ZOOM COMMUNICATIONS INC (ZM) Fundamental Analysis & Valuation

NASDAQ:ZM • US98980L1017

Current stock price

75.99 USD
+1.03 (+1.37%)
At close:
77 USD
+1.01 (+1.33%)
After Hours:

This ZM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ZM Profitability Analysis

1.1 Basic Checks

  • In the past year ZM was profitable.
  • ZM had a positive operating cash flow in the past year.
  • In the past 5 years ZM has always been profitable.
  • In the past 5 years ZM always reported a positive cash flow from operatings.
ZM Yearly Net Income VS EBIT VS OCF VS FCFZM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M 1B 1.5B

1.2 Ratios

  • ZM has a Return On Assets of 15.89%. This is amongst the best in the industry. ZM outperforms 91.70% of its industry peers.
  • ZM has a better Return On Equity (19.37%) than 86.28% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.90%, ZM belongs to the top of the industry, outperforming 83.03% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ZM is below the industry average of 10.87%.
  • The last Return On Invested Capital (8.90%) for ZM is above the 3 year average (7.25%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 15.89%
ROE 19.37%
ROIC 8.9%
ROA(3y)10.5%
ROA(5y)10.2%
ROE(3y)12.88%
ROE(5y)12.82%
ROIC(3y)7.25%
ROIC(5y)7.71%
ZM Yearly ROA, ROE, ROICZM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5 -5 10 15 20

1.3 Margins

  • ZM has a Profit Margin of 39.03%. This is amongst the best in the industry. ZM outperforms 94.58% of its industry peers.
  • ZM's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 23.45%, ZM belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ZM has declined.
  • ZM has a Gross Margin of 77.02%. This is in the better half of the industry: ZM outperforms 71.48% of its industry peers.
  • ZM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 23.45%
PM (TTM) 39.03%
GM 77.02%
OM growth 3Y59.59%
OM growth 5Y-2.1%
PM growth 3Y154.75%
PM growth 5Y9.03%
GM growth 3Y0.91%
GM growth 5Y2.22%
ZM Yearly Profit, Operating, Gross MarginsZM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 -20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. ZM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZM is destroying value.
  • ZM has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ZM has more shares outstanding
  • There is no outstanding debt for ZM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ZM Yearly Shares OutstandingZM Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
ZM Yearly Total Debt VS Total AssetsZM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B

2.2 Solvency

  • ZM has an Altman-Z score of 8.22. This indicates that ZM is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.22, ZM belongs to the best of the industry, outperforming 87.00% of the companies in the same industry.
  • There is no outstanding debt for ZM. 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.22
ROIC/WACC0.82
WACC10.79%
ZM Yearly LT Debt VS Equity VS FCFZM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

2.3 Liquidity

  • ZM has a Current Ratio of 4.33. This indicates that ZM is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 4.33, ZM belongs to the top of the industry, outperforming 81.95% of the companies in the same industry.
  • A Quick Ratio of 4.33 indicates that ZM has no problem at all paying its short term obligations.
  • The Quick ratio of ZM (4.33) is better than 81.95% of its industry peers.
Industry RankSector Rank
Current Ratio 4.33
Quick Ratio 4.33
ZM Yearly Current Assets VS Current LiabilitesZM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ZM Growth Analysis

3.1 Past

  • ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.05%.
  • Measured over the past years, ZM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.20% on average per year.
  • Looking at the last year, ZM shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
  • Measured over the past years, ZM shows a quite strong growth in Revenue. The Revenue has been growing by 12.92% on average per year.
EPS 1Y (TTM)7.05%
EPS 3Y10.65%
EPS 5Y12.2%
EPS Q2Q%2.13%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y3.49%
Revenue growth 5Y12.92%
Sales Q2Q%5.31%

3.2 Future

  • The Earnings Per Share is expected to decrease by -1.28% on average over the next years.
  • The Revenue is expected to grow by 3.24% on average over the next years.
EPS Next Y3.34%
EPS Next 2Y3.54%
EPS Next 3Y3.15%
EPS Next 5Y-1.28%
Revenue Next Year4.2%
Revenue Next 2Y3.99%
Revenue Next 3Y3.95%
Revenue Next 5Y3.24%

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.
ZM Yearly Revenue VS EstimatesZM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2B 4B 6B
ZM Yearly EPS VS EstimatesZM Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2 4 6

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Find the best growth stocksShow best growing peers

7

4. ZM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.84, which indicates a correct valuation of ZM.
  • ZM's Price/Earnings ratio is rather cheap when compared to the industry. ZM is cheaper than 85.56% of the companies in the same industry.
  • ZM is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 12.42, ZM is valued correctly.
  • Based on the Price/Forward Earnings ratio, ZM is valued cheaper than 81.23% of the companies in the same industry.
  • ZM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.84
Fwd PE 12.42
ZM Price Earnings VS Forward Price EarningsZM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ZM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZM is cheaper than 94.58% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ZM is valued cheaply inside the industry as 87.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.64
EV/EBITDA 6.06
ZM Per share dataZM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 ZM may justify a higher PE ratio.
PEG (NY)3.84
PEG (5Y)1.05
EPS Next 2Y3.54%
EPS Next 3Y3.15%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ZM Dividend Analysis

5.1 Amount

  • No dividends for ZM!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ZM Fundamentals: All Metrics, Ratios and Statistics

ZOOM COMMUNICATIONS INC

NASDAQ:ZM (3/17/2026, 8:00:02 PM)

After market: 77 +1.01 (+1.33%)

75.99

+1.03 (+1.37%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners78.55%
Inst Owner Change-0.09%
Ins Owners0.21%
Ins Owner Change1.54%
Market Cap22.39B
Revenue(TTM)4.87B
Net Income(TTM)1.90B
Analysts75.9
Price Target99.51 (30.95%)
Short Float %2.4%
Short Ratio1.49
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1
Avg EPS beat(2)-1.64%
Min EPS beat(2)-6.05%
Max EPS beat(2)2.77%
EPS beat(4)3
Avg EPS beat(4)2.89%
Min EPS beat(4)-6.05%
Max EPS beat(4)8.59%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)9.24%
EPS beat(16)15
Avg EPS beat(16)12.77%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)-1.61%
Revenue beat(4)0
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)-1.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.63%
Revenue beat(16)0
Avg Revenue beat(16)-1.93%
PT rev (1m)0.78%
PT rev (3m)3.58%
EPS NQ rev (1m)-2.09%
EPS NQ rev (3m)-2.08%
EPS NY rev (1m)-2.08%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.66%
Valuation
Industry RankSector Rank
PE 12.84
Fwd PE 12.42
P/S 4.6
P/FCF 11.64
P/OCF 11.26
P/B 2.28
P/tB 2.4
EV/EBITDA 6.06
EPS(TTM)5.92
EY7.79%
EPS(NY)6.12
Fwd EY8.05%
FCF(TTM)6.53
FCFY8.59%
OCF(TTM)6.75
OCFY8.88%
SpS16.52
BVpS33.29
TBVpS31.69
PEG (NY)3.84
PEG (5Y)1.05
Graham Number66.59
Profitability
Industry RankSector Rank
ROA 15.89%
ROE 19.37%
ROCE 11.46%
ROIC 8.9%
ROICexc 41.32%
ROICexgc 52.97%
OM 23.45%
PM (TTM) 39.03%
GM 77.02%
FCFM 39.51%
ROA(3y)10.5%
ROA(5y)10.2%
ROE(3y)12.88%
ROE(5y)12.82%
ROIC(3y)7.25%
ROIC(5y)7.71%
ROICexc(3y)43.58%
ROICexc(5y)59.94%
ROICexgc(3y)60.18%
ROICexgc(5y)72.35%
ROCE(3y)9.34%
ROCE(5y)9.93%
ROICexgc growth 3Y29.02%
ROICexgc growth 5YN/A
ROICexc growth 3Y27.08%
ROICexc growth 5YN/A
OM growth 3Y59.59%
OM growth 5Y-2.1%
PM growth 3Y154.75%
PM growth 5Y9.03%
GM growth 3Y0.91%
GM growth 5Y2.22%
F-Score7
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 49.28%
Cap/Sales 1.34%
Interest Coverage 250
Cash Conversion 156.07%
Profit Quality 101.23%
Current Ratio 4.33
Quick Ratio 4.33
Altman-Z 8.22
F-Score7
WACC10.79%
ROIC/WACC0.82
Cap/Depr(3y)94.06%
Cap/Depr(5y)144.83%
Cap/Sales(3y)2.36%
Cap/Sales(5y)2.65%
Profit Quality(3y)170.39%
Profit Quality(5y)350.1%
High Growth Momentum
Growth
EPS 1Y (TTM)7.05%
EPS 3Y10.65%
EPS 5Y12.2%
EPS Q2Q%2.13%
EPS Next Y3.34%
EPS Next 2Y3.54%
EPS Next 3Y3.15%
EPS Next 5Y-1.28%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y3.49%
Revenue growth 5Y12.92%
Sales Q2Q%5.31%
Revenue Next Year4.2%
Revenue Next 2Y3.99%
Revenue Next 3Y3.95%
Revenue Next 5Y3.24%
EBIT growth 1Y40.37%
EBIT growth 3Y65.16%
EBIT growth 5Y10.55%
EBIT Next Year11.45%
EBIT Next 3Y7.04%
EBIT Next 5Y2.22%
FCF growth 1Y6.35%
FCF growth 3Y17.85%
FCF growth 5Y6.78%
OCF growth 1Y2.25%
OCF growth 3Y15.52%
OCF growth 5Y6.22%

ZOOM COMMUNICATIONS INC / ZM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ZOOM COMMUNICATIONS INC (ZM) stock?

ChartMill assigns a fundamental rating of 7 / 10 to ZM.


What is the valuation status of ZOOM COMMUNICATIONS INC (ZM) stock?

ChartMill assigns a valuation rating of 7 / 10 to ZOOM COMMUNICATIONS INC (ZM). This can be considered as Undervalued.


What is the profitability of ZM stock?

ZOOM COMMUNICATIONS INC (ZM) has a profitability rating of 8 / 10.


What are the PE and PB ratios of ZOOM COMMUNICATIONS INC (ZM) stock?

The Price/Earnings (PE) ratio for ZOOM COMMUNICATIONS INC (ZM) is 12.84 and the Price/Book (PB) ratio is 2.28.


How financially healthy is ZOOM COMMUNICATIONS INC?

The financial health rating of ZOOM COMMUNICATIONS INC (ZM) is 9 / 10.