Resideo Technologies Inc. Common Stock (REZI)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $128 million in annual free cash flow (2.1% yield on market cap)
• Established organization with 14,800 employees providing operational scale

Concerns

• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Resideo Technologies Inc. Common Stock is a small-cap industrials company valued at $6.1 billion. The business generates $7.6 billion in annual revenue with a 1.5% net margin and $128 million in free cash flow. From a quality standpoint, Resideo shows distressed Altman Z-Score of 1.2 warrants caution and negative ROE indicating losses. On valuation, the stock is solid 4.3% FCF yield. Growth dynamics show revenue growing at 2.0% and profit growth of 491.3%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $128 million in annual free cash flow (2.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer