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 101 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make 5ZM suitable 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
With an excellent Return On Assets value of 9.19%, 5ZM belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
The Return On Equity of 5ZM (11.31%) is better than 67.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.87%, 5ZM is in the better half of the industry, outperforming 63.64% 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 11.53%.
The last Return On Invested Capital (6.87%) for 5ZM is above the 3 year average (5.31%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 21.65%, 5ZM belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
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 76.77% of the companies in the same industry.
5ZM's Operating Margin has improved in the last couple of years.
5ZM's Gross Margin of 75.79% is fine compared to the rest of the industry. 5ZM outperforms 61.62% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 5ZM is destroying value.
5ZM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 5ZM has more shares outstanding
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 8.59 indicates that 5ZM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.59, 5ZM belongs to the best of the industry, outperforming 85.86% of the companies in the same industry.
5ZM 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 | 8.59 |
ROIC/WACC0.49
WACC13.94%
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.
5ZM has a better Current ratio (4.56) than 91.92% of its industry peers.
5ZM has a Quick Ratio of 4.56. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
5ZM has a Quick ratio of 4.56. This is amongst the best in the industry. 5ZM outperforms 91.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.14% over the past year.
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.
The Revenue has been growing slightly by 3.05% in the past year.
5ZM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 49.60% yearly.
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 1.37% yearly.
Based on estimates for the next years, 5ZM will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y-0.15%
EPS Next 2Y0.81%
EPS Next 3Y0.62%
EPS Next 5Y1.37%
Revenue Next Year2.9%
Revenue Next 2Y3.13%
Revenue Next 3Y3.35%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 13.58, 5ZM is valued correctly.
Based on the Price/Earnings ratio, 5ZM is valued cheaper than 92.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of 5ZM to the average of the S&P500 Index (29.35), we can say 5ZM is valued rather cheaply.
The Price/Forward Earnings ratio is 13.59, which indicates a correct valuation of 5ZM.
Based on the Price/Forward Earnings ratio, 5ZM is valued cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 5ZM to the average of the S&P500 Index (22.10), we can say 5ZM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than 5ZM, based on the Enterprise Value to EBITDA ratio.
5ZM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 5ZM is cheaper than 87.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.67 | ||
| EV/EBITDA | 9.27 |
4.3 Compensation for Growth
5ZM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y0.81%
EPS Next 3Y0.62%
5. Dividend
5.1 Amount
5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5ZM (3/7/2025, 7:00:00 PM)
69.13
-1.63 (-2.3%)
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 Cap21.10B
Analysts71.9
Price Target88.82 (28.48%)
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)-0.01%
PT rev (3m)1.28%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 13.59 | ||
| P/S | 4.91 | ||
| P/FCF | 12.67 | ||
| P/OCF | 11.78 | ||
| P/B | 2.56 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 9.27 |
EPS(TTM)5.09
EY7.36%
EPS(NY)5.09
Fwd EY7.36%
FCF(TTM)5.46
FCFY7.9%
OCF(TTM)5.87
OCFY8.49%
SpS14.08
BVpS26.96
TBVpS25.86
PEG (NY)N/A
PEG (5Y)0.18
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 | 8.59 |
F-Score7
WACC13.94%
ROIC/WACC0.49
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 Y-0.15%
EPS Next 2Y0.81%
EPS Next 3Y0.62%
EPS Next 5Y1.37%
Revenue 1Y (TTM)3.05%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%3.29%
Revenue Next Year2.9%
Revenue Next 2Y3.13%
Revenue Next 3Y3.35%
Revenue Next 5Y4.01%
EBIT growth 1Y24.97%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.77%
EBIT Next Year8.07%
EBIT Next 3Y4.04%
EBIT Next 5YN/A
FCF growth 1Y22.89%
FCF growth 3Y7.41%
FCF growth 5Y73.91%
OCF growth 1Y21.67%
OCF growth 3Y6.61%
OCF growth 5Y66.53%