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 124 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
ZBRA had positive earnings in the past year.
ZBRA had a positive operating cash flow in the past year.
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
The Return On Assets of ZBRA (6.95%) is better than 83.87% of its industry peers.
Looking at the Return On Equity, with a value of 15.14%, ZBRA belongs to the top of the industry, outperforming 83.06% of the companies in the same industry.
The Return On Invested Capital of ZBRA (10.78%) is better than 85.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZBRA is above the industry average of 9.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 15.14% | ||
| ROIC | 10.78% |
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
With an excellent Profit Margin value of 10.74%, ZBRA belongs to the best of the industry, outperforming 84.68% of the companies in the same industry.
ZBRA's Profit Margin has declined in the last couple of years.
ZBRA has a Operating Margin of 15.51%. This is amongst the best in the industry. ZBRA outperforms 89.52% of its industry peers.
In the last couple of years the Operating Margin of ZBRA has remained more or less at the same level.
ZBRA has a Gross Margin of 48.79%. This is amongst the best in the industry. ZBRA outperforms 84.68% of its industry peers.
ZBRA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.51% | ||
| PM (TTM) | 10.74% | ||
| GM | 48.79% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZBRA is creating some value.
ZBRA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ZBRA has been reduced compared to 5 years ago.
ZBRA has a better debt/assets ratio than last year.
2.2 Solvency
ZBRA has an Altman-Z score of 4.17. This indicates that ZBRA is financially healthy and has little risk of bankruptcy at the moment.
ZBRA's Altman-Z score of 4.17 is fine compared to the rest of the industry. ZBRA outperforms 66.94% of its industry peers.
ZBRA has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as ZBRA would need 2.17 years to pay back of all of its debts.
ZBRA has a Debt to FCF ratio of 2.17. This is in the better half of the industry: ZBRA outperforms 76.61% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that ZBRA is somewhat dependend on debt financing.
ZBRA's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. ZBRA is outperformed by 75.00% of its industry peers.
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 | 2.17 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.19
WACC9.08%
2.3 Liquidity
ZBRA has a Current Ratio of 1.45. 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 1.45. This is in the lower half of the industry: ZBRA underperforms 74.19% of its industry peers.
A Quick Ratio of 1.02 indicates that ZBRA should not have too much problems paying its short term obligations.
ZBRA has a Quick ratio of 1.02. This is in the lower half of the industry: ZBRA underperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
ZBRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.81%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.88% on average over the past years.
Looking at the last year, ZBRA shows a quite strong growth in Revenue. The Revenue has grown by 8.66% in the last year.
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)75.81%
EPS 3Y-9.87%
EPS 5Y0.88%
EPS Q2Q%13.52%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y-3.98%
Revenue growth 5Y2.12%
Sales Q2Q%6.24%
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 13.52% yearly.
ZBRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.94% yearly.
EPS Next Y8.78%
EPS Next 2Y11.29%
EPS Next 3Y10.97%
EPS Next 5Y13.52%
Revenue Next Year5.96%
Revenue Next 2Y6.06%
Revenue Next 3Y5.73%
Revenue Next 5Y5.94%
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 20.90, ZBRA is valued on the expensive side.
75.81% of the companies in the same industry are more expensive than ZBRA, based on the Price/Earnings ratio.
ZBRA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 18.89, the valuation of ZBRA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ZBRA is valued a bit cheaper than 73.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZBRA to the average of the S&P500 Index (35.28), we can say ZBRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZBRA indicates a somewhat cheap valuation: ZBRA is cheaper than 64.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ZBRA is valued cheaper than 87.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.05 | ||
| EV/EBITDA | 17.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZBRA does not grow enough to justify the current Price/Earnings ratio.
ZBRA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)23.71
EPS Next 2Y11.29%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
ZBRA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
316.01
+7.7 (+2.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners93.22%
Inst Owner Change-1.05%
Ins Owners0.7%
Ins Owner Change3.57%
Market Cap16.07B
Analysts78.33
Price Target355.74 (12.57%)
Short Float %1.94%
Short Ratio2.28
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)4.19%
Min EPS beat(2)-0.59%
Max EPS beat(2)8.97%
EPS beat(4)3
Avg EPS beat(4)6.32%
Min EPS beat(4)-0.59%
Max EPS beat(4)11.15%
EPS beat(8)6
Avg EPS beat(8)5.43%
EPS beat(12)8
Avg EPS beat(12)3.32%
EPS beat(16)12
Avg EPS beat(16)3.86%
Revenue beat(2)0
Avg Revenue beat(2)-0.64%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)-0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-0.67%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.95%
Revenue beat(12)5
Avg Revenue beat(12)-1.39%
Revenue beat(16)8
Avg Revenue beat(16)-0.93%
PT rev (1m)5.83%
PT rev (3m)-2.58%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)-4.6%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.9 | ||
| Fwd PE | 18.89 | ||
| P/S | 3.14 | ||
| P/FCF | 16.05 | ||
| P/OCF | 15.07 | ||
| P/B | 4.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.62 |
EPS(TTM)15.12
EY4.78%
EPS(NY)16.73
Fwd EY5.29%
FCF(TTM)19.69
FCFY6.23%
OCF(TTM)20.96
OCFY6.63%
SpS100.57
BVpS71.31
TBVpS-14.24
PEG (NY)2.38
PEG (5Y)23.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 15.14% | ||
| ROCE | 12.55% | ||
| ROIC | 10.78% | ||
| ROICexc | 12.52% | ||
| ROICexgc | 62.54% | ||
| OM | 15.51% | ||
| PM (TTM) | 10.74% | ||
| GM | 48.79% | ||
| FCFM | 19.57% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 38.24% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 19.34 | ||
| Cash Conversion | 110.7% | ||
| Profit Quality | 182.33% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 4.17 |
F-Score8
WACC9.08%
ROIC/WACC1.19
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)75.81%
EPS 3Y-9.87%
EPS 5Y0.88%
EPS Q2Q%13.52%
EPS Next Y8.78%
EPS Next 2Y11.29%
EPS Next 3Y10.97%
EPS Next 5Y13.52%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y-3.98%
Revenue growth 5Y2.12%
Sales Q2Q%6.24%
Revenue Next Year5.96%
Revenue Next 2Y6.06%
Revenue Next 3Y5.73%
Revenue Next 5Y5.94%
EBIT growth 1Y52.5%
EBIT growth 3Y-8.88%
EBIT growth 5Y1.11%
EBIT Next Year15.2%
EBIT Next 3Y11.42%
EBIT Next 5Y11.31%
FCF growth 1Y256.23%
FCF growth 3Y-1.88%
FCF growth 5Y8.86%
OCF growth 1Y197.77%
OCF growth 3Y-1.78%
OCF growth 5Y8.14%