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Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. In total, we are pretty happy with Zebra Technologies' performance. This is likely what's driving the high earnings growth number discussed above. Zebra Technologies doesn't pay any dividend to its shareholders, meaning that the company has been reinvesting all of its profits into the business. Is Zebra Technologies Efficiently Re-investing Its Profits? So, you may want to check if Zebra Technologies is trading on a high P/E or a low P/E, relative to its industry. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. NasdaqGS:ZBRA Past Earnings Growth December 10th 2021 As a result, Zebra Technologies' exceptional 51% net income growth seen over the past five years, doesn't come as a surprise.Īs a next step, we compared Zebra Technologies' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 14%. Additionally, the company's ROE is higher compared to the industry average of 14% which is quite remarkable. To begin with, Zebra Technologies has a pretty high ROE which is interesting. Zebra Technologies' Earnings Growth And 30% ROE Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. We now need to evaluate how much profit the company reinvests or 'retains' for future growth which then gives us an idea about the growth potential of the company. Thus far, we have learned that ROE measures how efficiently a company is generating its profits. What Is The Relationship Between ROE And Earnings Growth?

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