78.63 USD
+0.21 (+0.27%)
79.1052 USD
+0.48 (+0.6%)
We assign a fundamental rating of 7 out of 10 to ZM. ZM was compared to 281 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. These ratings could make ZM a good candidate for value and quality investing.
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.
In the past 5 years ZM always reported a positive cash flow from operatings.
1.2 Ratios
ZM has a Return On Assets of 10.76%. This is amongst the best in the industry. ZM outperforms 86.48% of its industry peers.
ZM has a Return On Equity of 13.27%. This is in the better half of the industry: ZM outperforms 77.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.34%, ZM is in the better half of the industry, outperforming 79.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ZM is significantly below the industry average of 12.04%.
The last Return On Invested Capital (8.34%) for ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
ZM has a Profit Margin of 24.99%. This is amongst the best in the industry. ZM outperforms 88.26% of its industry peers.
ZM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.81%, ZM belongs to the best of the industry, outperforming 86.83% of the companies in the same industry.
In the last couple of years the Operating Margin of ZM has grown nicely.
With a decent Gross Margin value of 76.38%, ZM is doing good in the industry, outperforming 71.53% of the companies in the same industry.
ZM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZM is destroying value.
The number of shares outstanding for ZM has been reduced compared to 1 year ago.
ZM has more shares outstanding than it did 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
ZM has an Altman-Z score of 8.76. This indicates that ZM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.76, ZM belongs to the top of the industry, outperforming 86.12% of the companies in the same industry.
ZM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.76 |
ROIC/WACC0.76
WACC10.98%
2.3 Liquidity
A Current Ratio of 4.45 indicates that ZM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.45, ZM belongs to the best of the industry, outperforming 85.77% 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's Quick ratio of 4.45 is amongst the best of the industry. ZM outperforms 85.77% of its industry peers.
| 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 5.50%.
The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.63% in the past year.
The Revenue has been growing by 49.60% on average over the past years. This is a very strong growth!
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
ZM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.61% yearly.
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 Y9.39%
EPS Next 2Y4.93%
EPS Next 3Y4.81%
EPS Next 5Y3.61%
Revenue Next Year3.71%
Revenue Next 2Y3.53%
Revenue Next 3Y3.57%
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.
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
Based on the Price/Earnings ratio of 13.67, the valuation of ZM can be described as correct.
ZM's Price/Earnings ratio is rather cheap when compared to the industry. ZM is cheaper than 82.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. ZM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.91 indicates a correct valuation of ZM.
ZM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ZM is cheaper than 82.56% of the companies in the same industry.
ZM is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZM is valued cheaper than 90.75% of the companies in the same industry.
88.61% of the companies in the same industry are more expensive than ZM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 8.17 |
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)1.46
PEG (5Y)0.19
EPS Next 2Y4.93%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
No dividends for ZM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
78.63
+0.21 (+0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.7%
Inst Owner Change-76.98%
Ins Owners0.2%
Ins Owner Change2.1%
Market Cap23.53B
Revenue(TTM)4.75B
Net Income(TTM)1.19B
Analysts73.33
Price Target94.84 (20.62%)
Short Float %2.54%
Short Ratio2.57
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)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)0.78%
PT rev (3m)2.54%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)3.65%
EPS NY rev (1m)0%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.91 | ||
| P/S | 4.95 | ||
| P/FCF | 12.76 | ||
| P/OCF | 12.3 | ||
| P/B | 2.63 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)5.75
EY7.31%
EPS(NY)6.09
Fwd EY7.74%
FCF(TTM)6.16
FCFY7.84%
OCF(TTM)6.39
OCFY8.13%
SpS15.88
BVpS29.9
TBVpS28.7
PEG (NY)1.46
PEG (5Y)0.19
Graham Number62.2
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.76 |
F-Score7
WACC10.98%
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 3Y4.81%
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 3Y3.57%
Revenue Next 5Y3.67%
EBIT growth 1Y33.08%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year12.29%
EBIT Next 3Y6.66%
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.