Zebra Technologies Corporation (ZBRA)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business that earns good returns and a price that leaves room for error. Zebra sells automatic identification and data capture solutions, including label and card printers and related data-capture products, worldwide. The latest filed quarter, fiscal Q2 2026 (period ended 2026-07-04), showed revenue of $1.6B, net income of $233.0M, and diluted EPS of $4.85; fiscal Q2 2025 (period ended 2025-06-28) had revenue of $1.3B, net income of $112.0M, and EPS of $2.19. But the longer record is uneven: fiscal year 2025 (period ended 2025-12-31) revenue was $5.4B and net income $419.0M, down from fiscal year 2024 (period ended 2024-12-31) net income of $528.0M. FairStock's computed Lynch category is slow grower, with profits shrinking 3.6% a year over five years. Financial health is acceptable, not fortress-like: D/E 0.86, Altman Z 3.06, Piotroski 6/9, ROCE 7.32%, ROE 15.29%, and trailing FCF $904.0M for a 5.0% FCF yield. The balance sheet and cash generation give time, but returns on capital are modest. Valuation is the rub. At the 2026-10-26 close of $384.15, FairStock shows P/E 35.18, P/B 5.30, EV/EBITDA 19.99, and Graham Number $133.46, a margin of safety of -189.56%. PEG 0.33 may hint at growth, but I do not pay 35 times earnings for a slow grower with shrinking five-year profit. I would want a materially lower price or clearer, durable profit growth before calling this a value opportunity.

In plain English: Zebra makes printers and data-capture equipment used to label, track, and identify items. The business looks mixed: sales are growing and cash flow is solid, but profits have been uneven and the stock is not cheap compared with its earnings, book value, and a conservative value estimate. At the latest close, the price looks expensive versus those numbers.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer