Is NASDAQ:ZM suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ZOOM COMMUNICATIONS INC (NASDAQ:ZM) is suited for quality investing. Investors should of course do their own research, but we spotted ZOOM COMMUNICATIONS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NASDAQ:ZM.

• ZOOM COMMUNICATIONS INC has demonstrated significant revenue growth over the past 5 years, with a 68.78% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 54.73%, ZOOM COMMUNICATIONS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 0.0, ZOOM COMMUNICATIONS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 440.0%, ZOOM COMMUNICATIONS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of ZOOM COMMUNICATIONS INC has been remarkable, with 154.0% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ZOOM COMMUNICATIONS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall ZM gets a fundamental rating of 6 out of 10. We evaluated ZM against 284 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. ZM is not valued too expensively and it also shows a decent growth rate. These ratings would make ZM suitable for quality investing!

Our latest full fundamental report of ZM contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.