DB:3RT

Stock Analysis Report

Resideo Technologies

Executive Summary

Resideo Technologies, Inc. provides critical comfort, thermal, and security solutions primarily in residential environments in the United States, Europe, and internationally.

Snowflake

Fundamentals

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has Resideo Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

3RT

3.1%

DE Building

2.8%

DE Market


1 Year Return

n/a

3RT

1.3%

DE Building

2.9%

DE Market

Return vs Industry: Insufficient data to determine how 3RT performed against the German Building industry.

Return vs Market: Insufficient data to determine how 3RT performed against the German Market.


Share holder returns

3RTIndustryMarket
7 Day3.6%3.1%2.8%
30 Day-8.8%3.2%-0.2%
90 Day-28.8%-1.4%0.9%
1 Yearn/a2.7%1.3%6.2%2.9%
3 Yearn/a13.7%4.3%18.2%8.0%
5 Yearn/a67.5%47.1%43.1%23.6%

Price Volatility Vs. Market

How volatile is Resideo Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Resideo Technologies undervalued based on future cash flows and its price relative to the stock market?

4.83x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 3RT (€12.68) is trading above our estimate of fair value (€2.8)

Significantly Undervalued: 3RT is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 3RT is good value based on its PE Ratio (4.8x) compared to the Building industry average (17.1x).

PE vs Market: 3RT is good value based on its PE Ratio (4.8x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: 3RT is poor value based on its PEG Ratio (2x)


Price Based on Value of Assets

PB vs Industry: 3RT is good value based on its PB Ratio (1.1x) compared to the DE Building industry average (1.1x).


Next Steps

Future Growth

How is Resideo Technologies expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 3RT's forecast earnings growth (2.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 3RT's earnings (2.4% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: 3RT's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3RT's revenue (4.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 3RT's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 3RT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Resideo Technologies performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3RT's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: 3RT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3RT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Building industry (-10.5%).


Return on Equity

High ROE: 3RT's Return on Equity (22.8%) is considered high.


Return on Assets

ROA vs Industry: 3RT has a higher Return on Assets than the Building industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 3RT's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Resideo Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 3RT's short term assets (€1.8B) exceeds its short term liabilities (€1.6B)

Long Term Liabilities: 3RT's short term assets (€1.8B) do not cover its long term liabilities (€2.0B)


Debt to Equity History and Analysis

Debt Level: 3RT's debt to equity ratio (74.8%) is considered high

Reducing Debt: Insufficient data to determine if 3RT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3RT's debt is not well covered by operating cash flow (14%).

Interest Coverage: 3RT's interest payments on its debt are not well covered by EBIT (0.3x coverage).


Balance Sheet

Inventory Level: 3RT has a high level of physical assets or inventory.

Debt Coverage by Assets: 3RT's debt is covered by short term assets (assets are 1.549950x debt).


Next Steps

Dividend

What is Resideo Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate 3RT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3RT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 3RT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3RT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3RT's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Resideo Technologies's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Mike Nefkens (50yo)

1yrs

Tenure

US$5,433,958

Compensation

Mr. Michael G. Nefkens, also known as Mike, serves as President and Chief Executive Officer of Homes Business of Honeywell International Inc. since May 14, 2018. He is Chief Executive Officer of Resideo Te ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mike's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Board Age and Tenure

1.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 3RT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$88,37612 Jun 19
Niccolo de Masi
EntityIndividual
Shares4,837
Max PriceUS$18.27
BuyUS$44,06706 Jun 19
Stephen Kelly
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,530
Max PriceUS$17.42
BuyUS$112,30705 Jun 19
Joseph Ragan
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares6,300
Max PriceUS$17.83
BuyUS$90,06124 May 19
Michael Nefkens
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares4,964
Max PriceUS$18.14
SellUS$1,39516 May 19
Stephen Kelly
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares69.13
Max PriceUS$20.18
SellUS$2,09816 May 19
Jeannine Lane
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares103.96
Max PriceUS$20.18
SellUS$2,79813 May 19
Michael Flink
EntityIndividual
Role
Head of Sales
Chief Marketing & Sales Officer and Executive VP
Shares138.6
Max PriceUS$20.19
BuyUS$451,95314 Mar 19
Roger Fradin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares25,000
Max PriceUS$18.08
BuyUS$67,46217 Dec 18
Jeannine Lane
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,400
Max PriceUS$19.84
BuyUS$29,89617 Dec 18
Michael Flink
EntityIndividual
Role
Head of Sales
Chief Marketing & Sales Officer and Executive VP
Shares1,500
Max PriceUS$19.93
BuyUS$4,27817 Dec 18
Robert Aarnes
EntityIndividual
Role
Senior Key Executive
President of ADI Global Distribution
Shares220
Max PriceUS$19.45
BuyUS$43,75317 Dec 18
Stephen Kelly
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,300
Max PriceUS$19.02
BuyUS$89,00910 Dec 18
Joseph Ragan
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares4,809
Max PriceUS$18.51
BuyUS$141,19210 Dec 18
Michael Flink
EntityIndividual
Role
Head of Sales
Chief Marketing & Sales Officer and Executive VP
Shares7,500
Max PriceUS$18.83
BuyUS$179,80230 Nov 18
Michael Nefkens
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,000
Max PriceUS$17.98
SellUS$38407 Nov 18
Jack Lazar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares18
Max PriceUS$21.35

Ownership Breakdown


Management Team

  • Joe Ragan (58yo)

    Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: US$1.34m
  • Michael Flink (58yo)

    Chief Marketing & Sales Officer and Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.53m
  • Mike Nefkens (50yo)

    CEO, President & Director

    • Tenure: 1yrs
    • Compensation: US$5.43m
  • Jeannine Lane (57yo)

    Executive VP

    • Tenure: 0yrs
  • Niccolo De Masi (38yo)

    President of Products & Solutions Segment

    • Tenure: 1.8yrs
    • Compensation: US$415.63k
  • Steve Kelly (50yo)

    Chief Human Resources Officer

    • Tenure: 0yrs
    • Compensation: US$1.37m
  • Robert Aarnes (50yo)

    President of ADI Global Distribution

    • Tenure: 0yrs
    • Compensation: US$1.14m
  • Michael Mercieca

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Trent Perrotto

    Senior Director of Corporate and Digital Communications

    • Tenure: 0yrs

Board Members

  • Sharon Wienbar (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$414.38k
  • Jack Lazar (54yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$419.38k
  • Roger Fradin (66yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$496.88k
  • Mike Nefkens (50yo)

    CEO, President & Director

    • Tenure: 1yrs
    • Compensation: US$5.43m
  • Nina Richardson (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$413.13k
  • Niccolo De Masi (38yo)

    President of Products & Solutions Segment

    • Tenure: 1.8yrs
    • Compensation: US$415.63k
  • Paul Deninger (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$416.88k
  • Andy Teich (58yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$414.38k

Company Information

Resideo Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Resideo Technologies, Inc.
  • Ticker: 3RT
  • Exchange: DB
  • Founded: 2018
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$1.761b
  • Listing Market Cap: US$1.593b
  • Shares outstanding: 122.78m
  • Website: https://www.resideo.com

Number of Employees


Location

  • Resideo Technologies, Inc.
  • 901 East 6th Street
  • Austin
  • Texas
  • 78702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REZINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2018
REZI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2018
3RTMUN (Boerse Muenchen)YesCommon StockDEEUROct 2018
3RTDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2018

Biography

Resideo Technologies, Inc. provides critical comfort, thermal, and security solutions primarily in residential environments in the United States, Europe, and internationally. The company operates in two se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 00:56
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)