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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Resideo Technologies's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.15%.
Resideo Technologies (STU:3RT) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Resideo Technologies (STU:3RT) has a ROCE % of 6.15% as of Mar. 2026.
Is Resideo Technologies' ROCE % too high?
Resideo Technologies' current ROCE % is 6.15%. The Industrial Distribution industry median ROCE % is 9.51. Resideo Technologies' value of 6.15% is 35.3% below this industry median. Overall, Resideo Technologies has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Resideo Technologies' ROCE % compare to SITE and XMTR?
Resideo Technologies' ROCE % of 6.15% can be compared against companies in the Industrial Distribution industry. The industry median ROCE % is 9.51. Resideo Technologies' value of 6.15% is 35.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Distribution company?
The median ROCE % among Industrial Distribution companies is 9.51, based on 158 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Resideo Technologies's current ROCE % of 6.15% is 35.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Distribution industry, the median ROCE % is 9.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Resideo Technologies's current ROCE % is 6.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resideo Technologies stock overvalued right now?
Based on GuruFocus' analysis, Resideo Technologies (STU:3RT) is currently considered Significantly Overvalued. The stock's GF Value™ is €21.44, compared to a current price of €30.00 — trading 39.9% above its estimated fair value. The current ROCE % is 6.15% and 35.3% below the Industrial Distribution industry median of 9.51. Resideo Technologies' overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Resideo Technologies (STU:3RT), the current ROCE % is 6.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Resideo Technologies (STU:3RT) Overvalued in 2026?
Based on GuruFocus' analysis, Resideo Technologies stock appears to be overvalued.
The current stock price of €30.00 is trading 39.9% above its estimated GF Value™ of €21.44.
GuruFocus considers Resideo Technologies to be Significantly Overvalued.
Key valuation signals for STU:3RT:
ROCE %: 6.15%
GF Value™: €21.44 vs. price of €30.00 (39.9% above fair value)
Industry Position: 35.3% below the Industrial Distribution median
No single metric tells the full story. See the STU:3RT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resideo Technologies Inc is a manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions. The company has two reportable segments; Products and Solutions segment offers temperature and humidity control, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions; and ADI Global Distribution segment includes wholesale distributor of low-voltage security products including access control, fire detection, security, and video products. It derives majority of its revenue from the United States.
72GF Score
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