Is the business good?
How good a business is REZI?
Resideo Technologies, Inc. earns 6.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.9%
Return on invested capital · cost of capital 9.0% · 2.1 points below what the capital costs: growth destroys value
- Operating margin
- 6.9%
Operating margin · Industrial Distribution median 8.5% · 12 months to Q2 2026
- Share count, year on year
- +3.4%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 2.4%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 6.1% |
| FY2021 | 9.6% |
| FY2022 | 9.6% |
| FY2023 | 8.8% |
| FY2024 | 7.7% |
| FY2025 | 8.1% |
Details›
- Gross margin12 months to Q2 2026
- 30%
- Operating margin12 months to Q2 2026
- 6.9%
- Net margin12 months to Q2 2026
- 5.6%
- Free cash flow margin
- −18%
- R&D as % of revenue
- 2.4%
- Revenue, trailing twelve months
- $7.65B
- Free cash flow, trailing twelve months
- −$1.40B
- Net income, trailing twelve months
- $427M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Industrial Distribution
Ranks #16 of 17 by Smart Score