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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

Zebra Technologies' recent performance was impacted by a cautious outlook for the fourth quarter, with investors concerned about a potential slowdown in its core business. Despite beating earnings expectations and raising its full-year guidance, the company's near-term margin headwinds from tariffs and supply chain shifts are a concern. The Elo Touch Solutions acquisition expands its addressable market by $8B, but integration challenges may arise. A rating upgrade to Strong Buy reflects growing optimism about the company's earnings prospects.

1.c. Company Highlights

2. Zebra Technologies' Q3 2025 Earnings: A Strong Beat

Zebra Technologies reported a strong third quarter, with sales increasing 5% year-over-year to $1.3 billion, adjusted EBITDA margin expanding 20 basis points to 21.6%, and non-GAAP diluted earnings per share rising 11% to $3.88, beating analyst estimates of $3.75. The company's Enterprise Visibility & Mobility segment grew 2%, driven by mobile computing, while the Asset Intelligence & Tracking segment grew 11%, led by RFID and printing. Adjusted gross margin declined 90 basis points to 48.2% due to higher U.S. import tariffs.

Publication Date: Nov -10

📋 Highlights
  • Strong Q3 Performance:: Sales reached $1.3 billion (+5 YoY), adjusted EBITDA margin improved to 21.6% (+20 bps), and non-GAAP EPS rose 11% to $3.88.
  • Capital Efficiency:: Generated $504M free cash flow YTD, held >$1B cash, and plans $500M share buybacks over 12 months with $1.5B credit capacity.
  • Segment Growth:: Asset Intelligence & Tracking grew 11% (driven by RFID/printing), while Enterprise Visibility & Mobility rose 2% (mobile computing led).
  • Future Growth Levers:: AI initiatives expected to drive revenue from 2026, with first revenues in 2026 and ramping post-2027, plus $100M Elo contribution in Q4.
  • Q4 Guidance:: Anticipates 8-11% sales growth (850 bps from acquisitions/FX), 22% EBITDA margin, and $4.20-$4.40 non-GAAP EPS.

Segment Performance

The company's segment performance was mixed, with the Enterprise Visibility & Mobility segment experiencing moderate growth, while the Asset Intelligence & Tracking segment saw strong growth driven by RFID and printing. The company's RFID solutions continue to be a strength across vertical markets, with strong double-digit growth rates driven by opportunities in retail, grocery, and quick-serve restaurants.

Cash Flow and Capital Allocation

Zebra Technologies generated $504 million of free cash flow year-to-date and held more than $1 billion of cash, with a modest debt leverage ratio of 1 and $1.5 billion credit capacity. The company has been deploying capital consistent with its allocation priorities, including share repurchases and acquisitions, and has committed to a $500 million share buyback over the next 12 months.

Outlook and Guidance

The company expects 8-11% sales growth in the fourth quarter, including approximately 850 basis points of contribution from its Elo and Photoneo acquisitions and favorable FX. Adjusted EBITDA margin is expected to be approximately 22%, and non-GAAP diluted earnings per share is expected to be in the range of $4.20 to $4.40. Analysts estimate next year's revenue growth at 10.2%.

Valuation

Using the current stock price and the company's latest financials, the P/E Ratio is 26.04, EV/EBITDA is 14.73, and ROE is 14.05%. These metrics suggest that the market is pricing in a moderate growth rate, but the company's strong Q3 results and guidance suggest that it may be able to exceed expectations.

3. NewsRoom

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Digimarc and Zebra Technologies Team Up to Dramatically Reduce Gift Card Fraud and Improve the Shopping Experience

Dec -04

Source: businesswire.com

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Zebra Technologies Corporation (ZBRA) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Zebra Technologies Corporation (NASDAQ:ZBRA) Receives Average Rating of “Moderate Buy” from Brokerages

Nov -30

Source: defenseworld.net

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Zebra Technologies Corporation $ZBRA Shares Acquired by Charles Schwab Investment Management Inc.

Nov -29

Source: defenseworld.net

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Cetera Investment Advisers Has $2.62 Million Position in Zebra Technologies Corporation $ZBRA

Nov -29

Source: defenseworld.net

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Zebra Technologies Appoints Melissa Luff Loizides as Chief People Officer

Nov -24

Source: businesswire.com

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Zebra Technologies Corporation (ZBRA) Presents at Stephens Annual Investment Conference 2025 Transcript

Nov -18

Source: seekingalpha.com

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9 Robotics Stocks to Buy Before the Automation Wave Peaks

Nov -15

Source: fool.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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Momentum: 10.0

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A-Score: 3.8/10

Value: 3.4

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

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Growth: 4.0

Quality: 2.3

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

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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

264.81$

Current Price

264.81$

Potential

-0.00%

Expected Cash-Flows