Why Quality Investors Should Delve into ZOOM COMMUNICATIONS INC (NASDAQ:ZM) for Investment Opportunities.

In this article we will dive into ZOOM COMMUNICATIONS INC (NASDAQ:ZM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ZOOM COMMUNICATIONS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of ZOOM COMMUNICATIONS INC

• ZM has achieved substantial revenue growth over the past 5 years, with a 49.6% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• ZM demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 67.25% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.0, ZM exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• The Profit Quality (5-year) of ZM stands at 371.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• With a robust 5-year EBIT growth of 130.0%, ZM showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• ZM has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for ZM?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to ZM. ZM was compared to 281 industry peers in the Software industry. ZM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ZM is not valued too expensively and it also shows a decent growth rate. These ratings would make ZM suitable for quality investing!

Our latest full fundamental report of ZM contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.