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Momentum Stock Watch: Resideo Technologies Inc. (REZI)

-- Sunday, March 1, 2020, 16:16 --

Company Profile:

Resideo Technologies, Inc. provides critical comfort, thermal, and security solutions primarily in residential environments in the United States, Europe, and internationally. It provides its products under the Honeywell Home brand. Resideo has a presence in more than 150 million homes, with 15 million systems installed in homes each year. They continue to serve more than 110,000 contractors through leading distributors, including ADI Global Distribution business, which exports to more than 100 countries from more than 200 stocking locations around the world. Resideo Technologies, Inc. was incorporated in 2018 and is based in Austin, Texas.

Recent News:

For the fourth quarter of 2019, the company reported net revenue of $1.3 billion, up 3% year-over-year on a GAAP basis and 4% on a constant currency basis. GAAP Net Loss of $9 million; adjusted Net Income of $48 million, or $83 million excluding Honeywell reimbursement agreement cash payments.

For the full year of 2019, the company reported net revenue of $5.0 billion, up 3% year-over-year on a GAAP basis and 5% on a constant currency basis. GAAP Net Income of $36 million; adjusted Net Income of $135 million, or $275 million excluding Honeywell reimbursement agreement cash payments.


On Feb. 10, 2020, the company announced it has acquired privately held Herman ProAV, based in Miramar, Fla. The newly acquired company is a leading provider and distributor of professional audio-visual (AV) products, procurement services and labor resources to systems integrators in the commercial audio-visual industry.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

REZI’s strengths can be seen in its strong profitability and robust solvency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator and the RSI stands at 54.41 with positive bias. We rate Resideo Technologies Inc. (REZI) a STRONG BUY.

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