Zebra Technologies Corporation (ZBRA)
Valuation Overview•Is Zebra Technologies Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 52/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
ZBRA demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-2.3% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 14.4%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.5B | +8.3% | -2.3% | +3.9% | +4.0% | |
| EBITDA | $215.0M | — | +10.4% | — | — | |
| Net Income | $135.0M | -20.6% | -3.3% | — | — | |
| EPS (Diluted) | $2.67 | -19.6% | -2.4% | -2.6% | — | |
| Free Cash Flow | $163.0M | -12.9% | +26.2% | -1.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 47.5% | 46.9% | 46.6% | 46.3% |
| Operating Margin | 14.4% | 13.4% | 13.4% | 12.2% |
| Net Margin | 7.5% | 8.3% | 9.5% | 7.8% |
| FCF Margin | 15.0% | 10.9% | 11.5% | 12.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $4.21 | $4.75 | +12.8% | ||
| Q1'26 | $4.34 | $4.33 | -0.2% | ||
| Q4'25 | $3.75 | $3.88 | +3.5% | ||
| Q3'25 | $3.34 | $3.61 | +8.1% | ||
| Q2'25 | $3.60 | $4.02 | +11.7% | ||
| Q1'25 | $3.95 | $4.00 | +1.3% | ||
| Q4'24 | $3.23 | $3.49 | +8.0% | ||
| Q3'24 | $2.81 | $3.18 | +13.2% |
Total return is -19.1% (1Y), lagging the benchmark by -44.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -5.0% | -14.3% | — |
| 1Y | -19.1% | -44.1% | — |
| 3YCAGR | -5.3% | -25.2% | — |
| 5YCAGR | -13.7% | -26.7% | — |
| 10YCAGR | +15.2% | +1.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Zebra Technologies Corporation (ZBRA) valuation, health, and returns.
Zebra Technologies Corporation is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $203.95)
Zebra Technologies Corporation has multiple valuation anchors: DCF Intrinsic Value: $203.95 | Peer Relative Fair Value: $326.99 | Wall Street Analyst Target: $312.33 (implying +32.4% upside). A convergence of these signals offers higher conviction.
Zebra Technologies Corporation displays fair financial health with a composite quality score of 52/100, supported by a Altman Z-Score of 2.8 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 10.6%.
Zebra Technologies Corporation returns capital via buybacks instead of dividends, carrying a 5.2% buyback yield and reducing outstanding shares by -1.3% in the last 12 months.
Zebra Technologies Corporation's current growth trajectory is Accelerating. The company achieved +8.3% 1Y revenue growth and -19.6% 1Y EPS growth, compared to its 3Y revenue CAGR of -2.3%.
Wall Street consensus is Buy based on 27 analysts, beating EPS expectations in 92% of recent quarters with a 1-quarter streak. The consensus price target represents a +32.4% change from current levels.
Investment risks for Zebra Technologies Corporation include: -41.6% 1-year max drawdown, high beta (1.75x market volatility). Volatility risk is characterized by a beta of 1.75x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.