ZOOM COMMUNICATIONS INC (ZM) Fundamental Analysis & Valuation

NASDAQ:ZM • US98980L1017

Current stock price

82.5503 USD
-0.25 (-0.3%)
Last:

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.
  • In the past year ZM had a positive cash flow from operations.
  • ZM had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ZM had a positive operating cash flow.
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 better Return On Assets (15.89%) than 91.51% of its industry peers.
  • The Return On Equity of ZM (19.37%) is better than 85.24% of its industry peers.
  • The Return On Invested Capital of ZM (8.90%) is better than 82.29% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ZM is below the industry average of 10.91%.
  • 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 95.94% of its industry peers.
  • In the last couple of years the Profit Margin of ZM has grown nicely.
  • The Operating Margin of ZM (23.45%) is better than 89.67% of its industry peers.
  • ZM's Operating Margin has declined in the last couple of years.
  • ZM's Gross Margin of 77.02% is fine compared to the rest of the industry. ZM outperforms 70.85% of its industry peers.
  • In the last couple of years the Gross Margin of ZM has grown nicely.
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.
  • ZM has more shares outstanding than it did 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 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 8.86. This indicates that ZM is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.86, ZM belongs to the best of the industry, outperforming 89.30% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.86
ROIC/WACC0.85
WACC10.48%
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.
  • With an excellent Current ratio value of 4.33, ZM belongs to the best of the industry, outperforming 81.92% 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 81.92% 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.
  • ZM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
  • The Revenue has been growing by 12.92% on average over the past years. This is quite good.
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 Y2.18%
EPS Next 2Y3.37%
EPS Next 3Y3.86%
EPS Next 5Y-1.28%
Revenue Next Year4.44%
Revenue Next 2Y4.2%
Revenue Next 3Y4.05%
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

6

4. ZM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.94, 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 80.81% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ZM to the average of the S&P500 Index (27.18), we can say ZM is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 13.65, which indicates a correct valuation of ZM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZM indicates a somewhat cheap valuation: ZM is cheaper than 75.28% of the companies listed in the same industry.
  • ZM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.96.
Industry RankSector Rank
PE 13.94
Fwd PE 13.65
ZM Price Earnings VS Forward Price EarningsZM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • ZM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZM is cheaper than 90.41% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ZM is valued cheaply inside the industry as 83.03% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 12.65
EV/EBITDA 7.88
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.
  • ZM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.39
PEG (5Y)1.14
EPS Next 2Y3.37%
EPS Next 3Y3.86%

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%

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Find the best dividend stocksShow peers with best dividend

ZM Fundamentals: All Metrics, Ratios and Statistics

ZOOM COMMUNICATIONS INC

NASDAQ:ZM (4/14/2026, 1:46:47 PM)

82.5503

-0.25 (-0.3%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners79.53%
Inst Owner Change-0.02%
Ins Owners0.21%
Ins Owner Change-0.29%
Market Cap24.33B
Revenue(TTM)4.87B
Net Income(TTM)1.90B
Analysts75.38
Price Target99.48 (20.51%)
Short Float %2.13%
Short Ratio1.28
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)-0.02%
PT rev (3m)3.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 13.94
Fwd PE 13.65
P/S 5
P/FCF 12.65
P/OCF 12.23
P/B 2.48
P/tB 2.61
EV/EBITDA 7.88
EPS(TTM)5.92
EY7.17%
EPS(NY)6.05
Fwd EY7.33%
FCF(TTM)6.53
FCFY7.91%
OCF(TTM)6.75
OCFY8.18%
SpS16.52
BVpS33.29
TBVpS31.69
PEG (NY)6.39
PEG (5Y)1.14
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 8.86
F-Score7
WACC10.48%
ROIC/WACC0.85
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 Y2.18%
EPS Next 2Y3.37%
EPS Next 3Y3.86%
EPS Next 5Y-1.28%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y3.49%
Revenue growth 5Y12.92%
Sales Q2Q%5.31%
Revenue Next Year4.44%
Revenue Next 2Y4.2%
Revenue Next 3Y4.05%
Revenue Next 5Y3.24%
EBIT growth 1Y40.37%
EBIT growth 3Y65.16%
EBIT growth 5Y10.55%
EBIT Next Year11.6%
EBIT Next 3Y6.87%
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 6 / 10 to ZOOM COMMUNICATIONS INC (ZM). This can be considered as Fairly Valued.


How profitable is ZOOM COMMUNICATIONS INC (ZM) stock?

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


Can you provide the expected EPS growth for ZM stock?

The Earnings per Share (EPS) of ZOOM COMMUNICATIONS INC (ZM) is expected to grow by 2.18% in the next year.