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ZOOM COMMUNICATIONS INC (ZM) Stock Fundamental Analysis

USA - NASDAQ:ZM - US98980L1017 - Common Stock

84.89 USD
-0.28 (-0.33%)
Last: 10/28/2025, 4:30:54 PM
84.89 USD
0 (0%)
After Hours: 10/28/2025, 4:30:54 PM
Fundamental Rating

7

ZM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ZM 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 ZM. This makes ZM very considerable for value and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

ZM had positive earnings in the past year.
ZM had a positive operating cash flow in the past year.
Each year in the past 5 years ZM has been profitable.
ZM had a positive operating cash flow in each of the past 5 years.
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 0 500M 1B 1.5B

1.2 Ratios

Looking at the Return On Assets, with a value of 10.76%, ZM belongs to the top of the industry, outperforming 87.02% of the companies in the same industry.
ZM has a better Return On Equity (13.27%) than 79.30% of its industry peers.
With a decent Return On Invested Capital value of 8.34%, ZM is doing good in the industry, outperforming 79.65% 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 11.88%.
The 3 year average ROIC (5.31%) for ZM is below the current ROIC(8.34%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.76%
ROE 13.27%
ROIC 8.34%
ROA(3y)5.63%
ROA(5y)9.55%
ROE(3y)6.98%
ROE(5y)12.42%
ROIC(3y)5.31%
ROIC(5y)8.46%
ZM Yearly ROA, ROE, ROICZM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15 20

1.3 Margins

The Profit Margin of ZM (24.99%) is better than 89.47% of its industry peers.
ZM's Profit Margin has improved in the last couple of years.
The Operating Margin of ZM (20.81%) is better than 86.67% of its industry peers.
ZM's Operating Margin has improved in the last couple of years.
ZM has a better Gross Margin (76.38%) than 71.23% of its industry peers.
In the last couple of years the Gross Margin of ZM has remained more or less at the same level.
Industry RankSector Rank
OM 20.81%
PM (TTM) 24.99%
GM 76.38%
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%
ZM Yearly Profit, Operating, Gross MarginsZM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60 80

9

2. Health

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.
The number of shares outstanding for ZM has been increased compared to 5 years ago.
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 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 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 9.32 indicates that ZM is not in any danger for bankruptcy at the moment.
ZM has a better Altman-Z score (9.32) than 83.16% of its industry peers.
ZM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.32
ROIC/WACC0.76
WACC11%
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 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 4.45 indicates that ZM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.45, ZM belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
A Quick Ratio of 4.45 indicates that ZM has no problem at all paying its short term obligations.
ZM has a better Quick ratio (4.45) than 86.32% of its industry peers.
Industry RankSector Rank
Current Ratio 4.45
Quick Ratio 4.45
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 2B 4B 6B 8B

5

3. Growth

3.1 Past

ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.50%.
The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
ZM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.63%.
ZM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.60% yearly.
EPS 1Y (TTM)5.5%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.07%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.71%

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.
ZM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y9.39%
EPS Next 2Y4.93%
EPS Next 3Y4.82%
EPS Next 5Y3.61%
Revenue Next Year3.71%
Revenue Next 2Y3.53%
Revenue Next 3Y3.54%
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.
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 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 2 4 6

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.76, ZM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 85.61% of the companies listed in the same industry.
ZM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.94, which indicates a correct valuation of ZM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 84.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, ZM is valued a bit cheaper.
Industry RankSector Rank
PE 14.76
Fwd PE 13.94
ZM Price Earnings VS Forward Price EarningsZM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

ZM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZM is cheaper than 91.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 90.18% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.77
EV/EBITDA 9.91
ZM Per share dataZM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

ZM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ZM may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)0.2
EPS Next 2Y4.93%
EPS Next 3Y4.82%

0

5. Dividend

5.1 Amount

No dividends for ZM!.
Industry RankSector Rank
Dividend Yield N/A

ZOOM COMMUNICATIONS INC

NASDAQ:ZM (10/28/2025, 4:30:54 PM)

After market: 84.89 0 (0%)

84.89

-0.28 (-0.33%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-21 2025-08-21/amc
Earnings (Next)11-24 2025-11-24/amc
Inst Owners72.7%
Inst Owner Change1.41%
Ins Owners0.2%
Ins Owner Change2.1%
Market Cap25.41B
Revenue(TTM)4.75B
Net Income(TTM)1.19B
Analysts73
Price Target94.1 (10.85%)
Short Float %2.05%
Short Ratio1.66
Dividend
Industry RankSector 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)7.41%
Min EPS beat(2)6.23%
Max EPS beat(2)8.59%
EPS beat(4)4
Avg EPS beat(4)5.53%
Min EPS beat(4)2.2%
Max EPS beat(4)8.59%
EPS beat(8)8
Avg EPS beat(8)9.69%
EPS beat(12)12
Avg EPS beat(12)15.45%
EPS beat(16)15
Avg EPS beat(16)14.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)0
Avg Revenue beat(12)-1.68%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)0.67%
PT rev (3m)1.87%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)3.49%
EPS NY rev (1m)0.02%
EPS NY rev (3m)5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
Industry RankSector Rank
PE 14.76
Fwd PE 13.94
P/S 5.34
P/FCF 13.77
P/OCF 13.28
P/B 2.84
P/tB 2.96
EV/EBITDA 9.91
EPS(TTM)5.75
EY6.77%
EPS(NY)6.09
Fwd EY7.17%
FCF(TTM)6.16
FCFY7.26%
OCF(TTM)6.39
OCFY7.53%
SpS15.88
BVpS29.9
TBVpS28.7
PEG (NY)1.57
PEG (5Y)0.2
Graham Number62.2
Profitability
Industry RankSector Rank
ROA 10.76%
ROE 13.27%
ROCE 10.88%
ROIC 8.34%
ROICexc 57.57%
ROICexgc 79.2%
OM 20.81%
PM (TTM) 24.99%
GM 76.38%
FCFM 38.81%
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 5Y47.41%
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 50.75%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 170.26%
Profit Quality 155.27%
Current Ratio 4.45
Quick Ratio 4.45
Altman-Z 9.32
F-Score7
WACC11%
ROIC/WACC0.76
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)5.5%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.07%
EPS Next Y9.39%
EPS Next 2Y4.93%
EPS Next 3Y4.82%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.71%
Revenue Next Year3.71%
Revenue Next 2Y3.53%
Revenue Next 3Y3.54%
Revenue Next 5Y3.67%
EBIT growth 1Y33.08%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year12.29%
EBIT Next 3Y6.58%
EBIT Next 5Y5.98%
FCF growth 1Y62.69%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y51.66%
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.