Zebra Technologies Corporation Fundamental Analysis (NASDAQ: ZBRA)
Zebra Technologies Corporation Fundamental Analysis (NASDAQ: ZBRA)
Zebra Technologies Corporation (NASDAQ: ZBRA) shows weak financial fundamentals with a PE ratio of 34.86, profit margin of 9.22%, and ROE of 15.14%. The company generates $5.5B in annual revenue with moderate year-over-year growth of 8.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ZBRA's fundamental strength across five key dimensions:
Efficiency Score
WeakZBRA struggles to generate sufficient returns from assets.
Valuation Score
WeakZBRA trades at a premium to fair value.
Growth Score
ModerateZBRA shows steady but slowing expansion.
Financial Health Score
ModerateZBRA shows balanced financial health with some risks.
Profitability Score
ModerateZBRA maintains healthy but balanced margins.
Key Financial Metrics
Is ZBRA Expensive or Cheap?
P/E Ratio
ZBRA trades at 34.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ZBRA's PEG of 123.86 indicates potential overvaluation.
Price to Book
The market values Zebra Technologies Corporation at 5.46 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.02 times EBITDA. This signals the market has high growth expectations.
How Well Does ZBRA Make Money?
Net Profit Margin
For every $100 in sales, Zebra Technologies Corporation keeps $9.22 as profit after all expenses.
Operating Margin
Core operations generate 16.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.14 in profit for every $100 of shareholder equity.
ROA
Zebra Technologies Corporation generates $6.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zebra Technologies Corporation produces operating cash flow of $926.00M, showing steady but balanced cash generation.
Free Cash Flow
Zebra Technologies Corporation generates strong free cash flow of $855.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $17.95 in free cash annually.
FCF Yield
ZBRA converts 5.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
123.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ZBRA Stacks Against Its Sector Peers
| Metric | ZBRA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.86 | 36.46 | Neutral |
| ROE | 15.14% | 679.00% | Weak |
| Net Margin | 9.22% | -129189.00% (disorted) | Weak |
| Debt/Equity | 0.85 | 0.43 | Weak (High Leverage) |
| Current Ratio | 0.52 | 5.89 | Weak Liquidity |
| ROA | 6.24% | 242.00% | Weak |
ZBRA outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zebra Technologies Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.57%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-12.58%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
0.24%
Industry Style: Growth, Innovation, High Beta
Growing