makes products that help keep homes safe and comfortable. Its main products include thermostats, carbon monoxide detectors, smoke alarms, and security sensors sold under the Honeywell Home brand. The company sells to homebuilders, contractors, and retail stores, and it also distributes a wide range of security and low-voltage products to professional installers across North America.

Resideo earns money two ways: selling its own hardware products and running a large distribution business that resells other companies' products to contractors and dealers. It operates mainly in the United States but has some international presence. The Honeywell Home brand gives it strong name recognition, though the company pays royalties to Honeywell for using that name, which pressures margins. The biggest growth opportunity is connecting its devices to smart home platforms, but rising competition from companies like Google Nest and Amazon Ring remains a real and ongoing threat to its market share.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+950.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$167M/ year

Rising (+50% vs prior year)

2.2% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

12.3%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~7 months

$438M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Resideo Technologies has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.4% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 148.4M (2021) → 149.0M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
27.2%
Modest — 27.2% gross margin
Operating Margin
6.9%
Modest — 6.9% operating margin
ROCE
2.1%
Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+8.1%
Steady sales growth (8.1% YoY)
EPS YoY
-1202.2%
Earnings shrinking (-1202.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-17.6%
Burning cash (-17.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
1.11
Elevated debt (1.11)
Interest Cover
3.98x
Tight — interest eats into profit (4.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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