ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:5ZM - US98980L1017 - Common Stock
70.81 EUR
-1.1 (-1.53%)
Overall 5ZM gets a fundamental rating of 7 out of 10. We evaluated 5ZM against 125 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 5ZM a very profitable company, without any liquidiy or solvency issues. 5ZM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make 5ZM a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year 5ZM was profitable.
- 5ZM had a positive operating cash flow in the past year.
- 5ZM had positive earnings in each of the past 5 years.
- In the past 5 years 5ZM always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.99%, 5ZM belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
- The Return On Equity of 5ZM (17.16%) is better than 73.60% of its industry peers.
- With a decent Return On Invested Capital value of 9.08%, 5ZM is doing good in the industry, outperforming 68.80% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 5ZM is significantly below the industry average of 12.89%.
- The last Return On Invested Capital (9.08%) for 5ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| 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%, 5ZM belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
- 5ZM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 23.24%, 5ZM belongs to the top of the industry, outperforming 82.40% of the companies in the same industry.
- 5ZM's Operating Margin has improved in the last couple of years.
- 5ZM has a Gross Margin (76.89%) which is in line with its industry peers.
- 5ZM'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), 5ZM is destroying value.
- Compared to 1 year ago, 5ZM has less shares outstanding
- The number of shares outstanding for 5ZM has been increased compared to 5 years ago.
- 5ZM 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 9.03 indicates that 5ZM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 5ZM (9.03) is better than 87.20% of its industry peers.
- There is no outstanding debt for 5ZM. 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 | 9.03 |
ROIC/WACC0.83
WACC10.99%
2.3 Liquidity
- 5ZM has a Current Ratio of 4.45. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 4.45, 5ZM belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
- 5ZM has a Quick Ratio of 4.45. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of 5ZM (4.45) is better than 90.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.32% over the past year.
- The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
- Looking at the last year, 5ZM shows a small growth in Revenue. The Revenue has grown by 3.85% in the last year.
- Measured over the past years, 5ZM 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
- 5ZM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
- The Revenue is expected to grow by 3.88% on average over the next years.
EPS Next Y12.72%
EPS Next 2Y6.17%
EPS Next 3Y5.1%
EPS Next 5Y4.04%
Revenue Next Year4.21%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.88%
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
- With a Price/Earnings ratio of 13.97, 5ZM is valued correctly.
- 5ZM's Price/Earnings ratio is rather cheap when compared to the industry. 5ZM is cheaper than 88.80% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, 5ZM is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 13.21, the valuation of 5ZM can be described as correct.
- Based on the Price/Forward Earnings ratio, 5ZM is valued cheaper than 87.20% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 5ZM to the average of the S&P500 Index (24.31), we can say 5ZM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
- 85.60% of the companies in the same industry are more expensive than 5ZM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, 5ZM is valued cheaper than 90.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.18 | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
- 5ZM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of 5ZM may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)0.19
EPS Next 2Y6.17%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
- 5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:5ZM (1/15/2026, 7:00:00 PM)
70.81
-1.1 (-1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-24 2025-11-24/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners77%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap20.97B
Revenue(TTM)4.81B
Net Income(TTM)1.59B
Analysts74
Price Target82.25 (16.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)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)13.65%
EPS beat(16)16
Avg EPS beat(16)14.23%
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)-1.6%
Revenue beat(16)0
Avg Revenue beat(16)-1.86%
PT rev (1m)3.18%
PT rev (3m)1.78%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)5.19%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)8.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.21 | ||
| P/S | 5.07 | ||
| P/FCF | 12.18 | ||
| P/OCF | 11.84 | ||
| P/B | 2.62 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 7.75 |
EPS(TTM)5.07
EY7.16%
EPS(NY)5.36
Fwd EY7.57%
FCF(TTM)5.81
FCFY8.21%
OCF(TTM)5.98
OCFY8.45%
SpS13.96
BVpS26.98
TBVpS26.09
PEG (NY)1.1
PEG (5Y)0.19
Graham Number55.48
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 | 9.03 |
F-Score7
WACC10.99%
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 Y12.72%
EPS Next 2Y6.17%
EPS Next 3Y5.1%
EPS Next 5Y4.04%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
Revenue Next Year4.21%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.88%
EBIT growth 1Y47.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.78%
EBIT Next Year15.18%
EBIT Next 3Y6.4%
EBIT Next 5Y6.5%
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 / 5ZM.DE FAQ
What is the fundamental rating for 5ZM stock?
ChartMill assigns a fundamental rating of 7 / 10 to 5ZM.DE.
What is the valuation status for 5ZM stock?
ChartMill assigns a valuation rating of 7 / 10 to ZOOM COMMUNICATIONS INC (5ZM.DE). This can be considered as Undervalued.
How profitable is ZOOM COMMUNICATIONS INC (5ZM.DE) stock?
ZOOM COMMUNICATIONS INC (5ZM.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ZOOM COMMUNICATIONS INC (5ZM.DE) stock?
The Price/Earnings (PE) ratio for ZOOM COMMUNICATIONS INC (5ZM.DE) is 13.97 and the Price/Book (PB) ratio is 2.62.