89.52 USD
-0.72 (-0.8%)
89 USD
-0.52 (-0.58%)
Taking everything into account, ZM scores 7 out of 10 in our fundamental rating. ZM was compared to 280 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. This makes ZM very considerable 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.
ZM had positive earnings in each of the past 5 years.
In the past 5 years ZM always reported a positive cash flow from operatings.
1.2 Ratios
ZM has a Return On Assets of 13.99%. This is amongst the best in the industry. ZM outperforms 91.43% of its industry peers.
Looking at the Return On Equity, with a value of 17.16%, ZM belongs to the top of the industry, outperforming 85.36% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.08%, ZM belongs to the best of the industry, outperforming 81.43% 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 10.98%.
The 3 year average ROIC (5.31%) for ZM is below the current ROIC(9.08%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 33.17%, ZM belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
ZM's Profit Margin has improved in the last couple of years.
ZM's Operating Margin of 23.24% is amongst the best of the industry. ZM outperforms 88.93% of its industry peers.
ZM's Operating Margin has improved in the last couple of years.
The Gross Margin of ZM (76.89%) is better than 72.14% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ZM is destroying value.
Compared to 1 year ago, ZM has less shares outstanding
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 9.69 indicates that ZM is not in any danger for bankruptcy at the moment.
ZM's Altman-Z score of 9.69 is amongst the best of the industry. ZM outperforms 85.71% 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 | 9.69 |
ROIC/WACC0.83
WACC10.98%
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 better Current ratio (4.45) than 85.36% 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 85.36% 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.
The Revenue has been growing slightly by 3.85% in the past year.
Measured over the past years, ZM shows a very strong growth in Revenue. The Revenue has been growing by 49.60% on average per year.
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.
ZM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y12.77%
EPS Next 2Y6.23%
EPS Next 3Y5.15%
EPS Next 5Y3.61%
Revenue Next Year4.19%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
ZM is valuated correctly with a Price/Earnings ratio of 15.20.
Based on the Price/Earnings ratio, ZM is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
ZM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 14.35, the valuation of ZM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 82.86% of the companies listed in the same industry.
ZM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 14.35 |
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 90.36% of the companies listed in the same industry.
ZM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZM is cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 9.63 |
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)1.19
PEG (5Y)0.21
EPS Next 2Y6.23%
EPS Next 3Y5.15%
5. Dividend
5.1 Amount
ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.52
-0.72 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change4.61%
Ins Owners0.21%
Ins Owner Change2.33%
Market Cap26.51B
Revenue(TTM)4.81B
Net Income(TTM)1.59B
Analysts73.33
Price Target96.07 (7.32%)
Short Float %2.56%
Short Ratio2.36
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)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)1.53%
PT rev (3m)2.77%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)3.09%
EPS NY rev (3m)8.42%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 14.35 | ||
| P/S | 5.52 | ||
| P/FCF | 13.24 | ||
| P/OCF | 12.87 | ||
| P/B | 2.85 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)5.89
EY6.58%
EPS(NY)6.24
Fwd EY6.97%
FCF(TTM)6.76
FCFY7.55%
OCF(TTM)6.95
OCFY7.77%
SpS16.23
BVpS31.36
TBVpS30.33
PEG (NY)1.19
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 | 9.69 |
F-Score7
WACC10.98%
ROIC/WACC0.83
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 Y12.77%
EPS Next 2Y6.23%
EPS Next 3Y5.15%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
Revenue Next Year4.19%
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.