ZEBRA TECHNOLOGIES CORP-CL A (ZBRA) Stock Fundamental Analysis
NASDAQ:ZBRA - Nasdaq - US9892071054 - Common Stock - Currency: USD
Overall ZBRA gets a fundamental rating of 6 out of 10. We evaluated ZBRA against 123 industry peers in the Electronic Equipment, Instruments & Components industry. While ZBRA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ZBRA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ZBRA was profitable.
In the past year ZBRA had a positive cash flow from operations.
Each year in the past 5 years ZBRA has been profitable.
ZBRA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ZBRA's Return On Assets of 6.63% is amongst the best of the industry. ZBRA outperforms 82.11% of its industry peers.
ZBRA has a better Return On Equity (14.72%) than 83.74% of its industry peers.
ZBRA's Return On Invested Capital of 10.49% is amongst the best of the industry. ZBRA outperforms 84.55% of its industry peers.
ZBRA had an Average Return On Invested Capital over the past 3 years of 11.59%. This is above the industry average of 8.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 14.72% | ||
| ROIC | 10.49% |
ROA(3y)5.61%
ROA(5y)7.93%
ROE(3y)13.8%
ROE(5y)18.59%
ROIC(3y)11.59%
ROIC(5y)14.22%
1.3 Margins
ZBRA has a Profit Margin of 10.60%. This is amongst the best in the industry. ZBRA outperforms 83.74% of its industry peers.
In the last couple of years the Profit Margin of ZBRA has declined.
With an excellent Operating Margin value of 15.36%, ZBRA belongs to the best of the industry, outperforming 91.87% of the companies in the same industry.
In the last couple of years the Operating Margin of ZBRA has remained more or less at the same level.
ZBRA has a better Gross Margin (48.44%) than 84.55% of its industry peers.
In the last couple of years the Gross Margin of ZBRA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.36% | ||
| PM (TTM) | 10.6% | ||
| GM | 48.44% |
OM growth 3Y-5.09%
OM growth 5Y-0.99%
PM growth 3Y-10.68%
PM growth 5Y-2.66%
GM growth 3Y1.23%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
ZBRA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ZBRA has more shares outstanding
Compared to 5 years ago, ZBRA has less shares outstanding
Compared to 1 year ago, ZBRA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.97 indicates that ZBRA is not in any danger for bankruptcy at the moment.
ZBRA has a better Altman-Z score (3.97) than 70.73% of its industry peers.
ZBRA has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as ZBRA would need 2.28 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.28, ZBRA is doing good in the industry, outperforming 73.98% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that ZBRA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, ZBRA is doing worse than 77.24% of the companies in the same industry.
Although ZBRA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.27
WACC8.27%
2.3 Liquidity
ZBRA has a Current Ratio of 1.43. This is a normal value and indicates that ZBRA is financially healthy and should not expect problems in meeting its short term obligations.
ZBRA has a Current ratio of 1.43. This is in the lower half of the industry: ZBRA underperforms 78.05% of its industry peers.
A Quick Ratio of 1.03 indicates that ZBRA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, ZBRA is doing worse than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
ZBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.72%, which is quite impressive.
ZBRA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.88% yearly.
The Revenue has grown by 8.66% in the past year. This is quite good.
Measured over the past years, ZBRA shows a small growth in Revenue. The Revenue has been growing by 2.12% on average per year.
EPS 1Y (TTM)37.72%
EPS 3Y-9.87%
EPS 5Y0.88%
EPS Q2Q%133.92%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y-3.98%
Revenue growth 5Y2.12%
Sales Q2Q%32.21%
3.2 Future
ZBRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.16% yearly.
ZBRA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.98% yearly.
EPS Next Y16.04%
EPS Next 2Y13.82%
EPS Next 3Y12.15%
EPS Next 5Y19.16%
Revenue Next Year6.18%
Revenue Next 2Y6.12%
Revenue Next 3Y5.98%
Revenue Next 5Y11.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.66, which indicates a rather expensive current valuation of ZBRA.
ZBRA's Price/Earnings ratio is a bit cheaper when compared to the industry. ZBRA is cheaper than 69.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of ZBRA to the average of the S&P500 Index (29.35), we can say ZBRA is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.67 indicates a rather expensive valuation of ZBRA.
69.11% of the companies in the same industry are more expensive than ZBRA, based on the Price/Forward Earnings ratio.
ZBRA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 18.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZBRA.
ZBRA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZBRA is cheaper than 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.76 | ||
| EV/EBITDA | 17.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZBRA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ZBRA's earnings are expected to grow with 12.15% in the coming years.
PEG (NY)1.35
PEG (5Y)24.58
EPS Next 2Y13.82%
EPS Next 3Y12.15%
5. Dividend
5.1 Amount
ZBRA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
292.69
-1.87 (-0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners92.29%
Inst Owner Change1.56%
Ins Owners0.71%
Ins Owner Change3.14%
Market Cap15.04B
Analysts76
Price Target401.12 (37.05%)
Short Float %1.72%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.58%
Min EPS beat(2)-0.59%
Max EPS beat(2)5.75%
EPS beat(4)3
Avg EPS beat(4)7.52%
Min EPS beat(4)-0.59%
Max EPS beat(4)13.76%
EPS beat(8)5
Avg EPS beat(8)4.12%
EPS beat(12)8
Avg EPS beat(12)2.71%
EPS beat(16)12
Avg EPS beat(16)3.81%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)1.13%
Revenue beat(4)3
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-0.67%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)-1.05%
Revenue beat(12)6
Avg Revenue beat(12)-1.15%
Revenue beat(16)8
Avg Revenue beat(16)-0.96%
PT rev (1m)-5.57%
PT rev (3m)-3.84%
EPS NQ rev (1m)1.64%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-3.31%
EPS NY rev (3m)-3.49%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)-1.83%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 18.67 | ||
| P/S | 3.02 | ||
| P/FCF | 15.76 | ||
| P/OCF | 14.85 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.4 |
EPS(TTM)13.51
EY4.62%
EPS(NY)15.68
Fwd EY5.36%
FCF(TTM)18.57
FCFY6.34%
OCF(TTM)19.72
OCFY6.74%
SpS96.94
BVpS69.79
TBVpS-14.15
PEG (NY)1.35
PEG (5Y)24.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.63% | ||
| ROE | 14.72% | ||
| ROCE | 12.21% | ||
| ROIC | 10.49% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 62.57% | ||
| OM | 15.36% | ||
| PM (TTM) | 10.6% | ||
| GM | 48.44% | ||
| FCFM | 19.15% |
ROA(3y)5.61%
ROA(5y)7.93%
ROE(3y)13.8%
ROE(5y)18.59%
ROIC(3y)11.59%
ROIC(5y)14.22%
ROICexc(3y)12.35%
ROICexc(5y)15.17%
ROICexgc(3y)83.03%
ROICexgc(5y)N/A
ROCE(3y)13.49%
ROCE(5y)16.56%
ROICexcg growth 3Y-36.88%
ROICexcg growth 5Y-17.49%
ROICexc growth 3Y-16.79%
ROICexc growth 5Y-8.38%
OM growth 3Y-5.09%
OM growth 5Y-0.99%
PM growth 3Y-10.68%
PM growth 5Y-2.66%
GM growth 3Y1.23%
GM growth 5Y0.68%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.28 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 34.3% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 13.91 | ||
| Cash Conversion | 108.11% | ||
| Profit Quality | 180.68% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.97 |
F-Score8
WACC8.27%
ROIC/WACC1.27
Cap/Depr(3y)40.17%
Cap/Depr(5y)39.59%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.72%
EPS 3Y-9.87%
EPS 5Y0.88%
EPS Q2Q%133.92%
EPS Next Y16.04%
EPS Next 2Y13.82%
EPS Next 3Y12.15%
EPS Next 5Y19.16%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y-3.98%
Revenue growth 5Y2.12%
Sales Q2Q%32.21%
Revenue Next Year6.18%
Revenue Next 2Y6.12%
Revenue Next 3Y5.98%
Revenue Next 5Y11.98%
EBIT growth 1Y30.77%
EBIT growth 3Y-8.88%
EBIT growth 5Y1.11%
EBIT Next Year27.29%
EBIT Next 3Y15.85%
EBIT Next 5Y18.32%
FCF growth 1Y1148.35%
FCF growth 3Y-1.88%
FCF growth 5Y8.86%
OCF growth 1Y25425%
OCF growth 3Y-1.78%
OCF growth 5Y8.14%