ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
Europe - FRA:5ZM - US98980L1017 - Common Stock
67.44 EUR
-0.5 (-0.74%)
5ZM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 103 industry peers in the Software industry. 5ZM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 5ZM is not valued too expensively and it also shows a decent growth rate. These ratings would make 5ZM suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 5ZM was profitable.
In the past year 5ZM had a positive cash flow from operations.
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
With an excellent Return On Assets value of 9.57%, 5ZM belongs to the best of the industry, outperforming 87.38% of the companies in the same industry.
With a decent Return On Equity value of 11.78%, 5ZM is doing good in the industry, outperforming 70.87% of the companies in the same industry.
5ZM has a Return On Invested Capital of 7.22%. This is in the better half of the industry: 5ZM outperforms 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 12.80%.
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
5ZM's Profit Margin of 22.31% is amongst the best of the industry. 5ZM outperforms 88.35% of its industry peers.
5ZM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 18.13%, 5ZM is doing good in the industry, outperforming 78.64% of the companies in the same industry.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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.
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.
Looking at the Altman-Z score, with a value of 8.94, 5ZM belongs to the top of the industry, outperforming 85.44% of the companies in the same industry.
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.
The Quick ratio of 5ZM (4.57) is better than 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%.
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 2.98% in the past year.
The Revenue has been growing by 49.60% on average over the past years. This is a very strong growth!
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
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
The Price/Earnings ratio is 14.08, which indicates a correct valuation of 5ZM.
Based on the Price/Earnings ratio, 5ZM is valued cheaply inside the industry as 92.23% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. 5ZM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.49, which indicates a correct valuation of 5ZM.
Based on the Price/Forward Earnings ratio, 5ZM is valued cheaper than 86.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, 5ZM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
5ZM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 5ZM is cheaper than 80.58% of the companies in the same industry.
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 5ZM does not grow enough to justify the current Price/Earnings ratio.
5ZM has a very decent profitability rating, which 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%