Zebra Tech (ZBRA) AI Stock Analysis

• Market Cap: $16.25B
• Dividend Yield: N/A
• Average Volume (3M): 588.60K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.48
• Revenue Growth: 19.12%
• EPS Growth: 138.53%
• Country: US
• Employees: 9,900
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 3.61
• Shares Outstanding: 50,845,150
• 10 Day Avg. Volume: 527,564
• 30 Day Avg. Volume: 588,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: 17.90
• 1Y Price Target: $344.78
• Price Target Upside: 7.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $350.00 ▲(9.18% Upside)

Zebra Technologies' overall stock score reflects solid financial performance and strategic corporate actions, such as the acquisition of Elo Touch Solutions. However, the stock's valuation appears high, and technical indicators suggest potential bearish momentum. The positive earnings call and corporate events provide a counterbalance, indicating potential for future growth.

Positive Factors

Financial Performance

Zebra raised its full-year outlook.

Industry Tailwinds

There are positive long-term industry tailwinds for Zebra Technologies' machine vision exposure, including improvements in AI and robotics, which enhance use-cases and return on investment for customers.

Strategic Growth

Zebra's strategic focus is on expanding its market reach, which is seen as a positive driver for future growth.

Negative Factors

Investor Confidence

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

Market Reception

The stock was down 11% on the day, suggesting the acquisition of Elo was not well received by the market.

Market Share

Competition is high with Zebra holding less than 5% market share in machine vision, and current revenue contribution from this segment is minimal.

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 generates revenue through multiple streams, including the sale of hardware products, software solutions, and service offerings. The hardware segment, which includes barcode scanners, mobile computers, and RFID devices, constitutes a significant portion of the company's revenue. Additionally, Zebra has developed software solutions that enhance asset tracking and inventory management, providing recurring revenue through licensing and subscriptions. Service offerings, including maintenance, support, and consulting, further contribute to its income. The company also benefits from strategic partnerships with key players in various industries, facilitating the integration of its technologies into broader business ecosystems and driving sales growth.

Zebra Tech Financial Statement Overview

Summary

Zebra Tech demonstrates solid financial health with strong profitability and a balanced capital structure. The company maintains stable margins and a healthy return on equity. However, the declining free cash flow and slight pressure on operational margins highlight areas for improvement.

Income Statement

Zebra Tech's income statement shows a strong gross profit margin of approximately 48.6% TTM, indicating efficient cost management. The net profit margin is stable at around 10.6% TTM, reflecting consistent profitability. Revenue growth is modest at 1.6% TTM, suggesting steady but slow expansion. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.64 TTM, indicating a balanced approach to leveraging. Return on equity is healthy at 15.4% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 45.6%, suggesting a solid equity base relative to total assets. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Zebra Tech's cash flow statement shows a decline in free cash flow growth of -14.8% TTM, which is a concern for future liquidity. The operating cash flow to net income ratio is 0.58 TTM, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.92 TTM, reflecting good cash conversion. However, the negative growth in free cash flow suggests potential challenges in sustaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.19B	4.98B	4.58B	5.78B	5.63B	4.45B
Gross Profit	2.52B	2.41B	2.12B	2.62B	2.63B	2.00B
EBITDA	969.00M	936.00M	761.00M	1.14B	1.17B	736.00M
Net Income	548.00M	528.00M	296.00M	463.00M	837.00M	504.00M
Balance Sheet
Total Assets	7.94B	7.97B	7.31B	7.53B	6.21B	5.38B
Cash, Cash Equivalents and Short-Term Investments	872.00M	901.00M	137.00M	105.00M	332.00M	168.00M
Total Debt	2.32B	2.36B	2.41B	2.20B	1.15B	1.40B
Total Liabilities	4.32B	4.38B	4.27B	4.80B	3.23B	3.23B
Stockholders Equity	3.62B	3.59B	3.04B	2.73B	2.98B	2.14B
Cash Flow
Free Cash Flow	853.00M	954.00M	-91.00M	413.00M	1.01B	895.00M
Operating Cash Flow	925.00M	1.01B	-4.00M	488.00M	1.07B	962.00M
Investing Cash Flow	-131.00M	-57.00M	-92.00M	-968.00M	-546.00M	-641.00M
Financing Cash Flow	-332.00M	-190.00M	117.00M	253.00M	-371.00M	-157.00M

Zebra Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 320.58 is below the 20-day moving average (MA) of 321.12, above the 50-day MA of 318.92, and below the 200-day MA of 327.00, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 51.83 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	75 Outperform	$76.75B	37.18	152.71%	0.93%	6.45%	44.24%
HPE	73 Outperform	$29.60B	23.19	6.39%	2.31%	11.63%	-24.41%
ERIC	70 Outperform	$26.68B	15.82	19.63%	3.45%	0.98%	―
PI	69 Neutral	$5.11B	24,413.89	0.42%	―	13.96%	-96.21%
ZBRA	67 Neutral	$16.25B	30.19	15.87%	―	19.12%	138.53%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
NOK	57 Neutral	$23.30B	22.13	4.31%	3.61%	-2.39%	157.33%

Zebra Tech Corporate Events

Zebra Tech to Acquire Elo Touch for $1.3B

On August 3, 2025, Zebra Technologies announced a definitive agreement to acquire Elo Touch Solutions for $1.3 billion, aiming to enhance its offerings in self-service and consumer-facing workflows. The acquisition is expected to expand Zebra’s addressable market by approximately $8 billion and be immediately accretive to earnings upon closing, with anticipated synergies boosting annual EBITDA by $25 million within three years.

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.