ZBRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. ZBRA scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZBRA. These ratings could make ZBRA a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

ZBRA's Return On Assets of 6.35% is fine compared to the rest of the industry. ZBRA outperforms 78.05% of its industry peers.
ZBRA's Return On Equity of 13.66% is amongst the best of the industry. ZBRA outperforms 80.49% of its industry peers.
With an excellent Return On Invested Capital value of 10.71%, ZBRA belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
ZBRA had an Average Return On Invested Capital over the past 3 years of 11.59%. This is above the industry average of 8.85%.

		Industry Rank	Sector Rank
ROA	6.35%
ROE	13.66%
ROIC	10.71%

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 9.74%. This is amongst the best in the industry. ZBRA outperforms 80.49% of its industry peers.
In the last couple of years the Profit Margin of ZBRA has declined.
ZBRA's Operating Margin of 15.34% is amongst the best of the industry. ZBRA outperforms 89.43% of its industry peers.
ZBRA's Operating Margin has been stable in the last couple of years.
ZBRA has a Gross Margin of 48.39%. This is amongst the best in the industry. ZBRA outperforms 83.74% of its industry peers.
ZBRA's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	15.34%
PM (TTM)	9.74%
GM	48.39%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ZBRA is still creating some value.
ZBRA has more shares outstanding than it did 1 year ago.
ZBRA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZBRA has an improved debt to assets ratio.

2.2 Solvency

ZBRA has an Altman-Z score of 3.68. This indicates that ZBRA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZBRA (3.68) is comparable to the rest of the industry.
ZBRA has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as ZBRA would need 2.74 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.74, ZBRA is doing good in the industry, outperforming 72.36% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that ZBRA is somewhat dependend on debt financing.
ZBRA has a worse Debt to Equity ratio (0.56) than 74.80% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.56
Debt/FCF	2.74
Altman-Z	3.68

ROIC/WACC1.36

WACC7.85%

2.3 Liquidity

ZBRA has a Current Ratio of 1.61. 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 (1.61) than 71.54% of its industry peers.
A Quick Ratio of 1.19 indicates that ZBRA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, ZBRA is not doing good in the industry: 70.73% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	1.19

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ZBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.24%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.88% on average over the past years.
ZBRA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.87%.
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)38.24%

EPS 3Y-9.87%

EPS 5Y0.88%

EPS Q2Q%11.17%

Revenue 1Y (TTM)12.87%

Revenue growth 3Y-3.98%

Revenue growth 5Y2.12%

Sales Q2Q%5.18%

3.2 Future

The Earnings Per Share is expected to grow by 13.92% on average over the next years. This is quite good.
ZBRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.18% yearly.

EPS Next Y18.52%

EPS Next 2Y15.05%

EPS Next 3Y13.46%

EPS Next 5Y13.92%

Revenue Next Year8.45%

Revenue Next 2Y9.09%

Revenue Next 3Y7.89%

Revenue Next 5Y7.18%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

ZBRA is valuated correctly with a Price/Earnings ratio of 15.15.
86.18% of the companies in the same industry are more expensive than ZBRA, based on the Price/Earnings ratio.
ZBRA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.14, which indicates a correct valuation of ZBRA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZBRA indicates a rather cheap valuation: ZBRA is cheaper than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ZBRA is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	15.15
Fwd PE	13.14

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ZBRA is valued a bit cheaper than 77.24% of the companies in the same industry.
88.62% of the companies in the same industry are more expensive than ZBRA, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	15.03
EV/EBITDA	13.37

4.3 Compensation for Growth

ZBRA's 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 13.46% in the coming years. This may justify a more expensive valuation.