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ZBRA

Zebra Technologies NasdaqGS:ZBRA Stock Report

Last Price

US$271.35

Market Cap

US$14.1b

7D

-4.8%

1Y

-48.4%

Updated

28 Sep, 2022

Data

Company Financials +
ZBRA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends0/6

ZBRA Stock Overview

Zebra Technologies Corporation, together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide.

Zebra Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zebra Technologies
Historical stock prices
Current Share PriceUS$271.35
52 Week HighUS$615.00
52 Week LowUS$262.84
Beta1.68
1 Month Change-11.87%
3 Month Change-7.69%
1 Year Change-48.38%
3 Year Change36.01%
5 Year Change143.58%
Change since IPO6,590.82%

Recent News & Updates

Aug 24
Is Now The Time To Look At Buying Zebra Technologies Corporation (NASDAQ:ZBRA)?

Is Now The Time To Look At Buying Zebra Technologies Corporation (NASDAQ:ZBRA)?

Today we're going to take a look at the well-established Zebra Technologies Corporation ( NASDAQ:ZBRA ). The company's...

Aug 10

Zebra Technologies: An Interesting Prospect At An Affordable Price

Zebra Technologies has proven itself over the past several years, with revenue and profitability generally looking promising. While profitability has been hit this year, much of that pain comes from one-time events. ZBRA shares are quite affordable right now, especially compared to similar firms. Whether you like it or not, the future will be very much focused on data. At the end of the day, data is incredibly valuable because of what it tells us and the decisions we can make from it. It stands to reason, then, that there would eventually develop a large number of companies dedicated to working with data in some way, shape, or form. One interesting prospect in this space there has been growing at a nice clip in recent years is Zebra Technologies Corporation (ZBRA). The company has its hands in a variety of niche markets, with all of its operations centered around two operating segments. Unlike many other data-oriented firms, however, Zebra Technologies captures most of its revenue not from providing data services, but instead from producing physical products that use, analyze, and manipulate data. Long term, the company is likely to do quite well for itself. In addition, shares of the business, while not exactly cheap, do look reasonably priced and they are especially cheap compared to similar firms. Overall, the company likely does offer decent upside potential for long-term investors. And as such, I have decided to rate the enterprise a soft 'buy' for now, reflecting my belief that it will probably outperform the market, if only slightly, for the foreseeable future. Zebra Technologies - Data is everything To best understand Zebra Technologies, investors would be wise to break the company's operations down into its two operating segments. The first of these is its Asset Intelligence & Tracking segment. This unit is responsible for a variety of functions. One example falls under the barcode and card printing category. Through this, the company produces printers that, in turn, produce high-quality labels, wristbands, tickets, receipts, and plastic cards on demand. These printers are used for a wide variety of activities, such as routing and tracking, patient safety, transaction processing, personal identification, product authentication, and more. According to management, they use thermal printing technology in their printers that results in the creation of images by heating certain pixels of an electrical print head to produce an image of a ribbon or heat-sensitive substrate. They also provide dye-sublimination thermal card printers under this unit. Other supplies the company produces include customized thermal labels, receipts, ribbons, plastic cards, and even RFID tags that can be used with their printers. The company also generates revenue from providing services associated with these products, and other activities. It's worth noting that this is the smaller of the two segments. Last year, it accounted for just 29.9% of the company's revenue and 33% of its profits. Next in line, we have the Enterprise Visibility & Mobility segment. Under this umbrella, the company has a few different product categories. The first of these is the mobile computing category. Through this, the company sells enterprise-grade mobile computing products and accessories that have a variety of use cases. These can be used in industrial applications for things like inventory management in warehouses and distribution centers, field service, post and parcel tracking, and more. Its mobile computing products largely focus on the Android operating system, and they often incorporate barcode scanning, GPS, and RFID features within them. Another product category is referred to as data capture, RFID, fixed industrial scanning, and machine vision. Through this, the company sells barcode scanners, RFID readers, industrial machine vision cameras, and fixed industrial scanners. Through this segment, the company also provides various services associated with these products, plus it provides workflow optimization solutions centered around software, robotic automation, and more. Last year, this segment accounted for 70.1% of the company's revenue and 67% of its profits. Author - SEC EDGAR Data Over the past few years, the management team at Zebra Technologies has done a really good job growing the company. Revenue increased from $3.72 billion in 2017 to $5.63 billion in 2021. This increase in sales has been driven by a number of factors, including organic growth. In fact, organic growth has been the single largest source of expansion recently. In 2021, for instance, sales were 26.5% higher than what they were just one year earlier. Management said that overall organic net sales increased by 23.2% that year. The rest of the increase, meanwhile, was associated with favorable currency changes and acquisitions. On the bottom line, the picture for the company has also improved over the years. Net income has increased from $17 million in 2017 to $837 million last year. Of course, we should also pay attention to other profitability metrics as well. Consider operating cash flow which, between 2017 and 2021, ballooned from $478 million to $1.07 billion. Over that same window of time, EBITDA for the company expanded from $651 million to just under $1.20 billion. Author - SEC EDGAR Data Naturally, we should also be paying attention to what's taking place in the current fiscal year. For the first half of the year, revenue came in at $2.90 billion. That represents an increase of 6.5% over the $2.72 billion generated in the first half of 2021. Although revenue increased, the company has experienced some issues regarding profitability. Net income, for instance, dropped from $447 million to $107 million. The company did suffer some from a decline in its gross margin, a figure that declined from 48.2% of revenue in the first half of 2021 to 45.2% the same time this year. The bigger problem, however, it was a 56.7% increase in operating expenses. The single largest contributor on this front was a $372 million charge associated with certain patent-related litigations. Because of the nature of this and the fact that both it and its counterparty agreed to a mutual general release from all past claims asserted by both parties, investors should view this as a one-time thing. Naturally, this impacted other profitability metrics as well. Operating cash flow fell from $539 million to $154 million, while EBITDA declined slightly from $612 million to $562 million.

Shareholder Returns

ZBRAUS ElectronicUS Market
7D-4.8%-2.7%-2.0%
1Y-48.4%-21.3%-20.3%

Return vs Industry: ZBRA underperformed the US Electronic industry which returned -23.7% over the past year.

Return vs Market: ZBRA underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is ZBRA's price volatile compared to industry and market?
ZBRA volatility
ZBRA Average Weekly Movement6.2%
Electronic Industry Average Movement6.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: ZBRA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ZBRA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19699,800Anders Gustafssonhttps://www.zebra.com

Zebra Technologies Corporation, together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It operates in two segments, Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The company designs, manufactures, and sells printers, which produce labels, wristbands, tickets, receipts, and plastic cards; dye-sublimination thermal card printers, which produce images which are used for personal identification, access control, and financial transactions; RFID printers that encode data into passive RFID transponders; accessories and options for our printers, including vehicle mounts and battery chargers; stock and customized thermal labels, receipts, ribbons, plastic cards, and RFID tags for printers; and temperature-monitoring labels primarily used in vaccine distribution.

Zebra Technologies Fundamentals Summary

How do Zebra Technologies's earnings and revenue compare to its market cap?
ZBRA fundamental statistics
Market CapUS$14.10b
Earnings (TTM)US$497.00m
Revenue (TTM)US$5.80b

28.4x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZBRA income statement (TTM)
RevenueUS$5.80b
Cost of RevenueUS$3.18b
Gross ProfitUS$2.63b
Other ExpensesUS$2.13b
EarningsUS$497.00m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)9.57
Gross Margin45.25%
Net Profit Margin8.56%
Debt/Equity Ratio86.0%

How did ZBRA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ZBRA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZBRA?

Other financial metrics that can be useful for relative valuation.

ZBRA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.8x
Enterprise Value/EBITDA14.2x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does ZBRA's PE Ratio compare to its peers?

ZBRA PE Ratio vs Peers
The above table shows the PE ratio for ZBRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.6x
TRMB Trimble
27.2x1.4%US$14.1b
TDY Teledyne Technologies
24.1x7.4%US$16.4b
CGNX Cognex
29.2x20.9%US$7.5b
KEYS Keysight Technologies
25.8x9.4%US$28.5b
ZBRA Zebra Technologies
28.4x26.2%US$14.1b

Price-To-Earnings vs Peers: ZBRA is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the peer average (26.6x).


Price to Earnings Ratio vs Industry

How does ZBRA's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: ZBRA is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the US Electronic industry average (14.4x)


Price to Earnings Ratio vs Fair Ratio

What is ZBRA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZBRA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.4x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: ZBRA is good value based on its Price-To-Earnings Ratio (28.4x) compared to the estimated Fair Price-To-Earnings Ratio (29.8x).


Share Price vs Fair Value

What is the Fair Price of ZBRA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZBRA ($271.35) is trading below our estimate of fair value ($659.99)

Significantly Below Fair Value: ZBRA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Zebra Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZBRA's forecast earnings growth (26.2% per year) is above the savings rate (1.9%).

Earnings vs Market: ZBRA's earnings (26.2% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: ZBRA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZBRA's revenue (5.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ZBRA's revenue (5.9% 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 (30.9%)


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Past Performance

How has Zebra Technologies performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


34.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZBRA has a large one-off loss of $416.0M impacting its July 2 2022 financial results.

Growing Profit Margin: ZBRA's current net profit margins (8.6%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: ZBRA has become profitable over the past 5 years, growing earnings by 34.4% per year.

Accelerating Growth: ZBRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZBRA had negative earnings growth (-34.7%) over the past year, making it difficult to compare to the Electronic industry average (20.1%).


Return on Equity

High ROE: ZBRA's Return on Equity (19.8%) is considered low.


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Financial Health

How is Zebra Technologies's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZBRA's short term assets ($1.8B) do not cover its short term liabilities ($2.1B).

Long Term Liabilities: ZBRA's short term assets ($1.8B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: ZBRA's net debt to equity ratio (82.1%) is considered high.

Reducing Debt: ZBRA's debt to equity ratio has reduced from 301% to 86% over the past 5 years.

Debt Coverage: ZBRA's debt is well covered by operating cash flow (31.7%).

Interest Coverage: ZBRA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Zebra Technologies Dividend Yield vs Market
How does Zebra Technologies dividend yield compare to the market?
SegmentDividend Yield
Company (Zebra Technologies)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Electronic)1.7%
Analyst forecast in 3 Years (Zebra Technologies)0%

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ZBRA has not reported any payouts.


Discover strong dividend paying companies

Management

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

6.3yrs

Average management tenure


CEO

Anders Gustafsson (62 yo)

15yrs

Tenure

US$13,589,616

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

Anders Gustafsson's Compensation vs Zebra Technologies Earnings
How has Anders Gustafsson's remuneration changed compared to Zebra Technologies's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 02 2022n/an/a

US$497m

Apr 02 2022n/an/a

US$814m

Dec 31 2021US$14mUS$1m

US$837m

Oct 02 2021n/an/a

US$845m

Jul 03 2021n/an/a

US$762m

Apr 03 2021n/an/a

US$643m

Dec 31 2020US$10mUS$1m

US$504m

Sep 26 2020n/an/a

US$474m

Jun 27 2020n/an/a

US$494m

Mar 28 2020n/an/a

US$518m

Dec 31 2019US$10mUS$1m

US$544m

Sep 28 2019n/an/a

US$490m

Jun 29 2019n/an/a

US$481m

Mar 30 2019n/an/a

US$427m

Dec 31 2018US$9mUS$988k

US$421m

Sep 29 2018n/an/a

US$310m

Jun 30 2018n/an/a

US$171m

Mar 31 2018n/an/a

US$118m

Dec 31 2017US$8mUS$938k

US$17m

Sep 30 2017n/an/a

US$30m

Jul 01 2017n/an/a

-US$41m

Apr 01 2017n/an/a

-US$103m

Dec 31 2016US$6mUS$900k

-US$137m

Oct 01 2016n/an/a

-US$181m

Jul 02 2016n/an/a

-US$127m

Apr 02 2016n/an/a

-US$159m

Dec 31 2015US$6mUS$889k

-US$158m

Compensation vs Market: Anders's total compensation ($USD13.59M) is about average for companies of similar size in the US market ($USD13.05M).

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


Leadership Team

Experienced Management: ZBRA's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: ZBRA's board of directors are considered experienced (8.9 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

NasdaqGS:ZBRA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
04 Aug 22SellUS$740,763Stephen WilliamsIndividual2,255US$328.75
15 Dec 21SellUS$1,053,521Janice RobertsIndividual1,802US$584.64
13 Dec 21SellUS$1,210,880Frank ModrusonIndividual2,000US$605.44
07 Dec 21SellUS$550,623Stephen WilliamsIndividual910US$605.08
02 Dec 21SellUS$471,584Michael ChoIndividual802US$588.01
19 Nov 21SellUS$8,453,060Anders GustafssonIndividual14,000US$603.87
18 Nov 21SellUS$2,119,280Michael SmithIndividual3,500US$607.00
10 Nov 21SellUS$44,980Stephen WilliamsIndividual76US$591.84

Ownership Breakdown

What is the ownership structure of ZBRA?
Owner TypeNumber of SharesOwnership Percentage
State or Government22,1380.04%
Individual Insiders262,9580.5%
General Public6,192,20011.9%
Institutions45,477,69887.5%

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


Top Shareholders

Top 25 shareholders own 55.99% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.39%
The Vanguard Group, Inc.
5,917,608$1.6b-0.31%0.04%
8.85%
BlackRock, Inc.
4,599,004$1.2b-19.17%0.03%
4.43%
AllianceBernstein L.P.
2,302,020$624.7m45.29%0.25%
4.03%
State Street Global Advisors, Inc.
2,094,573$568.4m-3.59%0.03%
3.15%
Stichting Pensioenfonds ABP
1,637,674$444.4m0.3%0.62%
2.88%
Kayne Anderson Rudnick Investment Management, LLC
1,495,092$405.7m8.48%1.18%
2.04%
Geode Capital Management, LLC
1,061,431$288.0m1.3%0.04%
1.88%
Pictet Asset Management Limited
976,714$265.0m-7.21%0.23%
1.83%
Neuberger Berman Investment Advisers LLC
949,669$257.7m-4.07%0.25%
1.51%
J.P. Morgan Asset Management, Inc.
787,036$213.6m-8.4%0.04%
1.45%
BNY Mellon Asset Management
752,504$204.2m2.95%0.05%
1.44%
Columbia Management Investment Advisers, LLC
750,683$203.7m15.76%0.06%
1.28%
Nordea Investment Management AB
665,216$180.5m15.26%0.16%
1.1%
Northern Trust Global Investments
573,578$155.6m-4.4%0.03%
0.95%
Massachusetts Financial Services Company
495,165$134.4m2.66%0.03%
0.89%
NewSouth Capital Management, Inc.
464,614$126.1m-1.62%6.04%
0.86%
Norges Bank Investment Management
448,468$121.7m0%0.02%
0.85%
Legal & General Investment Management Limited
442,228$120.0m-5.63%0.04%
0.79%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
409,776$111.2m5.9%0.04%
0.79%
Nikko Asset Management Co., Ltd.
409,687$111.2m4.68%0.05%
0.77%
Franklin Resources, Inc.
400,551$108.7m-21.74%0.05%
0.76%
Wells Fargo & Company, Securities and Brokerage Investments
395,156$107.2m-3.88%0.05%
0.69%
Ariel Investments, LLC
358,716$97.3m285.28%0.92%
0.68%
Invesco Capital Management LLC
351,312$95.3m10.07%0.07%
0.68%
Eaton Vance Management
350,740$95.2m10.93%0.04%

Company Information

Zebra Technologies Corporation's 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
  • Implied Market Cap: US$14.098b
  • Shares outstanding: 51.95m
  • 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
ZT1AXTRA (XETRA Trading Platform)YesClass A Common StockDEEURAug 1991
ZBRA *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNAug 1991
Z1BR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 30 REPR 1 COM NPVBRBRLOct 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/07/02
Annual Earnings2021/12/31


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.