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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ZBRA

Negative drivers behind Zebra Technologies Corporation's recent performance include missed earnings estimates, increasing expenses, and declining cash levels. The company's Q4 earnings release revealed a revenue growth of 10.6%, but this was offset by a decline in adjusted EBITDA margin to 22.1%. Additionally, the company's cash levels declined, which may indicate a potential liquidity issue. Furthermore, the company's recent earnings estimate revisions may not translate into an upside in the stock, as it may face economic uncertainty and margin pressure from memory pricing in 2026.

1.c. Company Highlights

2. Zebra Technologies: Strong Q4 Results and Promising Outlook

Zebra Technologies Corporation reported a robust fourth-quarter performance, with sales reaching nearly $1,500,000,000, representing a 10.6% increase, or 2.5% on an organic basis. The adjusted EBITDA margin stood at 22.1%, and non-GAAP diluted earnings per share came in at $4.33, up 8% from the prior year. For the full year, the company achieved over 6% sales growth and 17% non-GAAP diluted earnings per share growth, generating more than $800,000,000 of free cash flow. The actual EPS of $4.33 was slightly below estimates of $4.34.

Publication Date: Feb -15

📋 Highlights
  • Q4 Sales Growth:: Zebra reported Q4 sales of $1.5B, a 10.6% increase YoY, with 2.5% organic growth, driven by the Elo acquisition and FX tailwinds.
  • Full-Year Free Cash Flow:: Generated $800M in free cash flow, returning $600M to shareholders via share repurchases, with $1B in expanded buyback authorization.
  • 2026 RFID Growth:: RFID business projected to deliver high double-digit growth, fueled by retail, logistics, and emerging sectors like food and government.
  • Margin Resilience:: Maintained 22.1% adjusted EBITDA margin despite memory component price hikes, with plans to fully offset headwinds via pricing and cost controls.
  • Debt & Liquidity:: Debt leverage at 2x, strong cash position, and $300M in Q4 share repurchases, aiming to return ~50% of $900M free cash flow in 2026.

Financial Performance Highlights

The company's financial performance was marked by significant returns to shareholders, with over $300,000,000 of repurchases in Q4 and nearly $600,000,000 for the full year. The Board of Directors has expanded the authorization by $1,000,000,000, underscoring the company's commitment to returning value to shareholders. The company's debt leverage is around 2x, with a strong cash position and a healthy balance sheet.

Guidance and Outlook

Zebra Technologies expects sales growth of 11% to 15% in the first quarter and 9% to 13% for the full year, with an adjusted EBITDA margin of approximately 22% and non-GAAP diluted earnings per share between $17.70 and $18.30. The company is well-positioned to benefit from secular trends to digitize and automate workflows, with a $35,000,000,000 served market representing a significant growth opportunity. Analysts estimate next year's revenue growth at 5.2%, indicating a potential slowdown in growth rate.

Valuation Metrics

With a P/E Ratio of 31.8, P/B Ratio of 3.71, and EV/EBITDA of 15.54, the company's valuation appears to be relatively high. However, the Free Cash Flow Yield of 6.2% and ROIC of 8.63% suggest that the company is generating strong cash flows and returns on invested capital. The Net Debt / EBITDA ratio of 2.6 indicates a manageable debt burden.

Business Trends and Opportunities

The company is accelerating investments in RFID, machine vision, and AI, and has a strong pipeline of opportunities. The RFID business is expected to see high double-digit growth in 2026, driven by broad-based opportunities across the supply chain. The machine vision business is recovering, driven by growth in transportation and logistics, as well as manufacturing wins.

Challenges and Risk Management

The company is working to mitigate the impact of memory shortages on its business, particularly in mobile devices. It has secured early samples of new memory and is collaborating with suppliers to ensure a stable supply. Industry-wide price increases for memory components are expected to be a two-point headwind, but the company expects to fully mitigate this impact through various initiatives.

3. NewsRoom

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Connection Earns Zebra Technologies' 2025 Partner of the Year Award

Mar -18

Source: businesswire.com

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Alliancebernstein L.P. Boosts Position in Zebra Technologies Corporation $ZBRA

Mar -16

Source: defenseworld.net

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Zebra (ZBRA) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Mar -10

Source: zacks.com

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Zebra Technologies Introduces “Orchestrated Care” Approach to Enhance Patient Care at HIMSS26

Mar -05

Source: businesswire.com

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Zebra Technologies Corporation (ZBRA) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -04

Source: seekingalpha.com

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Buy 5 Non-Tech Wide Moat Stocks to Enhance Your Portfolio Returns

Feb -27

Source: zacks.com

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Zebra Technologies Corporation $ZBRA Shares Acquired by Fox Run Management L.L.C.

Feb -25

Source: defenseworld.net

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Zebra's AI-powered 3D Sensors Save Money and Cut Waste for EBI Electric

Feb -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.72%)

6. Segments

Enterprise Visibility & Mobility

Expected Growth: 7%

Zebra Technologies' Enterprise Visibility & Mobility segment growth is driven by increasing demand for real-time asset tracking, inventory management, and workforce optimization. The rise of IoT, cloud-based solutions, and mobile devices fuels this growth. Additionally, the need for supply chain visibility, operational efficiency, and data-driven decision making in industries such as retail, manufacturing, and healthcare also contribute to the 7% growth.

Asset Intelligence & Tracking

Expected Growth: 9%

Zebra Technologies' Asset Intelligence & Tracking segment growth is driven by increasing demand for IoT-enabled solutions, rising need for supply chain visibility, and growing adoption of automation and analytics in industries such as retail, manufacturing, and healthcare. Additionally, the segment benefits from the company's strong brand reputation, strategic partnerships, and continuous innovation in RFID and barcode scanning technologies.

7. Detailed Products

Barcode Scanners

Zebra's barcode scanners are designed to capture data quickly and accurately, increasing productivity and efficiency in various industries such as retail, manufacturing, and healthcare.

Mobile Computers

Zebra's mobile computers are rugged and reliable, providing real-time data access and communication for workers in the field, warehouse, or retail environments.

Printers

Zebra's printers are designed for high-quality label and barcode printing, offering reliability and ease of use in various industries such as manufacturing, healthcare, and retail.

RFID Solutions

Zebra's RFID solutions provide real-time inventory tracking, asset management, and supply chain visibility, increasing efficiency and reducing costs.

Locationing Solutions

Zebra's locationing solutions provide real-time location tracking and navigation, improving operational efficiency and accuracy in various industries.

Software Solutions

Zebra's software solutions provide data analytics, device management, and workflow automation, increasing productivity and efficiency in various industries.

8. Zebra Technologies Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Zebra Technologies Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing adoption of digital technologies.

Bargaining Power Of Customers

Zebra Technologies Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Zebra Technologies Corporation relies on a few key suppliers for components and materials. While the company has some bargaining power due to its size, suppliers may still have some leverage due to the specialized nature of the components.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant investments in research and development, manufacturing, and marketing.

Intensity Of Rivalry

The industry in which Zebra Technologies Corporation operates is highly competitive, with several established players competing for market share. The company must continually innovate and invest in marketing and sales efforts to maintain its position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.70%
Debt Cost 6.64%
Equity Weight 57.30%
Equity Cost 12.68%
WACC 10.10%
Leverage 74.51%

11. Quality Control: Zebra Technologies Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Credo Technology Group Holding

A-Score: 4.9/10

Value: 0.0

Growth: 9.4

Quality: 8.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

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Ubiquiti

A-Score: 4.9/10

Value: 0.3

Growth: 8.1

Quality: 8.4

Yield: 1.0

Momentum: 9.0

Volatility: 2.3

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Belden

A-Score: 4.3/10

Value: 3.8

Growth: 5.9

Quality: 5.5

Yield: 0.0

Momentum: 4.5

Volatility: 6.3

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EchoStar

A-Score: 4.0/10

Value: 7.4

Growth: 4.2

Quality: 1.6

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Zebra Technologies

A-Score: 3.7/10

Value: 3.4

Growth: 5.2

Quality: 6.6

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Lumentum

A-Score: 3.5/10

Value: 2.0

Growth: 4.0

Quality: 3.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

205.87$

Current Price

205.87$

Potential

-0.00%

Expected Cash-Flows