Zebra Tech (ZBRA) AI Stock Analysis

• Market Cap: $16.86B
• Dividend Yield: N/A
• Average Volume (3M): 419.50K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.55
• Revenue Growth: 16.72%
• EPS Growth: 109.89%
• Country: US
• Employees: 9,900
• Sector: Technology
• Sector Strength: 95
• Industry: Communication Equipment
• EPS (TTM): 4.02
• Shares Outstanding: 50,854,330
• 10 Day Avg. Volume: 344,938
• 30 Day Avg. Volume: 419,498
• PEG Ratio: 7.69
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.29
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 5.47
• 1Y Price Target: $330.00
• Price Target Upside: -2.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $375.00 ▲(10.61%Upside)

Zebra Technologies displays solid financial health and robust technical momentum, leading to a strong overall stock score. The company's high P/E ratio suggests market confidence in future growth, though it also poses valuation risks. Earnings call highlights operational success but also tariff-related challenges. Corporate events show positive strategic positioning, supporting a favorable outlook.

Positive Factors

Earnings Performance

Zebra reported first-quarter revenue and earnings above expectations, driven by growth in all product categories, end-markets, and geographies.

Growth Strategy

Zebra Technologies is effectively managing its growth strategy, according to the insights discussed by the company's CFO and Vice President of Investor Relations.

Market Perception

The company's leadership has shown commitment to enhancing investor relations, which could positively influence market perception.

Negative Factors

Investor Confidence

There are concerns regarding the accuracy and completeness of some factual statements, which may affect investor confidence.

Machine Vision Sector

Zebra Technologies has been a laggard in the machine vision sector due to its leverage to semiconductor and manufacturing end-markets, which have longer sales cycles compared to mobile computing.

Tariff Challenges

Management raised its expectation for the net tariff impact on gross profit to $70 million, signaling a substantial headwind.

Zebra Tech Business Overview & Revenue Model

Company Description

Zebra Technologies Corporation, together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It operates in two segments, Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The company designs, manufactures, and sells printers, which produce labels, wristbands, tickets, receipts, and plastic cards; dye-sublimination thermal card printers, which produce images which are used for personal identification, access control, and financial transactions; RFID printers that encode data into passive RFID transponders; accessories and options for our printers, including vehicle mounts and battery chargers; stock and customized thermal labels, receipts, ribbons, plastic cards, and RFID tags for printers; and temperature-monitoring labels primarily used in vaccine distribution. It also provides various maintenance, technical support, repair, and managed and professional services; real-time location systems and services; and tags, sensors, exciters, middleware software, and application software; as well as physical inventory management solutions, and rugged tablets and enterprise-grade mobile computing products and accessories. In addition, the company offers barcode scanners, image capture devices, and RFID readers; and workforce management solutions, workflow execution and task management solutions, and prescriptive analytics solutions, as well as communications and collaboration solutions. It also provides services, including maintenance, technical support, repair, managed and professional services; as well as cloud-based software subscriptions and robotics automation solutions. The company serves retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries through direct sales force, and network of channel partners. The company was founded in 1969 and is headquartered in Lincolnshire, Illinois.

How the Company Makes Money

Zebra Technologies makes money primarily through the sale of its hardware products, including mobile computers, barcode scanners, and RFID readers. A significant portion of its revenue is also generated from software solutions and services that complement its hardware offering, such as data capture and analytical software, which help businesses optimize their operations. Additionally, Zebra provides maintenance, support, and professional services to ensure the effective deployment and functioning of its solutions. The company often forms strategic partnerships with other technology and service providers to expand its market reach and enhance its product offerings, further contributing to its revenue growth.

Zebra Tech Financial Statement Overview

Summary

Zebra Tech presents a solid financial profile with strong profitability and cash flow generation. The income statement shows healthy margins and growth, though the EBIT and EBITDA margins suggest room for improvement. The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.64. Cash flow metrics are robust, indicating strong liquidity and operational efficiency.

Income Statement

Zebra Tech demonstrates strong profitability with a TTM gross profit margin of 48.3% and a net profit margin of 10.7%. The company has shown robust revenue growth, increasing by 11.5% from the previous period. However, EBIT margin at 15.2% and EBITDA margin at 18.4% indicate room for improvement compared to industry peers.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.64, indicating moderate leverage. Return on equity stands at 15.1%, showcasing efficient management of equity. The equity ratio is 45.9%, highlighting a solid base of equity financing. Overall, the company maintains a stable financial structure, although a high level of debt could pose risks in economic downturns.

Cash Flow

The cash flow statement is strong, with a free cash flow growth rate of 4.9% in the TTM period. The operating cash flow to net income ratio is 1.94, indicating strong cash generation relative to net income. Additionally, the free cash flow to net income ratio of 1.82 demonstrates effective conversion of earnings into cash. The company's cash flow metrics indicate robust liquidity and operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.98B	4.58B	5.78B	5.63B	4.45B
Gross Profit	2.41B	2.12B	2.62B	2.63B	2.00B
EBITDA	936.00M	652.00M	1.14B	1.17B	736.00M
Net Income	528.00M	296.00M	463.00M	837.00M	504.00M
Balance Sheet
Total Assets	7.97B	7.31B	7.53B	6.21B	5.38B
Cash, Cash Equivalents and Short-Term Investments	901.00M	137.00M	105.00M	332.00M	168.00M
Total Debt	2.36B	2.41B	2.16B	1.11B	1.37B
Total Liabilities	4.38B	4.27B	4.80B	3.23B	3.23B
Stockholders Equity	3.59B	3.04B	2.73B	2.98B	2.14B
Cash Flow
Free Cash Flow	954.00M	-91.00M	413.00M	1.01B	895.00M
Operating Cash Flow	1.01B	-4.00M	488.00M	1.07B	962.00M
Investing Cash Flow	-57.00M	-92.00M	-968.00M	-546.00M	-641.00M
Financing Cash Flow	-190.00M	117.00M	253.00M	-371.00M	-157.00M

Zebra Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 339.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBRA, the sentiment is Positive. The current price of 339.02 is above the 20-day moving average (MA) of 328.33, above the 50-day MA of 308.87, and above the 200-day MA of 331.96, indicating a bullish trend. The MACD of 8.08 indicates Positive momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 57.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZBRA.

Zebra Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSI	79 Outperform	$72.43B	36.20	189.18%	0.97%	7.45%	46.78%
ZBRA	74 Outperform	$16.86B	31.42	16.16%	―	16.72%	109.89%
HPE	73 Outperform	$27.36B	21.54	6.39%	2.49%	11.63%	-24.41%
ERIC	64 Neutral	$24.59B	14.70	19.63%	0.37%	0.98%	―
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
PI	61 Neutral	$3.56B	58.72	0.42%	―	21.80%	89.21%
NOK	57 Neutral	$22.13B	21.46	4.31%	3.50%	-2.39%	157.33%

Zebra Tech Corporate Events

Zebra Tech Expands Board with New Director Appointment

On July 25, 2025, Zebra Technologies Corporation expanded its Board of Directors from ten to eleven members by appointing Mary McDowell as a Class I director, who will also join the Audit Committee. McDowell, with extensive experience in leading global technology organizations, is expected to contribute significantly to Zebra’s mission of enhancing business workflows through automation and AI, potentially driving long-term value for shareholders.

The most recent analyst rating on (ZBRA) stock is a Hold with a $347.00 price target. To see the full list of analyst forecasts on Zebra Tech stock, see the ZBRA Stock Forecast page.

Zebra Tech Stockholders Approve Key Proposals at Meeting

On May 8, 2025, Zebra Tech held its Annual Meeting of Stockholders where key proposals were voted on. These included the election of three directors to the board, approval of executive compensation, and ratification of Ernst & Young LLP as independent auditors for the year ending December 31, 2025. The stockholders elected Nelda Connors, Frank Modruson, and Michael Smith as Class II Directors, approved the executive compensation package, and ratified the appointment of the auditors, reflecting strong support for the company’s leadership and financial oversight.

The most recent analyst rating on (ZBRA) stock is a Hold with a $347.00 price target. To see the full list of analyst forecasts on Zebra Tech stock, see the ZBRA Stock Forecast page.