ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
FRA:5ZM - Deutsche Boerse Ag - US98980L1017 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 5ZM. 5ZM was compared to 101 industry peers in the Software industry. 5ZM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 5ZM has a correct valuation and a medium growth rate. These ratings could make 5ZM a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year 5ZM was profitable.
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
With an excellent Return On Assets value of 9.57%, 5ZM belongs to the best of the industry, outperforming 87.13% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.78%, 5ZM is in the better half of the industry, outperforming 71.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.22%, 5ZM is in the better half of the industry, outperforming 67.33% 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 11.19%.
The 3 year average ROIC (5.31%) for 5ZM is below the current ROIC(7.22%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 22.31%, 5ZM belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
In the last couple of years the Profit Margin of 5ZM has grown nicely.
5ZM's Operating Margin of 18.13% is fine compared to the rest of the industry. 5ZM outperforms 78.22% of its industry peers.
5ZM's Operating Margin has improved in the last couple of years.
5ZM has a Gross Margin of 75.85%. This is in the better half of the industry: 5ZM outperforms 60.40% 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 | 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.
5ZM has more shares outstanding than it did 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 8.82. This indicates that 5ZM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.82, 5ZM belongs to the best of the industry, outperforming 87.13% 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 | 8.82 |
ROIC/WACC0.8
WACC9.02%
2.3 Liquidity
5ZM has a Current Ratio of 4.57. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
5ZM has a better Current ratio (4.57) than 90.10% of its industry peers.
A Quick Ratio of 4.57 indicates that 5ZM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.57, 5ZM belongs to the best of the industry, outperforming 90.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.57 | ||
| Quick Ratio | 4.57 |
3. Growth
3.1 Past
5ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.89%.
The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
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
5ZM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.56% yearly.
The Revenue is expected to grow by 3.08% on average over the next years.
EPS Next Y3.9%
EPS Next 2Y2.87%
EPS Next 3Y3.44%
EPS Next 5Y2.56%
Revenue Next Year3.15%
Revenue Next 2Y3.21%
Revenue Next 3Y3.29%
Revenue Next 5Y3.08%
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
The Price/Earnings ratio is 13.85, which indicates a correct valuation of 5ZM.
94.06% of the companies in the same industry are more expensive than 5ZM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. 5ZM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.27, the valuation of 5ZM can be described as correct.
Based on the Price/Forward Earnings ratio, 5ZM is valued cheaply inside the industry as 88.12% of the companies are valued more expensively.
5ZM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 5ZM is valued cheaply inside the industry as 80.20% of the companies are valued more expensively.
5ZM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 5ZM is cheaper than 85.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 9.3 |
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.
The excellent profitability rating of 5ZM may justify a higher PE ratio.
PEG (NY)3.55
PEG (5Y)0.19
EPS Next 2Y2.87%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
No dividends for 5ZM!.
| 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
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 | 13.85 | ||
| Fwd PE | 13.27 | ||
| P/S | 5 | ||
| P/FCF | 13.8 | ||
| P/OCF | 12.73 | ||
| P/B | 2.64 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)4.87
EY7.22%
EPS(NY)5.08
Fwd EY7.54%
FCF(TTM)4.89
FCFY7.25%
OCF(TTM)5.3
OCFY7.86%
SpS13.49
BVpS25.55
TBVpS24.51
PEG (NY)3.55
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 | 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%
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 | 8.82 |
F-Score7
WACC9.02%
ROIC/WACC0.8
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 3Y3.44%
EPS Next 5Y2.56%
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 3Y3.29%
Revenue Next 5Y3.08%
EBIT growth 1Y18.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year10.48%
EBIT Next 3Y5.5%
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%