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REZI

BEARISH
$40.14 Live
Resideo Technologies, Inc. · NYSE
Target $49.0 (+22.1%)
$17.22 52W Range $45.29

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AI Analysis

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Confidence
85%
The deterministic health profile is critically weak, headlined by a Piotroski F-Score of 0/9, indicating severe deterioration across all financial health dimensions. While the stock has seen a massive 1-year price surge of 137.2%, this is fundamentally unsupported by a negative profit margin (-7.05%) and a negative ROE (-16.93%). Despite a low Price/Sales ratio of 0.81 and a reasonable forward P/E, the combination of stagnant revenue growth (2%) and a bearish technical trend (10/100) suggests the recent rally was speculative rather than fundamental. The lack of an Altman Z-Score and Graham Number further complicates valuation, but the underlying health metrics are a significant red flag.

Key Strengths

Low Price-to-Sales ratio (0.81) suggests potential undervaluation relative to revenue
Strong current ratio (1.91) indicates adequate short-term liquidity
Positive operating margin (9.08%) despite overall net losses
Significant 1-year price appreciation (+137.2%) showing strong historical momentum
Forward P/E of 12.82 is relatively attractive if earnings stabilize

Key Risks

Critical financial health failure as evidenced by a 0/9 Piotroski F-Score
Negative profitability with a profit margin of -7.05% and ROE of -16.93%
Stagnant top-line growth with YoY revenue growth of only 2.00%
Bearish technical trend (10/100) suggesting a potential trend reversal
High volatility in earnings with a recent Q/Q EPS decline of -43.8%

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