89.99 USD
+0.17 (+0.19%)
89.91 USD
-0.08 (-0.09%)
We assign a fundamental rating of 7 out of 10 to ZM. ZM was compared to 278 industry peers in the Software industry. ZM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ZM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ZM a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ZM was profitable.
In the past year ZM had a positive cash flow from operations.
ZM had positive earnings in each of the past 5 years.
ZM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ZM has a Return On Assets of 13.99%. This is amongst the best in the industry. ZM outperforms 91.73% of its industry peers.
ZM has a better Return On Equity (17.16%) than 85.61% of its industry peers.
With an excellent Return On Invested Capital value of 9.08%, ZM belongs to the best of the industry, outperforming 81.65% of the companies in the same industry.
ZM had an Average Return On Invested Capital over the past 3 years of 5.31%. This is significantly below the industry average of 10.78%.
The last Return On Invested Capital (9.08%) for ZM 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
The Profit Margin of ZM (33.17%) is better than 92.45% of its industry peers.
ZM's Profit Margin has improved in the last couple of years.
The Operating Margin of ZM (23.24%) is better than 88.85% of its industry peers.
In the last couple of years the Operating Margin of ZM has grown nicely.
ZM has a better Gross Margin (76.89%) than 71.94% of its industry peers.
ZM's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZM is destroying value.
The number of shares outstanding for ZM has been reduced compared to 1 year ago.
The number of shares outstanding for ZM has been increased compared to 5 years ago.
ZM 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 9.67 indicates that ZM is not in any danger for bankruptcy at the moment.
ZM has a better Altman-Z score (9.67) than 86.69% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.67 |
ROIC/WACC0.82
WACC11.02%
2.3 Liquidity
ZM has a Current Ratio of 4.45. This indicates that ZM is financially healthy and has no problem in meeting its short term obligations.
ZM's Current ratio of 4.45 is amongst the best of the industry. ZM outperforms 85.61% of its industry peers.
A Quick Ratio of 4.45 indicates that ZM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.45, ZM belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
| 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, ZM shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.67% on average per year.
Looking at the last year, ZM shows a small growth in Revenue. The Revenue has grown by 3.85% in the last year.
ZM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.60% yearly.
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
Based on estimates for the next years, ZM will show a small growth in Earnings Per Share. The EPS will grow by 3.61% on average per year.
Based on estimates for the next years, ZM will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y12.72%
EPS Next 2Y6.17%
EPS Next 3Y5.1%
EPS Next 5Y3.61%
Revenue Next Year4.21%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.67%
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
ZM is valuated correctly with a Price/Earnings ratio of 15.28.
Compared to the rest of the industry, the Price/Earnings ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 81.65% of the companies listed in the same industry.
ZM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
With a Price/Forward Earnings ratio of 14.44, ZM is valued correctly.
Based on the Price/Forward Earnings ratio, ZM is valued cheaply inside the industry as 82.37% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ZM to the average of the S&P500 Index (24.01), we can say ZM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZM is valued cheaply inside the industry as 91.01% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 88.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.31 | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
ZM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ZM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)0.21
EPS Next 2Y6.17%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
No dividends for ZM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
89.99
+0.17 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change4.62%
Ins Owners0.21%
Ins Owner Change0.78%
Market Cap26.65B
Revenue(TTM)4.81B
Net Income(TTM)1.59B
Analysts73.33
Price Target96.51 (7.25%)
Short Float %2.16%
Short Ratio1.96
Dividend
| Industry Rank | Sector 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)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)1.99%
PT rev (3m)3.24%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)3.04%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 14.44 | ||
| P/S | 5.54 | ||
| P/FCF | 13.31 | ||
| P/OCF | 12.94 | ||
| P/B | 2.87 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)5.89
EY6.55%
EPS(NY)6.23
Fwd EY6.93%
FCF(TTM)6.76
FCFY7.51%
OCF(TTM)6.95
OCFY7.73%
SpS16.23
BVpS31.36
TBVpS30.33
PEG (NY)1.2
PEG (5Y)0.21
Graham Number64.47
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 | 9.67 |
F-Score7
WACC11.02%
ROIC/WACC0.82
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 Y12.72%
EPS Next 2Y6.17%
EPS Next 3Y5.1%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
Revenue Next Year4.21%
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 / ZM 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 for 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.
How financially healthy is ZOOM COMMUNICATIONS INC?
The financial health rating of ZOOM COMMUNICATIONS INC (ZM) is 9 / 10.