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As used herein, unless the context otherwise dictates, the term Resideo , the Company , we , us , or our means Resideo Technologies, Inc. and its consolidated subsidiaries. Our common stock began trading under the ticker symbol REZI on the New York Stock Exchange ( NYSE ) on October 29, 2018.
Operating margin is thin at 8.12%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 10.5%, still solid. Free cash flow declined 444% despite revenue growth, conversion is weakening.
Free cash flow declined 444% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$1.25B. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$7.61B
▲ +10.5% YoY
Net Income (TTM)
-$495M
▼ -554.3% YoY
Op. Margin
7.08%
▲ +0.4pp YoY
ROIC
7.66%
▲ +0.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$1.34B
▼ -444.2% YoY
Op. Cash Flow (TTM)
-$1.22B
▼ -356.1% YoY
Net Debt
$3.08B
Cash & Equiv.
$438M
5Y CAGR: +8.1%
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