Resideo Technologies Price To Sales vs. Operating Margin
| REZI Stock | USD 24.51 0.12 0.49% |
Resideo Technologies Price To Sales Ratio |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.31 | 0.2717 |
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| Operating Profit Margin | 0.0887 | 0.0876 |
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| Pretax Profit Margin | 0.0488 | 0.0501 |
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For Resideo Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Resideo Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Resideo Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Resideo Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Resideo Technologies over time as well as its relative position and ranking within its peers.
Resideo |
Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Resideo Technologies. If investors know Resideo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Resideo Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.50) | Earnings Share 1.09 | Revenue Per Share 44.034 | Quarterly Revenue Growth 0.176 | Return On Assets 0.0496 |
The market value of Resideo Technologies is measured differently than its book value, which is the value of Resideo that is recorded on the company's balance sheet. Investors also form their own opinion of Resideo Technologies' value that differs from its market value or its book value, called intrinsic value, which is Resideo Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Resideo Technologies' market value can be influenced by many factors that don't directly affect Resideo Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Resideo Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Resideo Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Resideo Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Resideo Technologies Operating Margin vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Resideo Technologies's current stock value. Our valuation model uses many indicators to compare Resideo Technologies value to that of its competitors to determine the firm's financial worth. Resideo Technologies is rated below average in price to sales category among its peers. It also is rated below average in operating margin category among its peers reporting about 0.15 of Operating Margin per Price To Sales. The ratio of Price To Sales to Operating Margin for Resideo Technologies is roughly 6.60 . As of now, Resideo Technologies' Price To Sales Ratio is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Resideo Technologies' earnings, one of the primary drivers of an investment's value.Resideo Operating Margin vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Resideo Technologies |
| = | 0.56 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Resideo Technologies |
| = | 0.08 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Resideo Operating Margin Comparison
Resideo Technologies is currently under evaluation in operating margin category among its peers.
Resideo Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Resideo Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Resideo Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Resideo Technologies' change in net profit over the period of time. It can combine multiple indicators of Resideo Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -194 M | -203.7 M | |
| Interest Income | 79.3 M | 83.3 M | |
| Operating Income | 547 M | 454.1 M | |
| Net Income From Continuing Ops | 167 M | 134.4 M | |
| Income Before Tax | 313 M | 255.8 M | |
| Total Other Income Expense Net | -234 M | -245.7 M | |
| Net Income Applicable To Common Shares | 325.4 M | 341.7 M | |
| Net Income | 210 M | 139.7 M | |
| Income Tax Expense | 103 M | 84.4 M | |
| Net Interest Income | -69 M | -65.5 M | |
| Non Operating Income Net Other | -155.2 M | -163 M | |
| Change To Netincome | 101.2 M | 52.8 M | |
| Net Income Per Share | 1.43 | 0.74 | |
| Income Quality | 2.10 | 1.24 | |
| Net Income Per E B T | 0.67 | 0.50 |
Resideo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Resideo Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Resideo Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Resideo Technologies' important profitability drivers and their relationship over time.
Use Resideo Technologies in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Resideo Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Resideo Technologies will appreciate offsetting losses from the drop in the long position's value.Resideo Technologies Pair Trading
Resideo Technologies Pair Trading Analysis
The ability to find closely correlated positions to Resideo Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Resideo Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Resideo Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Resideo Technologies to buy it.
The correlation of Resideo Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Resideo Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Resideo Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Resideo Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Resideo Technologies position
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Check out Your Equity Center. For more detail on how to invest in Resideo Stock please use our How to Invest in Resideo Technologies guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Resideo Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Resideo Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Resideo Technologies' income statement, its balance sheet, and the statement of cash flows.