Zebra Tech (ZBRA) AI Stock Analysis

• Market Cap: $16.13B
• Dividend Yield: N/A
• Average Volume (3M): 530.46K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 1.46
• Revenue Growth: 19.12%
• EPS Growth: 138.53%
• Country: US
• Employees: 9,900
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.61
• Shares Outstanding: 50,845,150
• 10 Day Avg. Volume: 500,579
• 30 Day Avg. Volume: 530,457
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: 17.90
• 1Y Price Target: $347.88
• Price Target Upside: 9.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: $346.00 ▲(8.62% Upside)

Zebra Tech's overall stock score reflects solid financial performance and a positive earnings call outlook, which are offset by technical indicators suggesting bearish momentum and a high valuation. The company's strategic acquisitions and guidance improvements are positive, but challenges in certain regions and sectors remain.

Positive Factors

Strategic Acquisition

The acquisition of Elo Touch Solutions is expected to enhance Zebra's market leadership and customer-facing solutions, providing $25 million in annual EBITDA synergies by year three, which could significantly boost long-term profitability and competitive positioning.

Geographic Sales Growth

Strong sales growth in North America, Asia Pacific, and Latin America indicates robust demand and effective market penetration strategies, which are crucial for sustaining long-term revenue growth and expanding the company's global footprint.

Positive Financial Guidance

Raising the full-year sales growth and EBITDA margin guidance reflects management's confidence in the company's operational execution and market conditions, suggesting potential for sustained financial performance and shareholder value creation.

Negative Factors

Declining Free Cash Flow

The decline in free cash flow growth poses a risk to future liquidity and financial flexibility, potentially impacting the company's ability to invest in growth opportunities and manage debt obligations effectively over the long term.

EMEA Sales Decline

A decline in EMEA sales highlights challenges in maintaining market share and growth in this region, which could affect overall revenue diversification and expose the company to regional economic fluctuations.

Impact of U.S. Import Tariffs

Higher U.S. import tariffs have negatively impacted gross margins, potentially leading to increased costs and reduced profitability if not mitigated, posing a challenge to maintaining competitive pricing and margins.

Zebra Tech Business Overview & Revenue Model

Company Description

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. It also provides various maintenance, technical support, repair, and managed and professional services; real-time location systems and services; and tags, sensors, exciters, middleware software, and application software; as well as physical inventory management solutions, and rugged tablets and enterprise-grade mobile computing products and accessories. In addition, the company offers barcode scanners, image capture devices, and RFID readers; and workforce management solutions, workflow execution and task management solutions, and prescriptive analytics solutions, as well as communications and collaboration solutions. It also provides services, including maintenance, technical support, repair, managed and professional services; as well as cloud-based software subscriptions and robotics automation solutions. The company serves retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries through direct sales force, and network of channel partners. The company was founded in 1969 and is headquartered in Lincolnshire, Illinois.

How the Company Makes Money

Zebra Technologies generates revenue through multiple streams, including the sale of hardware products, software solutions, and service offerings. The hardware segment, which includes barcode scanners, mobile computers, and RFID devices, constitutes a significant portion of the company's revenue. Additionally, Zebra has developed software solutions that enhance asset tracking and inventory management, providing recurring revenue through licensing and subscriptions. Service offerings, including maintenance, support, and consulting, further contribute to its income. The company also benefits from strategic partnerships with key players in various industries, facilitating the integration of its technologies into broader business ecosystems and driving sales growth.

Zebra Tech Financial Statement Overview

Summary

Zebra Tech demonstrates solid financial health with strong profitability and a balanced capital structure. The company maintains stable margins and a healthy return on equity. However, the declining free cash flow and slight pressure on operational margins highlight areas for improvement.

Income Statement

Zebra Tech's income statement shows a strong gross profit margin of approximately 48.6% TTM, indicating efficient cost management. The net profit margin is stable at around 10.6% TTM, reflecting consistent profitability. Revenue growth is modest at 1.6% TTM, suggesting steady but slow expansion. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.64 TTM, indicating a balanced approach to leveraging. Return on equity is healthy at 15.4% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 45.6%, suggesting a solid equity base relative to total assets. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Zebra Tech's cash flow statement shows a decline in free cash flow growth of -14.8% TTM, which is a concern for future liquidity. The operating cash flow to net income ratio is 0.58 TTM, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.92 TTM, reflecting good cash conversion. However, the negative growth in free cash flow suggests potential challenges in sustaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.19B	4.98B	4.58B	5.78B	5.63B	4.45B
Gross Profit	2.52B	2.41B	2.12B	2.62B	2.63B	2.00B
EBITDA	969.00M	936.00M	761.00M	1.14B	1.17B	736.00M
Net Income	548.00M	528.00M	296.00M	463.00M	837.00M	504.00M
Balance Sheet
Total Assets	7.94B	7.97B	7.31B	7.53B	6.21B	5.38B
Cash, Cash Equivalents and Short-Term Investments	872.00M	901.00M	137.00M	105.00M	332.00M	168.00M
Total Debt	2.32B	2.36B	2.41B	2.20B	1.15B	1.40B
Total Liabilities	4.32B	4.38B	4.27B	4.80B	3.23B	3.23B
Stockholders Equity	3.62B	3.59B	3.04B	2.73B	2.98B	2.14B
Cash Flow
Free Cash Flow	853.00M	954.00M	-91.00M	413.00M	1.01B	895.00M
Operating Cash Flow	925.00M	1.01B	-4.00M	488.00M	1.07B	962.00M
Investing Cash Flow	-131.00M	-57.00M	-92.00M	-968.00M	-546.00M	-641.00M
Financing Cash Flow	-332.00M	-190.00M	117.00M	253.00M	-371.00M	-157.00M

Zebra Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 318.54
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBRA, the sentiment is Positive. The current price of 318.54 is above the 20-day moving average (MA) of 316.01, below the 50-day MA of 321.18, and below the 200-day MA of 320.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBRA.

Zebra Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPE	77 Outperform	32.97B	31.88	5.11%	2.08%	14.39%	-38.96%
MSI	75 Outperform	79.34B	38.19	107.52%	0.92%	6.45%	44.24%
ZBRA	69 Neutral	$16.13B	30.51	15.87%	―	19.12%	138.53%
ERIC	69 Neutral	27.18B	16.10	20.02%	3.38%	0.98%	0.00%
PI	68 Neutral	5.57B	26,611.11	0.34%	―	13.96%	-96.21%
NOK	62 Neutral	25.38B	24.44	6.18%	3.27%	-2.39%	157.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%