NasdaqGS:ZBRA

Stock Analysis Report

Executive Summary

Zebra Technologies Corporation, together with its subsidiaries, designs, manufactures, and sells a range of automatic identification and data capture (AIDC) products in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America.

Rewards

Earnings are forecast to grow 13.8% per year

Earnings grew by 29.2% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Zebra Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZBRA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

ZBRA

-0.9%

US Electronic

0.5%

US Market


1 Year Return

20.4%

ZBRA

8.9%

US Electronic

20.3%

US Market

Return vs Industry: ZBRA exceeded the US Electronic industry which returned 8.9% over the past year.

Return vs Market: ZBRA matched the US Market which returned 20.3% over the past year.


Shareholder returns

ZBRAIndustryMarket
7 Day3.1%-0.9%0.5%
30 Day-4.7%-4.6%2.0%
90 Day-1.3%2.4%9.4%
1 Year20.4%20.4%10.0%8.9%22.8%20.3%
3 Year167.5%167.5%37.1%33.4%50.1%40.4%
5 Year162.1%162.1%69.1%60.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is Zebra Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zebra Technologies undervalued compared to its fair value and its price relative to the market?

23.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZBRA ($240.5) is trading above our estimate of fair value ($239.21)

Significantly Below Fair Value: ZBRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZBRA is poor value based on its PE Ratio (23.9x) compared to the Electronic industry average (19.8x).

PE vs Market: ZBRA is poor value based on its PE Ratio (23.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ZBRA is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ZBRA is overvalued based on its PB Ratio (7.1x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Zebra Technologies forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZBRA's forecast earnings growth (13.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ZBRA's earnings (13.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ZBRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZBRA's revenue (5.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ZBRA's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZBRA's Return on Equity is forecast to be high in 3 years time (23.8%)


Next Steps

Past Performance

How has Zebra Technologies performed over the past 5 years?

69.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZBRA has high quality earnings.

Growing Profit Margin: ZBRA's current net profit margins (12.1%) are higher than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: ZBRA's earnings have grown significantly by 69.6% per year over the past 5 years.

Accelerating Growth: ZBRA's earnings growth over the past year (29.2%) is below its 5-year average (69.6% per year).

Earnings vs Industry: ZBRA earnings growth over the past year (29.2%) exceeded the Electronic industry 14.6%.


Return on Equity

High ROE: ZBRA's Return on Equity (29.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zebra Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ZBRA's short term assets ($1.2B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: ZBRA's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ZBRA's debt to equity ratio (70.1%) is considered high.

Reducing Debt: ZBRA's debt to equity ratio has reduced from 304.1% to 70.1% over the past 5 years.

Debt Coverage: ZBRA's debt is well covered by operating cash flow (53.1%).

Interest Coverage: ZBRA's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

Inventory Level: ZBRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZBRA's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Zebra Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ZBRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ZBRA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZBRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZBRA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZBRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Anders Gustafsson (59yo)

12.4yrs

Tenure

US$9,496,092

Compensation

Mr. Anders Gustafsson has been the Chief Executive Officer of Zebra Technologies Corporation, a holding company of Navis LLC since September 4, 2007. Mr. Gustafsson serves as the Chief Executive Officer at ...


CEO Compensation Analysis

Compensation vs Market: Anders's total compensation ($USD9.50M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Anders's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anders Gustafsson
CEO & Director12.4yrsUS$9.50m0.54% $69.7m
Olivier Leonetti
Chief Financial Officer3.3yrsUS$3.09m0.037% $4.8m
Michael Terzich
Senior VP & Chief Administrative Officer5.2yrsUS$1.78m0.059% $7.6m
Joachim Heel
Senior Vice President of Global Sales5.4yrsUS$2.20m0.062% $8.1m
William Burns
Senior VP4.7yrsUS$2.60m0.038% $4.9m
Bill Cate
Vice President of Channel Strategy & Operations0yrsno datano data
Colleen O'Sullivan
VP & Chief Accounting Officer3.5yrsno data0.0070% $915.7k
Tom Bianculli
Chief Technology Officer3.4yrsno datano data
Deepak Kaul
Chief Information Officer0yrsno datano data
Michael Steele
Vice President of Investor Relations0yrsno datano data

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: ZBRA's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anders Gustafsson
CEO & Director12.4yrsUS$9.50m0.54% $69.7m
Janice Roberts
Independent Director6.3yrsUS$270.14k0.024% $3.1m
Richard Keyser
Independent Director11.7yrsUS$287.64k0.076% $9.9m
Andrew Ludwick
Independent Director11.8yrsUS$270.14k0.0028% $362.4k
Ross Manire
Independent Director16.6yrsUS$277.64k0.042% $5.4m
Michael Smith
Independent Chairman of the Board12.4yrsUS$380.14k0.059% $7.6m
Chirantan Desai
Independent Director4.2yrsUS$270.14k0.0074% $956.0k
Frank Modruson
Independent Director6yrsUS$270.14k0.030% $3.9m

11.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ZBRA's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ZBRA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Zebra Technologies Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zebra Technologies Corporation
  • Ticker: ZBRA
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$12.989b
  • Shares outstanding: 54.01m
  • Website: https://www.zebra.com

Number of Employees


Location

  • Zebra Technologies Corporation
  • 3 Overlook Point
  • Lincolnshire
  • Illinois
  • 60069
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZBRANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDAug 1991
ZT1ADB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 1991
ZBRA *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNAug 1991

Biography

Zebra Technologies Corporation, together with its subsidiaries, designs, manufactures, and sells a range of automatic identification and data capture (AIDC) products in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company operates through two segments, Asset Intelligence & Tracking and Enterprise Visibility & Mobility. It offers AIDC products, including mobile computers, barcode scanners and imagers, radio frequency identification device readers, specialty printers for barcode labeling and personal identification, and real-time location systems; related accessories and supplies, such as self-adhesive labels and other consumables; and software utilities and applications. The company also designs, integrates, markets, and sells rugged tablets. In addition, it offers a range of services, including maintenance, technical support, and repair, as well as managed and professional services, including cloud-based subscriptions. The company serves retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, government, public safety, and education enterprises. Zebra Technologies Corporation sells its products, solutions, and services through distributors, value added resellers, independent software vendors, direct marketers, and original equipment manufacturers. The company was founded in 1969 and is headquartered in Lincolnshire, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:45
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.