Resideo Technologies Intrinsic Value Calculator – Resideo Technologies Leverages Focus on Margin to Counter Volume Concerns
June 14, 2023

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Resideo Technologies ($NYSE:REZI) is a leading global provider of home comfort and security solutions, and has sought to counter volume concerns by focusing on increasing their margins. This strategy allows them to increase profit by improving their efficiency, even as volume of sales may decline. Resideo Technologies’ products and services range from thermostats and security systems to water heaters, as well as more specialized offerings for professionals in the industry. They have specialized teams that focus on developing innovative products to meet the ever-changing needs of consumers. The company has also adopted a business model that focuses on leveraging technology to drive efficiency and improve margins.
This has enabled them to increase their margins even in an environment of declining demand and pricing pressures from competitors. Through this strategy, Resideo Technologies is able to maximize profits and continue to invest in research and development, allowing them to stay ahead of the competition. Resideo Technologies’ focus on margin has allowed them to remain competitive and profitable during difficult times. This focus is helping the company remain successful in a challenging market and will likely continue to be an important factor in their success for years to come.
Stock Price
Resideo Technologies made waves on Tuesday when their stock opened at $17.7 and closed at the same price, up by 1.0% from prior closing price of 17.5. This marked a positive turn for the company who have been concerned about decreasing volume in the market due to the pandemic. In order to combat these losses, RESIDEO TECHNOLOGIES have focused on improving their margin, and this strategy appears to have paid off as their stock price has held steady. They have looked into optimizing resources and eliminating unnecessary expenses in order to tighten up their margin and maximize profitability.
The firm also has a strong presence online, which has been a growing trend throughout the pandemic as more people shop and work online. By leveraging their digital capabilities, they are able to remain competitive and reach new customers. This has allowed them to hold steady in the face of volume concerns, making them a solid investment option for those looking for stability. 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 |
| 6.41k | 253 | 4.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Resideo Technologies. More…
| Operations | Investing | Financing |
| 207 | -125 | -28 |
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 |
| 6.4k | 3.79k | 17.7 |
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 |
| 9.0% | 43.7% | 6.9% |
| FCF Margin | ROE | ROA |
| 1.9% | 10.8% | 4.3% |
Analysis – Resideo Technologies Intrinsic Value Calculator
At GoodWhale, we have conducted an analysis of the fundamentals of RESIDEO TECHNOLOGIES. Through our proprietary Valuation Line, we have determined the intrinsic value of their share to be around $23.2. Currently, their stock is being traded at $17.7, which means that it is currently undervalued by 23.8%. This presents an attractive opportunity for investors to purchase RESIDEO TECHNOLOGIES stock at a discounted price. 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 is an attractive investment option for those seekiing long-term growth. The company has a well-established portfolio of products and services, and is well-positioned to capitalize on the growing trend of home automation. The company’s focus on margins will ensure it can remain competitive, even if the overall market volume decreases. Resideo Technologies also has a strong balance sheet and a solid cash position that gives it the flexibility to pursue further opportunities.
Additionally, the company has a history of meeting or exceeding analyst expectations, which is likely to continue. Overall, Resideo Technologies is well-positioned for long-term growth and could be a rewarding investment for those seeking to capitalize on the growing trend of home automation.
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