ZOOM COMMUNICATIONS INC (ZM) Stock Fundamental Analysis
USA - NASDAQ:ZM - US98980L1017 - Common Stock
84.89 USD
-0.28 (-0.33%)
84.89 USD
0 (0%)
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!
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.
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 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
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.32 |
ROIC/WACC0.76
WACC11%
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 13.94 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 9.91 |
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%
5. Dividend
5.1 Amount
No dividends for ZM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.89
-0.28 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
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 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)0.67%
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 Rank | Sector 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 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 | 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.