Resideo Technologies

REZI on NYSE. Resideo sells heating, security, and safety controls to homeowners and businesses. Market value $2.8bn.

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Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Should I look at this?

Worth a closer look

Read what could go wrong

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
-49.6%low

For every $100 of what the whole company costs, it produced $-49.64 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
11.2×fair

You pay 11.2 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
12.2%five-year median

Each dollar kept in the business earns 12 cents a year. Above 10 is good.

Quality score: 82 of 100. Price score: 66 of 100. Our list needs 70 on quality and 60 on price.

$18.56 a share, 6% above its 1-year low

Over the past year the price has ranged from $17.51 to $31.52.

Pays no dividend

Prices from Monday’s close (5 October).

Five years of cash, in billions

0.3
0.1
0.3
0.4
-1.3
-1.4
2021202220232024202512 monthsto Jun '26
Revenue
$5.8bn$6.4bn$6.2bn$6.8bn$7.5bn
Operating margin
9.6%9.6%8.8%7.7%8.1%
Debt to equity
0.550.570.520.611.11
Shares outstanding
0.15bn0.15bn0.15bn0.15bn0.15bn

Health checks

  • Free cash flow positive4 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)3 of 9
  • Profit backed by cash (accruals)Yes
  • Debt1.11× equity
  • Revenue growth, five yearsSlow, 8.1% a year
  • Buying back its own sharesRoughly flat

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $2 billion last quarter, up 2% on a year ago.
  • Profit: $97 million, after a loss of $825 million a year ago.
  • It keeps 7 cents of each $1 of sales as operating profit, down from 8 cents a year earlier.
  • Over the past 12 months it spent $1.4 billion more cash than it brought in. A year earlier it had $390 million spare.
  • 3% more shares than a year ago. Each share owns a bit less of the company.
  • Debt is $3.1 billion more than cash, up from $1.3 billion a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$1.8bn
December 2024$1.9bn
March 2025$1.8bn
June 2025$1.9bn
September 2025$1.9bn
December 2025$1.9bn
March 2026$1.9bn
June 2026$2.0bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$20m
December 2024$23m
March 2025$6m
June 2025-$825m
September 2025$156m
December 2025$136m
March 2026$38m
June 2026$97m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
24 February 2026
Next quarterly (estimated, 10-Q)
11 November 2026

Who owns it

11 long-term investors we follow own it, unchanged from 11 last quarter. 435 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

5 investors own more than 5%.

  • CD&R Investment Associates XII, Ltd.
    at least 19.9%+1.6 pts
    (filed with 2 related holders)
    Since 11 November 2025
  • CD&R Channel Holdings II, L.P.
    at least 19.7%−0.2 pts
    (filed with 3 related holders)
    Since 31 July 2026
    What they said

    Item 4 of the Schedule 13D is hereby amended and supplemented by inserting the following at the end thereof. On July 30, 2025, the Issuer announced its intention to separate its global specialty distributor segment from the Issuer into a new publicly traded company named ADI…

    Read the filing
  • BlackRock, Inc.
    Passive investor
    13.3%−1.8 pts
    Since 30 September 2025
  • FMR LLC
    Passive investor
    at least 11.0%+3.3 pts
    (filed with 1 related holder)
    Since 31 August 2026
  • 5.0%
    Since 31 March 2026
  • Ariel Investments
    Passive investor
    Sold down below 5%
    Since 30 September 2025
  • Boston Partners
    Passive investor
    Sold down below 5%
    Since 30 September 2025
  • Sold down below 5%
    Since 30 September 2025
  • STATE STREET CORPORATION
    Passive investor
    Sold down below 5%
    Since 30 September 2025
  • The Vanguard Group
    Passive investor
    Sold down below 5%
    Since 13 March 2026

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 4 insiders bought $1m of shares on the open market.

Cluster buy3 insiders bought within 30 days (14 August 2026 to 17 August 2026).
  • Mehta Amit Ashvin
    SVP, Strategy & Business Ops
    Bought
    Date
    17 August 2026
    Shares
    10,928
    Price
    $20.68
    Value
    $225,999
  • Foster Joshua Peter
    SVP, GC & Corp Sec
    Bought
    Date
    14 August 2026
    Shares
    15,317
    Price
    $20.58
    Value
    $315,224
  • SURRAN THOMAS A
    President and CEO, Director
    Bought
    Date
    14 August 2026
    Shares
    15,000
    Price
    $20.46
    Value
    $306,900
  • TEICH ANDREW C
    Director
    Bought
    Date
    10 November 2025
    Shares
    8,149
    Price
    $30.68
    Value
    $250,000

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 24 Feb 2026, plus the 10-Q filed 12 Aug 2026 and 10 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

What changed in the risks this year

Companies must list what could hurt them each year. These are the parts that changed since last year’s report.

  • The proposed ADI Spin-Off is subject to various risks and uncertainties and may not be completed in accordance with the expected plans or anticipated timeline, or at all, and will involve significant time and expense, which could disrupt or adversely affect our business.

    Could happen
    Resideo’s proposed separation into two independent, publicly traded companies is complex in nature, and unanticipated developments or changes, including changes in the law, the macroeconomic environment, competitive conditions of Resideo’s markets, regulatory approvals or clearances, the uncertainty of the financial markets and challenges in executing the ADI Spin-Off, could delay or prevent the completion of the transaction or cause the transaction to occur on terms or conditions that are different or less favorable than expected. We expect to complete the ADI Spin-Off in the second half of 2026, subject to satisfaction of customary conditions, including among others, final approval from the Resideo Board of Directors, filing and effectiveness of a registration statement on Form 10 with the SEC, receipt of a tax opinion from our advisors and/or private letter ruling from the Internal Revenue Service, satisfactory completion of financing, and receipt of necessary consents and regulatory approvals. There can be no assurance that the conditions to the completion of the ADI Spin-Off will be satisfied or with respect to the ultimate timing of the intended transaction or that it will be completed at all.
    Read more
  • The ADI Spin-Off may not achieve the anticipated benefits and may expose us to additional risks.

    Could happen
    Additionally, there is no assurance that following the ADI Spin-Off each separate company will be successful and we cannot predict whether the market value of our common stock after the intended separation will be, in the aggregate with the shares of the spun-off entity, less than, equal to or greater than the market value of our common stock prior to the separation. The trading price of our common stock may be more volatile prior to, around the time of or following the intended separation.
    Read more
  • The proposed ADI Spin-Off is subject to various risks and uncertainties and may not be completed in accordance with the expected plans or anticipated timeline, or at all, and will involve significant time and expense, which could disrupt or adversely affect our business.

    Could happen
    The process of completing the proposed ADI Spin-Off has been and is expected to continue to be time-consuming and involves significant costs and expenses. The ADI Spin-Off costs may be significantly higher than what we currently anticipate and may not yield a discernible benefit if the ADI Spin-Off is not completed or is not well executed, or if the expected benefits of the ADI Spin-Off are not realized. Executing the proposed ADI Spin-Off will also require significant amounts of management’s time and effort, which may divert management’s attention from operating and growing our business. Further, while it is intended that the transaction will be tax-free to the Company’s stockholders for U.S. federal income tax purposes, there is no assurance that the transaction will qualify for this treatment. If the ADI Spin-Off is ultimately determined to be taxable, either the Company, the spun-off entity and/or the Company’s stockholders could incur income tax liabilities that could be significant.
    Read more
  • Enhanced tariff, import/export restrictions, or other trade barriers may continue to impact global economic conditions.

    Could happen
    On February 20, 2026, the U.S. Supreme Court issued its opinion that the tariffs imposed by the U.S. government under the International Emergency Economic Powers Act (“IEEPA”) were unauthorized. The opinion did not direct refunds or remedies, leaving the decision on that to the lower courts, and it is anticipated that there will be litigation on any remedies set by the lower courts. On a go-forward basis, the U.S. government directed agencies to take measures to cease collection of tariffs, but did not address how or when the tariff collection would stop or whether any refunds should be issued. Further, by a presidential proclamation a new tariff surcharge of not less than 10% was directed under the balance of payments statute ( 19 USC 2132 ) on all imports with certain exceptions for certain commodities (e.g., electronics, critical minerals) and United States-Mexico-Canada Agreement (“USMCA”) qualified products. The tariffs under this statute are intended to take effect on February 24, 2026, and will remain in effect for 150 days (the maximum under the statute). Tariffs have not been previously imposed under this statutory provision. We are currently evaluating the impacts of these actions on our business.
    Read more
  • A spin-off of ADI Global Distribution business could adversely affect our earnings and cash flows.

    Could happen
    ADI Global Distribution business contributed 64% of our revenue and 35% of our operating income during the twelve months ended December 31, 2025. If the ADI Spin-Off is completed, it may adversely affect our earnings and cash flows, which in turn may result in our failure to maintain our current credit ratings from independent rating agencies that could adversely affect our cost of capital and our liquidity and access to the capital markets. If our access to capital were to become constrained significantly, or if costs of capital increased significantly, that could have a material adverse impact on our business and results of operations.
    Read more

Read it in the annual report

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.