ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
FRA:5ZM - Deutsche Boerse Ag - US98980L1017 - Common Stock - Currency: EUR
Overall 5ZM gets a fundamental rating of 7 out of 10. We evaluated 5ZM against 100 industry peers in the Software industry. 5ZM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year 5ZM was profitable.
5ZM had a positive operating cash flow in the past year.
Each year in the past 5 years 5ZM has been profitable.
5ZM had a positive operating cash flow in each of the past 5 years.
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.
5ZM has a Return On Equity of 11.78%. This is in the better half of the industry: 5ZM outperforms 70.87% of its industry peers.
5ZM has a better Return On Invested Capital (7.22%) than 67.96% of its industry peers.
5ZM had an Average Return On Invested Capital over the past 3 years of 5.31%. This is significantly below the industry average of 11.09%.
The 3 year average ROIC (5.31%) for 5ZM is below the current ROIC(7.22%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 22.31%, 5ZM belongs to the best of the industry, outperforming 88.35% of the companies in the same industry.
5ZM's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 75.85%, 5ZM is in line with its industry, outperforming 59.22% of the companies in the same industry.
5ZM's Gross Margin has been stable in the last couple of years.
| 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
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
5ZM has more shares outstanding than it did 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 8.94 indicates that 5ZM is not in any danger for bankruptcy at the moment.
5ZM has a better Altman-Z score (8.94) 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
A Current Ratio of 4.57 indicates that 5ZM has no problem at all paying its short term obligations.
5ZM has a Current ratio of 4.57. This is amongst the best in 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.
With an excellent Quick ratio value of 4.57, 5ZM belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
| 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%.
5ZM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.67% yearly.
Looking at the last year, 5ZM shows a small growth in Revenue. The Revenue has grown by 2.98% in the last 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)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
The Earnings Per Share is expected to grow by 2.47% on average over the next years.
The Revenue is expected to grow by 3.06% on average over the next years.
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
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.
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
With a Price/Earnings ratio of 14.08, 5ZM is valued correctly.
92.23% of the companies in the same industry are more expensive than 5ZM, based on the Price/Earnings ratio.
5ZM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
5ZM is valuated correctly with a Price/Forward Earnings ratio of 13.49.
86.41% of the companies in the same industry are more expensive than 5ZM, based on the Price/Forward Earnings ratio.
5ZM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
80.58% of the companies in the same industry are more expensive than 5ZM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 5ZM indicates a rather cheap valuation: 5ZM is cheaper than 86.41% of the companies listed 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 5ZM does not grow enough to justify the current Price/Earnings ratio.
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
No dividends for 5ZM!.
| 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%