ZOOM COMMUNICATIONS INC (1ZM.MI) Stock Fundamental Analysis
Europe - BIT:1ZM - US98980L1017 - Common Stock
74.65 EUR
+6.82 (+10.05%)
Taking everything into account, 1ZM scores 7 out of 10 in our fundamental rating. 1ZM was compared to 111 industry peers in the Software industry. 1ZM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1ZM. These ratings would make 1ZM suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1ZM was profitable.
1ZM had a positive operating cash flow in the past year.
Each year in the past 5 years 1ZM has been profitable.
Each year in the past 5 years 1ZM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.76%, 1ZM belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.27%, 1ZM is in the better half of the industry, outperforming 63.06% of the companies in the same industry.
1ZM's Return On Invested Capital of 8.34% is fine compared to the rest of the industry. 1ZM outperforms 63.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ZM is significantly below the industry average of 12.66%.
The last Return On Invested Capital (8.34%) for 1ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.76% | ||
| ROE | 13.27% | ||
| ROIC | 8.34% |
ROA(3y)5.63%
ROA(5y)9.55%
ROE(3y)6.98%
ROE(5y)12.42%
ROIC(3y)5.31%
ROIC(5y)8.46%
1.3 Margins
The Profit Margin of 1ZM (24.99%) is better than 81.98% of its industry peers.
In the last couple of years the Profit Margin of 1ZM has grown nicely.
Looking at the Operating Margin, with a value of 20.81%, 1ZM is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
1ZM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 76.38%, 1ZM is in line with its industry, outperforming 59.46% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ZM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 24.99% | ||
| GM | 76.38% |
OM growth 3Y-12.41%
OM growth 5Y53.59%
PM growth 3Y-13.57%
PM growth 5Y43.97%
GM growth 3Y0.67%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1ZM is destroying value.
1ZM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ZM has been increased compared to 5 years ago.
1ZM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 9.43 indicates that 1ZM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.43, 1ZM belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
There is no outstanding debt for 1ZM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.43 |
ROIC/WACC0.76
WACC10.97%
2.3 Liquidity
A Current Ratio of 4.45 indicates that 1ZM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.45, 1ZM belongs to the top of the industry, outperforming 88.29% of the companies in the same industry.
A Quick Ratio of 4.45 indicates that 1ZM has no problem at all paying its short term obligations.
1ZM's Quick ratio of 4.45 is amongst the best of the industry. 1ZM outperforms 88.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 |
3. Growth
3.1 Past
1ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.50%.
The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.63% in the past year.
Measured over the past years, 1ZM shows a very strong growth in Revenue. The Revenue has been growing by 49.60% on average per year.
EPS 1Y (TTM)5.5%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.07%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.71%
3.2 Future
Based on estimates for the next years, 1ZM will show a small growth in Earnings Per Share. The EPS will grow by 3.61% on average per year.
Based on estimates for the next years, 1ZM will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y9.37%
EPS Next 2Y5.07%
EPS Next 3Y5%
EPS Next 5Y3.61%
Revenue Next Year3.71%
Revenue Next 2Y3.54%
Revenue Next 3Y3.58%
Revenue Next 5Y3.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.02 indicates a correct valuation of 1ZM.
Based on the Price/Earnings ratio, 1ZM is valued cheaper than 90.09% of the companies in the same industry.
1ZM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
1ZM is valuated correctly with a Price/Forward Earnings ratio of 14.15.
1ZM's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ZM is cheaper than 86.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1ZM to the average of the S&P500 Index (34.43), we can say 1ZM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ZM indicates a rather cheap valuation: 1ZM is cheaper than 81.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1ZM is valued cheaper than 87.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
1ZM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1ZM may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)0.2
EPS Next 2Y5.07%
EPS Next 3Y5%
5. Dividend
5.1 Amount
1ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ZM (11/3/2025, 7:00:00 PM)
74.65
+6.82 (+10.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.7%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap22.34B
Revenue(TTM)4.75B
Net Income(TTM)1.19B
Analysts73
Price Target80.37 (7.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.41%
Min EPS beat(2)6.23%
Max EPS beat(2)8.59%
EPS beat(4)4
Avg EPS beat(4)5.53%
Min EPS beat(4)2.2%
Max EPS beat(4)8.59%
EPS beat(8)8
Avg EPS beat(8)9.69%
EPS beat(12)12
Avg EPS beat(12)15.45%
EPS beat(16)15
Avg EPS beat(16)14.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)0
Avg Revenue beat(12)-1.68%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)1.11%
PT rev (3m)7.71%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)7.74%
EPS NY rev (1m)5.15%
EPS NY rev (3m)9.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 14.15 | ||
| P/S | 5.44 | ||
| P/FCF | 14.02 | ||
| P/OCF | 13.52 | ||
| P/B | 2.89 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)4.97
EY6.66%
EPS(NY)5.27
Fwd EY7.07%
FCF(TTM)5.33
FCFY7.13%
OCF(TTM)5.52
OCFY7.4%
SpS13.72
BVpS25.84
TBVpS24.8
PEG (NY)1.6
PEG (5Y)0.2
Graham Number53.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.76% | ||
| ROE | 13.27% | ||
| ROCE | 10.88% | ||
| ROIC | 8.34% | ||
| ROICexc | 57.57% | ||
| ROICexgc | 79.2% | ||
| OM | 20.81% | ||
| PM (TTM) | 24.99% | ||
| GM | 76.38% | ||
| FCFM | 38.81% |
ROA(3y)5.63%
ROA(5y)9.55%
ROE(3y)6.98%
ROE(5y)12.42%
ROIC(3y)5.31%
ROIC(5y)8.46%
ROICexc(3y)36.3%
ROICexc(5y)N/A
ROICexgc(3y)50.43%
ROICexgc(5y)N/A
ROCE(3y)6.92%
ROCE(5y)11.03%
ROICexgc growth 3Y-24.37%
ROICexgc growth 5Y47.41%
ROICexc growth 3Y-31.14%
ROICexc growth 5Y37.92%
OM growth 3Y-12.41%
OM growth 5Y53.59%
PM growth 3Y-13.57%
PM growth 5Y43.97%
GM growth 3Y0.67%
GM growth 5Y-1.44%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 50.75% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 170.26% | ||
| Profit Quality | 155.27% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 | ||
| Altman-Z | 9.43 |
F-Score7
WACC10.97%
ROIC/WACC0.76
Cap/Depr(3y)124.25%
Cap/Depr(5y)194.34%
Cap/Sales(3y)2.78%
Cap/Sales(5y)3.03%
Profit Quality(3y)514.4%
Profit Quality(5y)371.14%
High Growth Momentum
Growth
EPS 1Y (TTM)5.5%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.07%
EPS Next Y9.37%
EPS Next 2Y5.07%
EPS Next 3Y5%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.71%
Revenue Next Year3.71%
Revenue Next 2Y3.54%
Revenue Next 3Y3.58%
Revenue Next 5Y3.67%
EBIT growth 1Y33.08%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year12.29%
EBIT Next 3Y6.58%
EBIT Next 5Y5.98%
FCF growth 1Y62.69%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y51.66%
OCF growth 3Y6.61%
OCF growth 5Y66.53%
ZOOM COMMUNICATIONS INC / 1ZM.MI FAQ
What is the fundamental rating for 1ZM stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1ZM.MI.
What is the valuation status of ZOOM COMMUNICATIONS INC (1ZM.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to ZOOM COMMUNICATIONS INC (1ZM.MI). This can be considered as Undervalued.
What is the profitability of 1ZM stock?
ZOOM COMMUNICATIONS INC (1ZM.MI) has a profitability rating of 7 / 10.
What is the expected EPS growth for ZOOM COMMUNICATIONS INC (1ZM.MI) stock?
The Earnings per Share (EPS) of ZOOM COMMUNICATIONS INC (1ZM.MI) is expected to grow by 9.37% in the next year.