ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
Europe - FRA:5ZM - US98980L1017 - Common Stock
67.44 EUR
-0.5 (-0.74%)
Overall 5ZM gets a fundamental rating of 7 out of 10. We evaluated 5ZM against 111 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 has a decent growth rate and is not valued too expensively. With these ratings, 5ZM could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
5ZM had positive earnings in the past year.
In the past year 5ZM had a positive cash flow from operations.
Each year in the past 5 years 5ZM has been profitable.
Each year in the past 5 years 5ZM had a positive operating cash flow.
1.2 Ratios
5ZM's Return On Assets of 9.57% is amongst the best of the industry. 5ZM outperforms 87.38% of its industry peers.
Looking at the Return On Equity, with a value of 11.78%, 5ZM is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.22%, 5ZM is in the better half of the industry, outperforming 67.96% of the companies in the same industry.
5ZM had an Average Return On Invested Capital over the past 3 years of 5.31%. This is significantly below the industry average of 12.56%.
The last Return On Invested Capital (7.22%) for 5ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 11.78% | ||
| ROIC | 7.22% |
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 5ZM (22.31%) is better than 88.35% of its industry peers.
In the last couple of years the Profit Margin of 5ZM has grown nicely.
5ZM has a Operating Margin of 18.13%. This is in the better half of the industry: 5ZM outperforms 78.64% of its industry peers.
5ZM's Operating Margin has improved in the last couple of years.
5ZM's Gross Margin of 75.85% is in line compared to the rest of the industry. 5ZM outperforms 59.22% of its industry peers.
In the last couple of years the Gross Margin of 5ZM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 22.31% | ||
| GM | 75.85% |
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
5ZM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
5ZM has an Altman-Z score of 8.94. This indicates that 5ZM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 5ZM (8.94) is better than 85.44% 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 | 8.94 |
ROIC/WACC0.81
WACC8.93%
2.3 Liquidity
5ZM has a Current Ratio of 4.57. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
5ZM's Current ratio of 4.57 is amongst the best of the industry. 5ZM outperforms 89.32% of its industry peers.
A Quick Ratio of 4.57 indicates that 5ZM has no problem at all paying its short term obligations.
5ZM's Quick ratio of 4.57 is amongst the best of the industry. 5ZM outperforms 89.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.57 | ||
| Quick Ratio | 4.57 |
3. Growth
3.1 Past
5ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.89%.
Measured over the past years, 5ZM shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.67% on average per year.
5ZM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
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)3.89%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%5.93%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%2.93%
3.2 Future
Based on estimates for the next years, 5ZM will show a small growth in Earnings Per Share. The EPS will grow by 2.47% on average per year.
5ZM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.06% yearly.
EPS Next Y3.9%
EPS Next 2Y2.87%
EPS Next 3Y3.36%
EPS Next 5Y2.47%
Revenue Next Year3.15%
Revenue Next 2Y3.21%
Revenue Next 3Y3.35%
Revenue Next 5Y3.06%
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
Based on the Price/Earnings ratio of 14.08, the valuation of 5ZM can be described as correct.
Based on the Price/Earnings ratio, 5ZM is valued cheaper than 92.23% of the companies in the same industry.
5ZM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.49, the valuation of 5ZM can be described as correct.
86.41% of the companies in the same industry are more expensive than 5ZM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.85. 5ZM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 5ZM is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 5ZM is valued cheaper than 86.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.03 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 5ZM may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)0.19
EPS Next 2Y2.87%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (6/19/2025, 7:00:00 PM)
67.44
-0.5 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners74.24%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap20.40B
Analysts72.2
Price Target80.81 (19.83%)
Short Float %N/A
Short RatioN/A
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)5.67%
Min EPS beat(2)5.11%
Max EPS beat(2)6.23%
EPS beat(4)4
Avg EPS beat(4)6.17%
Min EPS beat(4)2.2%
Max EPS beat(4)11.15%
EPS beat(8)8
Avg EPS beat(8)11.5%
EPS beat(12)12
Avg EPS beat(12)15.41%
EPS beat(16)15
Avg EPS beat(16)14.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-2.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.79%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.94%
Revenue beat(16)1
Avg Revenue beat(16)-1.66%
PT rev (1m)0.09%
PT rev (3m)-9.02%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)1.74%
EPS NY rev (1m)3.07%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.49 | ||
| P/S | 5.08 | ||
| P/FCF | 14.03 | ||
| P/OCF | 12.93 | ||
| P/B | 2.68 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)4.79
EY7.1%
EPS(NY)5
Fwd EY7.41%
FCF(TTM)4.81
FCFY7.13%
OCF(TTM)5.21
OCFY7.73%
SpS13.27
BVpS25.14
TBVpS24.12
PEG (NY)3.61
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 11.78% | ||
| ROCE | 9.41% | ||
| ROIC | 7.22% | ||
| ROICexc | 51.78% | ||
| ROICexgc | 72.67% | ||
| OM | 18.13% | ||
| PM (TTM) | 22.31% | ||
| GM | 75.85% | ||
| FCFM | 36.23% |
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%
ROICexcg growth 3Y-24.37%
ROICexcg 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 | 109.66% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 187.8% | ||
| Profit Quality | 162.36% | ||
| Current Ratio | 4.57 | ||
| Quick Ratio | 4.57 | ||
| Altman-Z | 8.94 |
F-Score7
WACC8.93%
ROIC/WACC0.81
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)3.89%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%5.93%
EPS Next Y3.9%
EPS Next 2Y2.87%
EPS Next 3Y3.36%
EPS Next 5Y2.47%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%2.93%
Revenue Next Year3.15%
Revenue Next 2Y3.21%
Revenue Next 3Y3.35%
Revenue Next 5Y3.06%
EBIT growth 1Y18.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year10.48%
EBIT Next 3Y5.55%
EBIT Next 5Y4.97%
FCF growth 1Y58.52%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y56.13%
OCF growth 3Y6.61%
OCF growth 5Y66.53%