ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
FRA:5ZM - Deutsche Boerse Ag - US98980L1017 - Common Stock - Currency: EUR
Taking everything into account, 5ZM scores 7 out of 10 in our fundamental rating. 5ZM was compared to 97 industry peers in the Software industry. 5ZM gets an excellent profitability rating and is at the same time showing great financial health properties. 5ZM has a decent growth rate and is not valued too expensively. These ratings could make 5ZM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
5ZM had positive earnings in the past year.
5ZM had a positive operating cash flow in the past year.
Each year in the past 5 years 5ZM has been profitable.
5ZM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
5ZM has a Return On Assets of 9.19%. This is amongst the best in the industry. 5ZM outperforms 83.51% of its industry peers.
With a decent Return On Equity value of 11.31%, 5ZM is doing good in the industry, outperforming 65.98% of the companies in the same industry.
5ZM has a Return On Invested Capital of 6.87%. This is in the better half of the industry: 5ZM outperforms 65.98% of its industry peers.
5ZM had an Average Return On Invested Capital over the past 3 years of 5.31%. This is significantly below the industry average of 10.77%.
The last Return On Invested Capital (6.87%) for 5ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 11.31% | ||
| ROIC | 6.87% |
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 (21.65%) than 85.57% of its industry peers.
5ZM's Profit Margin has improved in the last couple of years.
The Operating Margin of 5ZM (17.43%) is better than 76.29% of its industry peers.
In the last couple of years the Operating Margin of 5ZM has grown nicely.
5ZM's Gross Margin of 75.79% is fine compared to the rest of the industry. 5ZM outperforms 60.82% of its industry peers.
In the last couple of years the Gross Margin of 5ZM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.43% | ||
| PM (TTM) | 21.65% | ||
| GM | 75.79% |
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.
The number of shares outstanding for 5ZM has been increased compared to 5 years ago.
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.
2.2 Solvency
5ZM has an Altman-Z score of 8.87. This indicates that 5ZM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.87, 5ZM belongs to the top of the industry, outperforming 87.63% 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 | 8.87 |
ROIC/WACC0.64
WACC10.66%
2.3 Liquidity
A Current Ratio of 4.56 indicates that 5ZM has no problem at all paying its short term obligations.
5ZM has a better Current ratio (4.56) than 89.69% of its industry peers.
A Quick Ratio of 4.56 indicates that 5ZM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.56, 5ZM belongs to the top of the industry, outperforming 89.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 |
3. Growth
3.1 Past
5ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.14%.
The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
Looking at the last year, 5ZM shows a small growth in Revenue. The Revenue has grown by 3.05% 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)6.14%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%3.29%
3.2 Future
5ZM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.09% yearly.
Based on estimates for the next years, 5ZM will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y0.77%
EPS Next 2Y1.34%
EPS Next 3Y2.16%
EPS Next 5Y0.09%
Revenue Next Year2.75%
Revenue Next 2Y3.04%
Revenue Next 3Y3.3%
Revenue Next 5Y2.81%
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.
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
5ZM is valuated correctly with a Price/Earnings ratio of 14.14.
5ZM's Price/Earnings ratio is rather cheap when compared to the industry. 5ZM is cheaper than 91.75% of the companies in the same industry.
5ZM is valuated rather cheaply when we compare the Price/Earnings ratio to 24.12, which is the current average of the S&P500 Index.
5ZM is valuated correctly with a Price/Forward Earnings ratio of 14.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 5ZM indicates a rather cheap valuation: 5ZM is cheaper than 89.69% of the companies listed in the same industry.
5ZM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
5ZM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 5ZM is cheaper than 75.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 5ZM is valued cheaper than 86.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 5ZM may justify a higher PE ratio.
PEG (NY)18.43
PEG (5Y)0.19
EPS Next 2Y1.34%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (5/7/2025, 7:00:00 PM)
68.84
-0.5 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap21.01B
Analysts72.2
Price Target78.82 (14.5%)
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)3.65%
Min EPS beat(2)2.2%
Max EPS beat(2)5.11%
EPS beat(4)4
Avg EPS beat(4)7.03%
Min EPS beat(4)2.2%
Max EPS beat(4)11.15%
EPS beat(8)8
Avg EPS beat(8)12.47%
EPS beat(12)12
Avg EPS beat(12)16.1%
EPS beat(16)15
Avg EPS beat(16)15.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.58%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)2
Avg Revenue beat(16)-1.37%
PT rev (1m)-7.59%
PT rev (3m)-11.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.14 | ||
| Fwd PE | 14.03 | ||
| P/S | 5.12 | ||
| P/FCF | 13.2 | ||
| P/OCF | 12.27 | ||
| P/B | 2.67 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 10.3 |
EPS(TTM)4.87
EY7.07%
EPS(NY)4.91
Fwd EY7.13%
FCF(TTM)5.22
FCFY7.58%
OCF(TTM)5.61
OCFY8.15%
SpS13.46
BVpS25.77
TBVpS24.71
PEG (NY)18.43
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 11.31% | ||
| ROCE | 8.95% | ||
| ROIC | 6.87% | ||
| ROICexc | 48.22% | ||
| ROICexgc | 67.25% | ||
| OM | 17.43% | ||
| PM (TTM) | 21.65% | ||
| GM | 75.79% | ||
| FCFM | 38.77% |
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%
ROICexcg growth 3Y-24.37%
ROICexcg 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.36% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 207.85% | ||
| Profit Quality | 179.04% | ||
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 | ||
| Altman-Z | 8.87 |
F-Score7
WACC10.66%
ROIC/WACC0.64
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)6.14%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%-0.7%
EPS Next Y0.77%
EPS Next 2Y1.34%
EPS Next 3Y2.16%
EPS Next 5Y0.09%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%3.29%
Revenue Next Year2.75%
Revenue Next 2Y3.04%
Revenue Next 3Y3.3%
Revenue Next 5Y2.81%
EBIT growth 1Y24.97%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year9.73%
EBIT Next 3Y5.29%
EBIT Next 5Y3.11%
FCF growth 1Y22.89%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y21.67%
OCF growth 3Y6.61%
OCF growth 5Y66.53%