Accelerating Earnings Growth with a Much Improved Balance Sheet
- Trading for only 14.7x our 12-month forward EPS estimate, the shares are still off 10% from their June 2015 high of $119 despite EPS projected up 20% to a record $6.80 in 2017 and 14% in 2018 to $7.78.
- Strong free cash flow has reduced debt to 3.6x EBITDA net of cash (down from 5.1x at the time of the acquisition of Motorola’s Enterprise Solutions business), projected to decline to an investment grade 3x by mid-2018, which will allow for bolt-on acquisitions and share repurchase.
- The operating margin is projected to improve to 16.4% in 2017 (from 15.4% in 2016) and 17.2% in 2018, aided by benefits from the Motorola acquisition, operational efficiencies, and cost reductions.
Zebra Technologies designs, manufactures, and sells a range of automatic identification and data capture products, including: mobile computers, barcode scanners and imagers, radio frequency identification devices (RFID) readers, printers for barcode labeling and personal identification, real-time location systems, related accessories and supplies, such as labels and other consumables, and software utilities and applications. The company has two segments: Asset Intelligence and Tracking, which includes barcode and card printing, supplies, services, location solutions, and retail solutions; and Enterprise Visibility and Mobility, which includes mobile computing, data capture, RFID, and services.
Great Lakes Review is located in Cleveland, Ohio, was founded in 1981 and became a division of Wellington Shields & Co. LLC in 2011. Great Lakes Review is a research boutique focused on the fundamentally-oriented investor seeking companies that dominate their respective specialty niche regardless of industry. The objective is to make money for the long-term by gradually accumulating a diversified portfolio from a universe of no more than 30 companies. Although short-term-oriented accounts will be alerted to trading opportunities, aggressive sell recommendations are triggered only by a deterioration in long-term fundamentals, not by short-term blips or investor fancy. Coverage of those names that lose their earnings momentum or earnings predictability may be dropped and replaced with more vital candidates.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.