ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
FRA:5ZM - Deutsche Boerse Ag - US98980L1017 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 5ZM. 5ZM was compared to 95 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. These ratings would make 5ZM suitable for quality investing!
1. Profitability
1.1 Basic Checks
5ZM had positive earnings in the past year.
5ZM had a positive operating cash flow in the past year.
5ZM had positive earnings in each of the past 5 years.
5ZM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
5ZM has a better Return On Assets (9.19%) than 82.98% of its industry peers.
5ZM has a Return On Equity of 11.31%. This is in the better half of the industry: 5ZM outperforms 65.96% of its industry peers.
5ZM's Return On Invested Capital of 6.87% is fine compared to the rest of the industry. 5ZM outperforms 68.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 5ZM is significantly below the industry average of 11.01%.
The 3 year average ROIC (5.31%) for 5ZM is below the current ROIC(6.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 11.31% | ||
| ROIC | 6.87% |
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
5ZM has a Profit Margin of 21.65%. This is amongst the best in the industry. 5ZM outperforms 85.11% of its industry peers.
In the last couple of years the Profit Margin of 5ZM has grown nicely.
With a decent Operating Margin value of 17.43%, 5ZM is doing good in the industry, outperforming 78.72% of the companies in the same industry.
In the last couple of years the Operating Margin of 5ZM has grown nicely.
5ZM's Gross Margin of 75.79% is fine compared to the rest of the industry. 5ZM outperforms 63.83% 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 | 17.43% | ||
| PM (TTM) | 21.65% | ||
| GM | 75.79% |
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), 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
5ZM has an Altman-Z score of 8.68. This indicates that 5ZM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 5ZM (8.68) is better than 87.23% 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 | 8.68 |
ROIC/WACC0.65
WACC10.54%
2.3 Liquidity
5ZM has a Current Ratio of 4.56. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.56, 5ZM belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
A Quick Ratio of 4.56 indicates that 5ZM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.56, 5ZM belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 |
3. Growth
3.1 Past
5ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.14%.
5ZM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.67% yearly.
The Revenue has been growing slightly by 3.05% in the past 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)6.14%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%-0.7%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%3.29%
3.2 Future
5ZM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.09% yearly.
Based on estimates for the next years, 5ZM will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y0.77%
EPS Next 2Y1.34%
EPS Next 3Y2.16%
EPS Next 5Y0.09%
Revenue Next Year2.75%
Revenue Next 2Y3.04%
Revenue Next 3Y3.3%
Revenue Next 5Y2.81%
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 13.76, 5ZM is valued correctly.
5ZM's Price/Earnings ratio is rather cheap when compared to the industry. 5ZM is cheaper than 91.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of 5ZM to the average of the S&P500 Index (28.78), we can say 5ZM is valued rather cheaply.
A Price/Forward Earnings ratio of 13.65 indicates a correct valuation of 5ZM.
Based on the Price/Forward Earnings ratio, 5ZM is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, 5ZM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 13.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 5ZM is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 5ZM is valued cheaply inside the industry as 85.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.84 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 5ZM does not grow enough to justify the current Price/Earnings ratio.
5ZM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)17.94
PEG (5Y)0.19
EPS Next 2Y1.34%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
No dividends for 5ZM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (4/25/2025, 7:00:00 PM)
66.99
+1.15 (+1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap20.45B
Analysts71.9
Price Target78.82 (17.66%)
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)3.65%
Min EPS beat(2)2.2%
Max EPS beat(2)5.11%
EPS beat(4)4
Avg EPS beat(4)7.03%
Min EPS beat(4)2.2%
Max EPS beat(4)11.15%
EPS beat(8)8
Avg EPS beat(8)12.47%
EPS beat(12)12
Avg EPS beat(12)16.1%
EPS beat(16)15
Avg EPS beat(16)15.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.58%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)2
Avg Revenue beat(16)-1.37%
PT rev (1m)-11.26%
PT rev (3m)-12.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 13.65 | ||
| P/S | 4.98 | ||
| P/FCF | 12.84 | ||
| P/OCF | 11.94 | ||
| P/B | 2.6 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)4.87
EY7.27%
EPS(NY)4.91
Fwd EY7.32%
FCF(TTM)5.22
FCFY7.79%
OCF(TTM)5.61
OCFY8.38%
SpS13.46
BVpS25.78
TBVpS24.72
PEG (NY)17.94
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 11.31% | ||
| ROCE | 8.95% | ||
| ROIC | 6.87% | ||
| ROICexc | 48.22% | ||
| ROICexgc | 67.25% | ||
| OM | 17.43% | ||
| PM (TTM) | 21.65% | ||
| GM | 75.79% | ||
| FCFM | 38.77% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.36% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 207.85% | ||
| Profit Quality | 179.04% | ||
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 | ||
| Altman-Z | 8.68 |
F-Score7
WACC10.54%
ROIC/WACC0.65
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)6.14%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%-0.7%
EPS Next Y0.77%
EPS Next 2Y1.34%
EPS Next 3Y2.16%
EPS Next 5Y0.09%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%3.29%
Revenue Next Year2.75%
Revenue Next 2Y3.04%
Revenue Next 3Y3.3%
Revenue Next 5Y2.81%
EBIT growth 1Y24.97%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year9.73%
EBIT Next 3Y5.29%
EBIT Next 5Y3.11%
FCF growth 1Y22.89%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y21.67%
OCF growth 3Y6.61%
OCF growth 5Y66.53%