ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
Europe - FRA:5ZM - US98980L1017 - Common Stock
67.44 EUR
-0.5 (-0.74%)
Overall 5ZM gets a fundamental rating of 7 out of 10. We evaluated 5ZM against 110 industry peers in the Software industry. 5ZM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 5ZM has a correct valuation and a medium growth rate. This makes 5ZM very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 5ZM was profitable.
5ZM had a positive operating cash flow in the past year.
5ZM had positive earnings in each of the past 5 years.
In the past 5 years 5ZM always reported a positive cash flow from operatings.
1.2 Ratios
5ZM's Return On Assets of 9.57% is amongst the best of the industry. 5ZM outperforms 87.38% of its industry peers.
The Return On Equity of 5ZM (11.78%) is better than 70.87% of its industry peers.
5ZM's Return On Invested Capital of 7.22% is fine compared to the rest of the industry. 5ZM outperforms 67.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 5ZM is significantly below the industry average of 12.42%.
The last Return On Invested Capital (7.22%) for 5ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 11.78% | ||
| ROIC | 7.22% |
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
5ZM has a better Profit Margin (22.31%) than 88.35% of its industry peers.
5ZM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.13%, 5ZM is in the better half of the industry, outperforming 78.64% of the companies in the same industry.
In the last couple of years the Operating Margin of 5ZM has grown nicely.
With a Gross Margin value of 75.85%, 5ZM perfoms like the industry average, outperforming 59.22% of the companies in the same industry.
5ZM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 22.31% | ||
| GM | 75.85% |
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), 5ZM is destroying value.
5ZM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 5ZM has more shares outstanding
5ZM 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
5ZM has an Altman-Z score of 8.94. This indicates that 5ZM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.94, 5ZM belongs to the best of the industry, outperforming 85.44% of the companies in the same industry.
There is no outstanding debt for 5ZM. 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 | 8.94 |
ROIC/WACC0.81
WACC8.93%
2.3 Liquidity
A Current Ratio of 4.57 indicates that 5ZM has no problem at all paying its short term obligations.
The Current ratio of 5ZM (4.57) is better than 89.32% of its industry peers.
5ZM has a Quick Ratio of 4.57. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
5ZM has a Quick ratio of 4.57. This is amongst the best in the industry. 5ZM outperforms 89.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.57 | ||
| Quick Ratio | 4.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.89% over the past year.
Measured over the past years, 5ZM shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.67% on average per year.
Looking at the last year, 5ZM shows a small growth in Revenue. The Revenue has grown by 2.98% in the last year.
5ZM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.60% yearly.
EPS 1Y (TTM)3.89%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%5.93%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%2.93%
3.2 Future
Based on estimates for the next years, 5ZM will show a small growth in Earnings Per Share. The EPS will grow by 2.47% on average per year.
The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y3.9%
EPS Next 2Y2.87%
EPS Next 3Y3.36%
EPS Next 5Y2.47%
Revenue Next Year3.15%
Revenue Next 2Y3.21%
Revenue Next 3Y3.35%
Revenue Next 5Y3.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.08 indicates a correct valuation of 5ZM.
5ZM's Price/Earnings ratio is rather cheap when compared to the industry. 5ZM is cheaper than 92.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, 5ZM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.49, the valuation of 5ZM can be described as correct.
86.41% of the companies in the same industry are more expensive than 5ZM, based on the Price/Forward Earnings ratio.
5ZM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 5ZM indicates a rather cheap valuation: 5ZM is cheaper than 80.58% of the companies listed in the same industry.
86.41% of the companies in the same industry are more expensive than 5ZM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.03 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
5ZM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)0.19
EPS Next 2Y2.87%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (6/19/2025, 7:00:00 PM)
67.44
-0.5 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap20.40B
Revenue(TTM)4.70B
Net Income(TTM)1.05B
Analysts72.2
Price Target80.81 (19.83%)
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 Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.67%
Min EPS beat(2)5.11%
Max EPS beat(2)6.23%
EPS beat(4)4
Avg EPS beat(4)6.17%
Min EPS beat(4)2.2%
Max EPS beat(4)11.15%
EPS beat(8)8
Avg EPS beat(8)11.5%
EPS beat(12)12
Avg EPS beat(12)15.41%
EPS beat(16)15
Avg EPS beat(16)14.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-2.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.79%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.94%
Revenue beat(16)1
Avg Revenue beat(16)-1.66%
PT rev (1m)0.09%
PT rev (3m)-9.02%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)1.74%
EPS NY rev (1m)3.07%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.49 | ||
| P/S | 5.08 | ||
| P/FCF | 14.03 | ||
| P/OCF | 12.93 | ||
| P/B | 2.68 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)4.79
EY7.1%
EPS(NY)5
Fwd EY7.41%
FCF(TTM)4.81
FCFY7.13%
OCF(TTM)5.21
OCFY7.73%
SpS13.27
BVpS25.14
TBVpS24.12
PEG (NY)3.61
PEG (5Y)0.19
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 11.78% | ||
| ROCE | 9.41% | ||
| ROIC | 7.22% | ||
| ROICexc | 51.78% | ||
| ROICexgc | 72.67% | ||
| OM | 18.13% | ||
| PM (TTM) | 22.31% | ||
| GM | 75.85% | ||
| FCFM | 36.23% |
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 | 109.66% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 187.8% | ||
| Profit Quality | 162.36% | ||
| Current Ratio | 4.57 | ||
| Quick Ratio | 4.57 | ||
| Altman-Z | 8.94 |
F-Score7
WACC8.93%
ROIC/WACC0.81
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)3.89%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%5.93%
EPS Next Y3.9%
EPS Next 2Y2.87%
EPS Next 3Y3.36%
EPS Next 5Y2.47%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%2.93%
Revenue Next Year3.15%
Revenue Next 2Y3.21%
Revenue Next 3Y3.35%
Revenue Next 5Y3.06%
EBIT growth 1Y18.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year10.48%
EBIT Next 3Y5.55%
EBIT Next 5Y4.97%
FCF growth 1Y58.52%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y56.13%
OCF growth 3Y6.61%
OCF growth 5Y66.53%
ZOOM COMMUNICATIONS INC / 5ZM.DE FAQ
What is the fundamental rating for 5ZM stock?
ChartMill assigns a fundamental rating of 7 / 10 to 5ZM.DE.
Can you provide the valuation status for ZOOM COMMUNICATIONS INC?
ChartMill assigns a valuation rating of 6 / 10 to ZOOM COMMUNICATIONS INC (5ZM.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ZOOM COMMUNICATIONS INC?
ZOOM COMMUNICATIONS INC (5ZM.DE) has a profitability rating of 8 / 10.
How financially healthy is ZOOM COMMUNICATIONS INC?
The financial health rating of ZOOM COMMUNICATIONS INC (5ZM.DE) is 9 / 10.
What is the expected EPS growth for ZOOM COMMUNICATIONS INC (5ZM.DE) stock?
The Earnings per Share (EPS) of ZOOM COMMUNICATIONS INC (5ZM.DE) is expected to grow by 3.9% in the next year.