Added to YB: 2026-08-21
Pitch date: 2026-08-21
REZI [bullish]
Resideo Technologies, Inc.
Author Info
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Company Info
Resideo Technologies, Inc. develops, manufactures, sells, and distributes comfort, energy management, and safety and security solutions in the United States, Europe, and internationally.
Market Cap
$3.1B
Pitch Price
N/A
Price Target
N/A
Dividend
N/A
EV/EBITDA
7.32
P/E
8.14
EV/Sales
0.90
Sector
Building Products
Category
special_situation
Post-earnings cluster dip buy. Growing faster than peers at lower multiple.
REZI (earnings): Stock -20% on soft guidance: continuing-co (post-Aug'26 ADI spin) Q2 P&S rev +4% YoY, but FY26 guide only 'almost 3%' vs LT target 4-5%, as a security customer's vertical integration cuts H2 rev ~$40-50mm (~1.5% FY hit); Q3 flagged as hardest cost quarter with incomplete pricing offset. Positives: GM +70bp to 43.6% (13th straight qtr of YoY GM expansion), adj EBITDA +6% at 25.5% margin (+40bp). Author argues screened EV/EBITDA (11.7x) is overstated—pro-forma net debt ~$1.95bb puts it sub-10x vs peers ~11x with slower growth/lower margins. Thesis: re-rate to/above peers as EV cleans up in next filings, FY27 guide improves, comps ease H2'27, plus optionality on eventual housing recovery. Cluster insider buying incl first-ever GC purchase near $20.58.
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