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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Zebra Technologies Corporation (XNAS:ZBRA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
ZBRA
Name:
ZEBRA TECHNOLOGIES CORPORATION (XNAS:ZBRA)
Sector:
40.00M
Industry:
Communication Equipment
CEO:
Mr. Anders Gustafsson
Total Employees:
9,800
Our Technological Advancement Rating
Our Rating:
A+
Technological advancement compared to industry is 870.08% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF ZEBRA TECHNOLOGIES CORPORATION(ZBRA) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND COMMUNICATION EQUIPMENT INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
297.6
One Month Price Target:
$300.39
Six Month Price Target :
$314.35
Likely Price in One Year's Time:
Ticker:
$331.11
Likely Trading Range Today Under (Normal Volatility)
$296.46
Price Upper limit ($) :
$299.06
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$282.03
This week:
$262.78
This month :
$227.96
Other Primary facts
Market Cap:
15.02B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
51.79M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.94%
-15.57%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$369.85
$336.64
$225.35
$258.56
Medium risk (<10%) entry points
Buy Call
Sell Call
$325.83
Buy Put:
Sell Put:
$318.74
$269.28
$276.46
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
ZBRA
Sharpe Ratio:
1.78%
Comparison:
ZBRA, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 37.24% higher than the industry
& is -21.94% lower than the market/S&P 500 average
Average Returns/Yield of
ZBRA
Daily returns:
0.05%
Weekly returns:
0.27%
Monthly returns:
1.09%
Yearly returns:
12.89%
Comparison of returns:
Average annual returns/yield (last 3 years) is 1.79% above industry average
Classification:
ZBRA, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.92
Statistical test of Returns:
ZBRA has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.57%
Weekly Volatility:
5.76%
Monthly Volatility:
11.51%
Yearly Volatility:
39.88%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.75%
Volatility in last five trading days has been 6.93% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.23%
Weekly VaR:
-11.70%
Monthly VaR:
-23.40%
How Much Can the price of
ZBRA
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-20%
Worst case (decline):
-81.06%
This translates to price declining to:
$237.88
This translates to price declining to:
$56.36
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
ZBRA is a 65.16% riskier investment compared to the market/S&P 500 & is 41.49% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -18.76% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
ZBRA
Beta in relation to market/S&P 500--1.68
Expected beta in 1 year's time:
0.963
Expected beta in 3 year's time:
1.362
Unlevered (debt free) Beta:
1.281
Beta in relation to Nasdaq (XNAS):
1.066
Beta in relation to all global stocks::
0.821
Beta Comparison & Analysis
Beta of competitors/peers::
1.128
Beta is 48.47% higher than peers
Average Industry Beta:
1.197
Beta is 39.95% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
31.00%
Sustainable growth rate is -32.14% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.015
Alpha is -198.42% below industry average alpha yield
Alpha is -96% below the market average
Analysis of Cost of Capital of
ZBRA
Equity cost of capital:
0.146
Equity cost of capital is 28.86% above industry mean WACC
Unlevered (without debt) cost of capital:
11.18%
Before-tax cost of debt:
2.96%
After-tax cost of debt:
2.34%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.34%
WACC is 42.63% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$110.29
Revenue growth rate per share of (3Y):
5.3
Annual revenue growth rate is 138.95% above the industry average
EPS:
$15.14
Expected Annual growth rate of EPS (3Y):
15.50%
Expected future EPS growth rate is -3.19% lower than the Communication Equipment industry
Free cash flow (FCF) per share:
$15.48
-
-
Debt per share
$19.98
EBITDA per share
$22.67
Valuation Analysis Today of
ZBRA
P/E Ratio:
32.36
P/E Ratio of Competitors/Peers:
793.41
P/E ratio is -95.92% lower than main peers & is -12.82% lower than the industry
Stock price/value with industry average P/E ratio: $562.06
ZBRA is -47.05% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
2.7
Price to sales ratio is 17.83% above the industry mean
P/B (Price to book value ratio):
5.3
Price to free cash flow: 19.22
Price to free cash flow ratio is -40.20% lower than the industry
Net income growth rate (3Y):
99.26%
Net income growth rate is -78.23% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
35.62%
Net debt to equity ratio:
38.20%
Debt to assets ratio:
16.89%
Net debt to assets ratio:
18.11%
Debt-to-asset ratio is -69.48% below industry average
Ability to repay debt:
Interest coverage ratio:
31.73
Interest coverage ratio is -12.97% less than industry average
Looking forward:
Debt growth rate:
-10.20%
Annual debt growth is 1% higher than industry average debt growth rate
Debt repayment rate in last quarter: 2.36%
Analysis of Key Statistics
Correlation of price movement with the market:
0.765
Statistical significance of correlation:
ZBRA has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.552
Stock price is 38.67% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.552
Correlation of price movement with Nasdaq (^IXIC):
-0.025
Covariance of price movement with the market:
-0.037
Kurtosis
4.48
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.087
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
ZBRA
Gross Profit Margin Ratio:
183%
Operating Profit Margin Ratio:
16.09%
Operating profit margin is 150.23% higher than the industry
Net Profit Margin Ratio:
183%
Effective Tax Rate:
13.59%
Effective tax rate is -51.30% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
28.01%
Return on equity (ROE) is -19.35% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
13.28%
Return on assets (ROA) is 204.13% higher than the industry
Financial Leverage:
1.2x
Current Ratio:
0.87
Current ratio is -60.80% below industry average
Cash Conversion Cycle (days):
-21.7
Cash conversion cycle is -134.65% below industry average
The remaining useful life of property plant & equipment is: 7.6 years
Stock based compensation to net income ratio:
2.09%
In-depth Efficiency Analysis
Revenue generated per employee:
582.9K
Each employee generates 6% more revenue than industry average revenue per employee
EBITDA generated per employee:
119.8K
Each employee generates 59% more EBITDA than industry average revenue per employee
Profit generated per employee:
83.1K
Each employee generates 236% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
4.1K
Each employee generates -359% less free cash flow than industry average revenue per employee
Assets/Capital per employee
465.3K
Each employee generates -359% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 25.17%
Growth rate in R&D investment/expenditure is -1187.59% lower than the industry
Competitors/Peer firms of
ZBRA
MXIM
VERISIGN, INC. (XNAS:VRSN)
Garmin Ltd (XNYS:GRMN)
DATADOG, INC. (XNAS:DDOG)
SKYWORKS SOLUTIONS, INC. (XNAS:SWKS)
ANSYS, INC. (XNAS:ANSS)
ZSCALER, INC. (XNAS:ZS)
WESTERN DIGITAL CORPORATION (XNAS:WDC)
XILINX, INC. (XNAS:XLNX)
Current Analyst Ratings
Strong buy�17%
Buy�8%
Hold�21%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
4/2/22
Revenue:
5.71B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
3.10B
2.61B
564.00M
365.00M
970.00M
605.00M
122.00M
1.66B
30.00M
37.00M
195.00M
1.17B
919.00M
814.00M
942.00M
128.00M
814.00M
Statement of Cash Flow
Date:
Period:
52.00M
Differed Income Tax :
- 37000.00K
Stock Based Compensation :
17.00M
Change in Working Capital :
- 144000.00K
Accounts Receivables:
- 56000.00K
Other Working Capital:
66.00M
Other Non-Cash Items:
- 39000.00K
Net Cash Provided by Operating Activities:
54.00M
Investments in PP&E:
- 14000.00K
Net Acquisitions:
-
Purchases of Investments:
- 5000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/2/22
2022
Q1
141.00M
-
141.00M
822.00M
469.00M
137.00M
1.57B
404.00M
3.27B
437.00M
-
226.00M
227.00M
4.56B
-
6.13B
691.00M
216.00M
69.00M
397.00M
495.00M
1.80B
1.04B
67.00M
1.42B
-
3.22B
1.00M
3.78B
- 29000.0K
- 844000.00K
April 2, 2022 at 6:00:00 AM
4.76B
2.91B
6.13B
-
1.25B
1.1B
-
-
- 19000.00K
- 25000.00K
-
- 305000.00K
-
110.00M
- 220000.00K
- 2000.00K
- 203000.00K
141.00M
344.00M
54.00M
- 14000.00K
40.00M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
ZBRA
2023
2024
2025
2026
2027
$332.77
$4,246.59
$4,724.70
$5,256.64
$5,848.47