Zebra Tech (ZBRA) AI Stock Analysis

• Market Cap: $14.45B
• Dividend Yield: N/A
• Average Volume (3M): 657.87K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.60
• Revenue Growth: 16.72%
• EPS Growth: 109.89%
• Country: US
• Employees: 9,900
• Sector: Technology
• Sector Strength: 78
• Industry: Communication Equipment
• EPS (TTM): 4.02
• Shares Outstanding: 50,854,330
• 10 Day Avg. Volume: 603,096
• 30 Day Avg. Volume: 657,871
• PEG Ratio: 6.39
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.55
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 4.65
• 1Y Price Target: $310.00
• Price Target Upside: 9.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $322.00 ▲( 13.30% Upside)

Zebra Technologies shows strong financial performance with robust revenue growth and liquidity, despite valuation concerns and external challenges like tariffs. While technical indicators are mixed, the company's solid earnings call performance and strategic initiatives support a positive outlook, albeit with caution.

Positive Factors

Earnings

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

Financial Performance

Q1 results exceeded expectations, and investors largely cheered the better-than-feared outlook for Q2 and full-year 2025.

Innovation

Zebra Technologies is well positioned for innovations around AI and expanding RFID use cases due to its leadership and key partnerships.

Negative Factors

Market Uncertainty

ZBRA’s full-year outlook fell short of Street expectations, owing in large part to headwinds from import tariffs and broader uncertainty in the markets.

Tariffs

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

Valuation

The current trading valuation of Zebra Technologies is considered high, with recovery largely built into the price.

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 demonstrates strong profitability with notable revenue growth and robust cash flow metrics. While the balance sheet is stable, moderate leverage and high debt levels warrant attention. Overall, the company maintains a solid financial profile with strong cash generation.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.11B	4.98B	4.58B	5.78B	5.63B	4.45B
	Gross Profit
2.46B	2.41B	2.12B	2.62B	2.63B	2.00B
	EBIT
777.00M	742.00M	481.00M	1.35B	979.00M	651.00M
	EBITDA
976.00M	936.00M	652.00M	1.14B	1.17B	736.00M
	Net Income Common Stockholders
549.00M	528.00M	296.00M	463.00M	837.00M	504.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
879.00M	901.00M	137.00M	105.00M	332.00M	168.00M
	Total Assets
7.90B	7.97B	7.31B	7.53B	6.21B	5.38B
	Total Debt
2.36B	2.36B	2.41B	2.16B	1.11B	1.37B
	Net Debt
1.48B	1.46B	2.28B	2.06B	780.00M	1.21B
	Total Liabilities
4.27B	4.38B	4.27B	4.80B	3.23B	3.23B
	Stockholders Equity
3.63B	3.59B	3.04B	2.73B	2.98B	2.14B
Cash Flow		Free Cash Flow
1.00B	954.00M	-91.00M	413.00M	1.01B	895.00M
	Operating Cash Flow
1.07B	1.01B	-4.00M	488.00M	1.07B	962.00M
	Investing Cash Flow
-128.00M	-57.00M	-92.00M	-968.00M	-546.00M	-641.00M
	Financing Cash Flow
-185.00M	-190.00M	117.00M	253.00M	-371.00M	-157.00M

Zebra Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 284.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBRA, the sentiment is Negative. The current price of 284.21 is above the 20-day moving average (MA) of 275.12, above the 50-day MA of 263.65, and below the 200-day MA of 340.49, indicating a neutral trend. The MACD of 10.18 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBRA.

Zebra Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	80 Outperform	$15.49B	19.65	16.23%	―	-8.07%	-8.00%
NTAP	78 Outperform	$20.22B	18.14	114.33%	2.12%	5.46%	23.49%
ZBRA	74 Outperform	$14.45B	26.86	16.16%	―	16.72%	109.89%
PSTG	72 Outperform	$18.14B	181.24	8.29%	―	11.92%	74.08%
WDC	66 Neutral	$17.51B	9.54	28.45%	―	21.22%	―
JBL	64 Neutral	$17.75B	39.63	24.10%	0.19%	-14.45%	-64.32%
Sector *	61 Neutral	$11.28B	10.16	-6.88%	2.97%	7.41%	-8.93%

Zebra Tech Corporate Events

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.