ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
FRA:5ZM - Deutsche Boerse Ag - US98980L1017 - Common Stock - Currency: EUR
5ZM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 102 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 is not valued too expensively and it also shows a decent growth rate. This makes 5ZM very considerable for quality investing!
1. Profitability
1.1 Basic Checks
5ZM had positive earnings in the past year.
In the past year 5ZM had a positive cash flow from operations.
In the past 5 years 5ZM has always been profitable.
5ZM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 5ZM (9.57%) is better than 87.38% of its industry peers.
The Return On Equity of 5ZM (11.78%) is better than 68.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.22%, 5ZM is in the better half of the industry, outperforming 66.02% of the companies in the same industry.
5ZM had an Average Return On Invested Capital over the past 3 years of 5.31%. This is significantly below the industry average of 10.45%.
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
With an excellent Profit Margin value of 22.31%, 5ZM belongs to the best of the industry, outperforming 87.38% of the companies in the same industry.
In the last couple of years the Profit Margin of 5ZM has grown nicely.
5ZM has a better Operating Margin (18.13%) than 73.79% of its industry peers.
5ZM's Operating Margin has improved in the last couple of years.
5ZM's Gross Margin of 75.85% is fine compared to the rest of the industry. 5ZM outperforms 60.19% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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
An Altman-Z score of 9.00 indicates that 5ZM is not in any danger for bankruptcy at the moment.
5ZM has a Altman-Z score of 9.00. This is amongst the best in the industry. 5ZM outperforms 86.41% of its industry peers.
5ZM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9 |
ROIC/WACC0.66
WACC10.95%
2.3 Liquidity
A Current Ratio of 4.57 indicates that 5ZM has no problem at all paying its short term obligations.
5ZM's Current ratio of 4.57 is amongst the best of the industry. 5ZM outperforms 90.29% 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's Quick ratio of 4.57 is amongst the best of the industry. 5ZM outperforms 90.29% 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.
5ZM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
The Revenue has been growing by 49.60% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 0.09% on average over the next years.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y0.8%
EPS Next 2Y1.36%
EPS Next 3Y2.16%
EPS Next 5Y0.09%
Revenue Next Year2.73%
Revenue Next 2Y3.05%
Revenue Next 3Y3.3%
Revenue Next 5Y2.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
5ZM is valuated correctly with a Price/Earnings ratio of 14.19.
Compared to the rest of the industry, the Price/Earnings ratio of 5ZM indicates a rather cheap valuation: 5ZM is cheaper than 92.23% of the companies listed in the same industry.
5ZM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.02, which indicates a correct valuation of 5ZM.
5ZM's Price/Forward Earnings ratio is rather cheap when compared to the industry. 5ZM is cheaper than 85.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, 5ZM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 5ZM is valued a bit cheaper than the industry average as 78.64% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 5ZM indicates a rather cheap valuation: 5ZM is cheaper than 87.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 5ZM does not grow enough to justify the current Price/Earnings ratio.
5ZM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)17.63
PEG (5Y)0.19
EPS Next 2Y1.36%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
No dividends for 5ZM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (5/29/2025, 7:00:00 PM)
70.24
-0.51 (-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 Cap21.25B
Analysts72.2
Price Target80.74 (14.95%)
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)2.44%
PT rev (3m)-9.11%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 14.02 | ||
| P/S | 5.13 | ||
| P/FCF | 14.15 | ||
| P/OCF | 13.05 | ||
| P/B | 2.71 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)4.95
EY7.05%
EPS(NY)5.01
Fwd EY7.13%
FCF(TTM)4.96
FCFY7.06%
OCF(TTM)5.38
OCFY7.66%
SpS13.7
BVpS25.95
TBVpS25.05
PEG (NY)17.63
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 11.78% | ||
| ROCE | 9.41% | ||
| ROIC | 7.22% | ||
| ROICexc | 51.78% | ||
| ROICexgc | 68.45% | ||
| 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%
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 Turnover0.43
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 | 9 |
F-Score7
WACC10.95%
ROIC/WACC0.66
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 Y0.8%
EPS Next 2Y1.36%
EPS Next 3Y2.16%
EPS Next 5Y0.09%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%2.93%
Revenue Next Year2.73%
Revenue Next 2Y3.05%
Revenue Next 3Y3.3%
Revenue Next 5Y2.81%
EBIT growth 1Y18.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year10.48%
EBIT Next 3Y4.76%
EBIT Next 5Y3.11%
FCF growth 1Y58.52%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y56.13%
OCF growth 3Y6.61%
OCF growth 5Y66.53%