ZEBRA TECHNOLOGIES CORP-CL A (ZBRA)
US9892071054 - Common Stock
We assign a fundamental rating of 5 out of 10 to ZBRA. ZBRA was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While ZBRA has a great profitability rating, there are some minor concerns on its financial health. ZBRA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ZBRA had positive earnings in the past year.
In the past year ZBRA had a positive cash flow from operations.
ZBRA had positive earnings in each of the past 5 years.
ZBRA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ZBRA (4.97%) is better than 74.80% of its industry peers.
Looking at the Return On Equity, with a value of 11.17%, ZBRA is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
ZBRA's Return On Invested Capital of 8.92% is fine compared to the rest of the industry. ZBRA outperforms 78.86% of its industry peers.
ZBRA had an Average Return On Invested Capital over the past 3 years of 14.81%. This is significantly above the industry average of 8.68%.
The 3 year average ROIC (14.81%) for ZBRA is well above the current ROIC(8.92%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 11.17% | ||
| ROIC | 8.92% |
ROA(3y)7.89%
ROA(5y)8.92%
ROE(3y)18.25%
ROE(5y)21.57%
ROIC(3y)14.81%
ROIC(5y)16.07%
1.3 Margins
Looking at the Profit Margin, with a value of 8.20%, ZBRA is in the better half of the industry, outperforming 78.86% of the companies in the same industry.
ZBRA's Profit Margin has declined in the last couple of years.
ZBRA's Operating Margin of 13.51% is amongst the best of the industry. ZBRA outperforms 88.62% of its industry peers.
ZBRA's Operating Margin has declined in the last couple of years.
The Gross Margin of ZBRA (47.53%) is better than 81.30% of its industry peers.
ZBRA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.51% | ||
| PM (TTM) | 8.2% | ||
| GM | 47.53% |
OM growth 3Y-6.07%
OM growth 5Y-3.07%
PM growth 3Y-17.09%
PM growth 5Y-8.34%
GM growth 3Y0.94%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZBRA is creating some value.
The number of shares outstanding for ZBRA has been reduced compared to 1 year ago.
ZBRA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZBRA has a worse debt to assets ratio.
2.2 Solvency
ZBRA has an Altman-Z score of 4.66. This indicates that ZBRA is financially healthy and has little risk of bankruptcy at the moment.
ZBRA's Altman-Z score of 4.66 is fine compared to the rest of the industry. ZBRA outperforms 72.36% of its industry peers.
The Debt to FCF ratio of ZBRA is 2.82, which is a good value as it means it would take ZBRA, 2.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.82, ZBRA is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that ZBRA is somewhat dependend on debt financing.
ZBRA has a worse Debt to Equity ratio (0.61) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 4.66 |
ROIC/WACC0.89
WACC10.01%
2.3 Liquidity
ZBRA has a Current Ratio of 1.37. 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 worse Current ratio (1.37) than 85.37% of its industry peers.
ZBRA has a Quick Ratio of 1.37. This is a bad value and indicates that ZBRA is not financially healthy enough and could expect problems in meeting its short term obligations.
ZBRA has a Quick ratio of 0.96. This is amonst the worse of the industry: ZBRA underperforms 84.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
ZBRA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.68%.
The Earnings Per Share has been decreasing by -2.30% on average over the past years.
The Revenue has decreased by -8.31% in the past year.
ZBRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.68% yearly.
EPS 1Y (TTM)-12.68%
EPS 3Y-8.51%
EPS 5Y-2.3%
EPS Q2Q%301.15%
Revenue 1Y (TTM)-8.31%
Revenue growth 3Y1.01%
Revenue growth 5Y1.68%
Sales Q2Q%31.28%
3.2 Future
Based on estimates for the next years, ZBRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.47% on average per year.
Based on estimates for the next years, ZBRA will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y40.02%
EPS Next 2Y29.14%
EPS Next 3Y23.36%
EPS Next 5Y17.47%
Revenue Next Year8.55%
Revenue Next 2Y8.26%
Revenue Next 3Y7.56%
Revenue Next 5Y6.07%
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
With a Price/Earnings ratio of 35.40, ZBRA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ZBRA.
When comparing the Price/Earnings ratio of ZBRA to the average of the S&P500 Index (29.20), we can say ZBRA is valued slightly more expensively.
With a Price/Forward Earnings ratio of 24.28, ZBRA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZBRA is on the same level as its industry peers.
ZBRA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 24.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZBRA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ZBRA is valued a bit cheaper than the industry average as 67.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.68 | ||
| EV/EBITDA | 27.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ZBRA has a very decent profitability rating, which may justify a higher PE ratio.
ZBRA's earnings are expected to grow with 23.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y29.14%
EPS Next 3Y23.36%
5. Dividend
5.1 Amount
ZBRA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZEBRA TECHNOLOGIES CORP-CL A
NASDAQ:ZBRA (11/22/2024, 6:05:05 PM)
After market: 397.19 0 (0%)397.19
+4.88 (+1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 24.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 11.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.51% | ||
| PM (TTM) | 8.2% | ||
| GM | 47.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-12.68%
EPS 3Y-8.51%
EPS 5Y
EPS Q2Q%
EPS Next Y40.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.31%
Revenue growth 3Y1.01%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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