ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:5ZM - US98980L1017 - Common Stock
75.48 EUR
+1.75 (+2.37%)
Overall 5ZM gets a fundamental rating of 7 out of 10. We evaluated 5ZM against 113 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 5ZM a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on 5ZM. These ratings would make 5ZM suitable for value and 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.
Each year in the past 5 years 5ZM has been profitable.
In the past 5 years 5ZM always reported a positive cash flow from operatings.
1.2 Ratios
5ZM has a Return On Assets of 13.99%. This is amongst the best in the industry. 5ZM outperforms 87.93% of its industry peers.
5ZM's Return On Equity of 17.16% is fine compared to the rest of the industry. 5ZM outperforms 74.14% of its industry peers.
5ZM has a better Return On Invested Capital (9.08%) than 65.52% 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 13.33%.
The last Return On Invested Capital (9.08%) for 5ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 17.16% | ||
| ROIC | 9.08% |
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 (33.17%) than 91.38% of its industry peers.
In the last couple of years the Profit Margin of 5ZM has grown nicely.
Looking at the Operating Margin, with a value of 23.24%, 5ZM belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
In the last couple of years the Operating Margin of 5ZM has grown nicely.
Looking at the Gross Margin, with a value of 76.89%, 5ZM is in line with its industry, outperforming 59.48% of the companies in the same industry.
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 | 23.24% | ||
| PM (TTM) | 33.17% | ||
| GM | 76.89% |
OM growth 3Y-12.41%
OM growth 5Y53.6%
PM growth 3Y-13.57%
PM growth 5Y44.03%
GM growth 3Y0.67%
GM growth 5Y-1.43%
2. Health
2.1 Basic Checks
5ZM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 5ZM has been reduced compared to 1 year ago.
Compared to 5 years ago, 5ZM has more shares outstanding
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
An Altman-Z score of 9.50 indicates that 5ZM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.50, 5ZM belongs to the top of the industry, outperforming 88.79% 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 | 9.5 |
ROIC/WACC0.83
WACC10.91%
2.3 Liquidity
A Current Ratio of 4.45 indicates that 5ZM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.45, 5ZM belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
5ZM has a Quick Ratio of 4.45. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
5ZM's Quick ratio of 4.45 is amongst the best of the industry. 5ZM outperforms 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.32% 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 3.85%.
Measured over the past years, 5ZM shows a very strong growth in Revenue. The Revenue has been growing by 49.60% on average per year.
EPS 1Y (TTM)6.32%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.14%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
3.2 Future
5ZM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.61% yearly.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y12.77%
EPS Next 2Y6.23%
EPS Next 3Y5.15%
EPS Next 5Y3.61%
Revenue Next Year4.19%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.67%
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
5ZM is valuated correctly with a Price/Earnings ratio of 14.92.
Based on the Price/Earnings ratio, 5ZM is valued cheaply inside the industry as 88.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.49, 5ZM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.09, 5ZM is valued correctly.
Based on the Price/Forward Earnings ratio, 5ZM is valued cheaper than 87.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. 5ZM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 14.09 |
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 82.76% of the companies listed in the same industry.
87.93% 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 | 13 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
5ZM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 5ZM may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)0.2
EPS Next 2Y6.23%
EPS Next 3Y5.15%
5. Dividend
5.1 Amount
5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (12/5/2025, 7:00:00 PM)
75.48
+1.75 (+2.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap22.35B
Revenue(TTM)4.81B
Net Income(TTM)1.59B
Analysts73.33
Price Target79.71 (5.6%)
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)5.55%
Min EPS beat(2)2.51%
Max EPS beat(2)8.59%
EPS beat(4)4
Avg EPS beat(4)5.61%
Min EPS beat(4)2.51%
Max EPS beat(4)8.59%
EPS beat(8)8
Avg EPS beat(8)8.11%
EPS beat(12)12
Avg EPS beat(12)13.68%
EPS beat(16)16
Avg EPS beat(16)14.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)0
Avg Revenue beat(16)-1.85%
PT rev (1m)-1.36%
PT rev (3m)-1.36%
EPS NQ rev (1m)5.22%
EPS NQ rev (3m)5.22%
EPS NY rev (1m)8.54%
EPS NY rev (3m)8.54%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 14.09 | ||
| P/S | 5.42 | ||
| P/FCF | 13 | ||
| P/OCF | 12.64 | ||
| P/B | 2.8 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)5.06
EY6.7%
EPS(NY)5.36
Fwd EY7.1%
FCF(TTM)5.8
FCFY7.69%
OCF(TTM)5.97
OCFY7.91%
SpS13.94
BVpS26.93
TBVpS26.04
PEG (NY)1.17
PEG (5Y)0.2
Graham Number55.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 17.16% | ||
| ROCE | 11.84% | ||
| ROIC | 9.08% | ||
| ROICexc | 57.56% | ||
| ROICexgc | 72.53% | ||
| OM | 23.24% | ||
| PM (TTM) | 33.17% | ||
| GM | 76.89% | ||
| FCFM | 41.64% |
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 5Y47.42%
ROICexc growth 3Y-31.14%
ROICexc growth 5Y37.94%
OM growth 3Y-12.41%
OM growth 5Y53.6%
PM growth 3Y-13.57%
PM growth 5Y44.03%
GM growth 3Y0.67%
GM growth 5Y-1.43%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 42.93% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 164.56% | ||
| Profit Quality | 125.56% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 | ||
| Altman-Z | 9.5 |
F-Score7
WACC10.91%
ROIC/WACC0.83
Cap/Depr(3y)124.24%
Cap/Depr(5y)194.45%
Cap/Sales(3y)2.78%
Cap/Sales(5y)3.03%
Profit Quality(3y)514.38%
Profit Quality(5y)371.12%
High Growth Momentum
Growth
EPS 1Y (TTM)6.32%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.14%
EPS Next Y12.77%
EPS Next 2Y6.23%
EPS Next 3Y5.15%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
Revenue Next Year4.19%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.67%
EBIT growth 1Y47.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.78%
EBIT Next Year15.18%
EBIT Next 3Y6.4%
EBIT Next 5Y5.98%
FCF growth 1Y51.41%
FCF growth 3Y7.41%
FCF growth 5Y73.92%
OCF growth 1Y41.11%
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 7 / 10 to ZOOM COMMUNICATIONS INC (5ZM.DE). This can be considered as Undervalued.
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 12.77% in the next year.