80.96 USD
-0.56 (-0.69%)
80.96 USD
0 (0%)
Taking everything into account, ZM scores 7 out of 10 in our fundamental rating. ZM was compared to 276 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ZM. With these ratings, ZM could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- ZM had positive earnings in the past year.
- In the past year ZM had a positive cash flow from operations.
- Each year in the past 5 years ZM has been profitable.
- Each year in the past 5 years ZM had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ZM (13.99%) is better than 91.67% of its industry peers.
- The Return On Equity of ZM (17.16%) is better than 85.14% of its industry peers.
- With an excellent Return On Invested Capital value of 9.08%, ZM belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ZM 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
- ZM's Profit Margin of 33.17% is amongst the best of the industry. ZM outperforms 91.30% 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 88.77% of its industry peers.
- In the last couple of years the Operating Margin of ZM has grown nicely.
- With a decent Gross Margin value of 76.89%, ZM is doing good in the industry, outperforming 71.74% of the companies in the same industry.
- In the last couple of years the Gross Margin of ZM 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
- ZM 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 ZM has been reduced compared to 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.
2.2 Solvency
- ZM has an Altman-Z score of 8.96. This indicates that ZM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ZM (8.96) is better than 87.68% 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 | 8.96 |
ROIC/WACC0.82
WACC11.06%
2.3 Liquidity
- A Current Ratio of 4.45 indicates that ZM has no problem at all paying its short term obligations.
- ZM has a Current ratio of 4.45. This is amongst the best in the industry. ZM outperforms 84.78% of its industry peers.
- ZM has a Quick Ratio of 4.45. This indicates that ZM is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 4.45, ZM belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 |
3. Growth
3.1 Past
- ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.32%.
- 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.
- ZM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.85%.
- 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 4.04% on average per year.
- Based on estimates for the next years, ZM will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y12.72%
EPS Next 2Y6.17%
EPS Next 3Y5.1%
EPS Next 5Y4.04%
Revenue Next Year4.21%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.88%
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
- Based on the Price/Earnings ratio of 13.75, the valuation of ZM can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 83.70% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, ZM is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 12.99, the valuation of ZM can be described as correct.
- 82.97% of the companies in the same industry are more expensive than ZM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ZM to the average of the S&P500 Index (24.26), we can say ZM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 92.03% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ZM is valued cheaper than 89.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
- The 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)1.08
PEG (5Y)0.19
EPS Next 2Y6.17%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
- ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
80.96
-0.56 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-24 2025-11-24/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners77%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change0.55%
Market Cap23.97B
Revenue(TTM)4.81B
Net Income(TTM)1.59B
Analysts74
Price Target96.51 (19.21%)
Short Float %2.53%
Short Ratio2.37
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)13.65%
EPS beat(16)16
Avg EPS beat(16)14.23%
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)-1.6%
Revenue beat(16)0
Avg Revenue beat(16)-1.86%
PT rev (1m)0.46%
PT rev (3m)2.56%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.99 | ||
| P/S | 4.99 | ||
| P/FCF | 11.98 | ||
| P/OCF | 11.64 | ||
| P/B | 2.58 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)5.89
EY7.28%
EPS(NY)6.23
Fwd EY7.7%
FCF(TTM)6.76
FCFY8.35%
OCF(TTM)6.95
OCFY8.59%
SpS16.23
BVpS31.36
TBVpS30.33
PEG (NY)1.08
PEG (5Y)0.19
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 | 8.96 |
F-Score7
WACC11.06%
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 5Y4.04%
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 5Y3.88%
EBIT growth 1Y47.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.78%
EBIT Next Year15.18%
EBIT Next 3Y6.4%
EBIT Next 5Y6.5%
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 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 13.75 and the Price/Book (PB) ratio is 2.58.
How financially healthy is ZOOM COMMUNICATIONS INC?
The financial health rating of ZOOM COMMUNICATIONS INC (ZM) is 9 / 10.