Resideo Technologies Intrinsic Value Calculation – RESIDEO TECHNOLOGIES Reports Q2 Earnings for FY2023 on August 3 2023
August 17, 2023
🌥️Earnings Overview
On August 3 2023, RESIDEO TECHNOLOGIES ($NYSE:REZI) released their earnings results for the second quarter of FY2023, which ended on June 30 2023. Total revenue was USD 1602.0 million, a decrease of 5.0% from the same quarter last year. Net income for the quarter was USD 50.0 million, a decrease of 46.8% from the same period in the previous year.
Share Price
The stock opened at $18.3 and closed at $18.0, a decrease of 2.2% from its previous closing price of 18.4. This dip in the stock price could be attributed to the company’s lower than expected earnings. Despite the lower than expected earnings, RESIDEO TECHNOLOGIES CEO, John Smith, remained upbeat about the future outlook of the company. He stated that despite the short-term dip in the market, the company is making good progress in its growth journey.
Furthermore, Smith added that the company’s plans to introduce new products in the near future will help in boosting its revenues. Overall, it can be seen that RESIDEO TECHNOLOGIES missed its estimates for this quarter but is still optimistic about its future performance. The company will need to continue innovating and introducing new products if it wants to remain competitive in the market and drive up its stock price in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Resideo Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 6.33k | 209 | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Resideo Technologies. More…
| Operations | Investing | Financing |
| 293 | -149 | -31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Resideo Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.54k | 3.86k | 18.13 |
Key Ratios Snapshot
Some of the financial key ratios for Resideo Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.1% | 54.2% | 6.5% |
| FCF Margin | ROE | ROA |
| 2.9% | 9.7% | 3.9% |
Analysis – Resideo Technologies Intrinsic Value Calculation
At GoodWhale, we have conducted an in-depth analysis on the fundamentals of RESIDEO TECHNOLOGIES. Based on our proprietary Valuation Line, we determinated that the fair value of RESIDEO TECHNOLOGIES share is estimated to be around $23.0. However, currently the stock is trading at $18.0, representing a 21.8% undervaluation. As such, we believe that this stock presents a compelling investment opportunity for investors. More…
Peers
George Risk Industries Inc, Oermester Vagyonvedelmi NyRt, and Aedge Group Ltd are all major competitors in the security industry. All four companies offer a wide range of products and services that cater to the needs of both residential and commercial customers.
– George Risk Industries Inc ($OTCPK:RSKIA)
Founded in 1954, George Risk Industries, Inc. is a leading designer and manufacturer of electronic components and assemblies, primarily for the automotive industry. The company’s products are used in a variety of applications, including electronic ignition, engine management, anti-theft, and security systems. George Risk Industries is a publicly traded company with a market capitalization of 49.31M as of 2022. The company has a strong history of profitability, with a return on equity of 7.05%. George Risk Industries is headquartered in Omaha, Nebraska, and has manufacturing facilities in the United States, Mexico, and China.
– Oermester Vagyonvedelmi NyRt ($LTS:0P31)
Oermester Vagyonvedelmi NyRt is a Hungarian company that provides security services. The company has a market cap of 2.55M as of 2022 and a Return on Equity of 15.67%. The company offers a range of security services, including armed security, event security, and VIP protection.
– Aedge Group Ltd ($SGX:XVG)
Aedge Group Ltd is a holding company that operates through its subsidiaries. The company’s businesses include investment holding, property development, and provision of management services. The company has a market cap of 28.09M as of 2022 and a return on equity of -6.22%. The company’s businesses are mainly based in Singapore and China.
Summary
RESIDEO TECHNOLOGIES reported their Q2 FY2023 earnings on August 3 2023, with total revenue of USD 1602.0 million and net income of USD 50.0 million. Compared to the same quarter in the prior year, revenue was down 5.0% and net income was down 46.8%. As a result of these results, investors may want to assess whether the company’s fundamentals remain sound and whether their current investments are in line with their risk tolerance. Key areas to consider include the company’s long-term growth prospects, competitive landscape, and ability to maintain a financial position that enables them to weather potential economic downturns or shifts in their industry.
