ZOOM COMMUNICATIONS INC (5ZM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:5ZM - US98980L1017 - Common Stock
74.25 EUR
-2.59 (-3.37%)
We assign a fundamental rating of 7 out of 10 to 5ZM. 5ZM was compared to 115 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on 5ZM. These ratings could make 5ZM a good candidate for value and 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.
In the past 5 years 5ZM has always 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 13.99%, 5ZM belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
5ZM has a Return On Equity of 17.16%. This is in the better half of the industry: 5ZM outperforms 73.04% of its industry peers.
5ZM has a Return On Invested Capital of 9.08%. This is in the better half of the industry: 5ZM outperforms 66.96% 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 12.89%.
The 3 year average ROIC (5.31%) for 5ZM is below the current ROIC(9.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 17.16% | ||
| ROIC | 9.08% |
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 (33.17%) is better than 91.30% of its industry peers.
In the last couple of years the Profit Margin of 5ZM has grown nicely.
Looking at the Operating Margin, with a value of 23.24%, 5ZM belongs to the top of the industry, outperforming 81.74% of the companies in the same industry.
In the last couple of years the Operating Margin of 5ZM has grown nicely.
Looking at the Gross Margin, with a value of 76.89%, 5ZM is in line with its industry, outperforming 59.13% 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 | 23.24% | ||
| PM (TTM) | 33.17% | ||
| GM | 76.89% |
OM growth 3Y-12.41%
OM growth 5Y53.6%
PM growth 3Y-13.57%
PM growth 5Y44.03%
GM growth 3Y0.67%
GM growth 5Y-1.43%
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.
The number of shares outstanding for 5ZM has been reduced compared to 1 year ago.
Compared to 5 years ago, 5ZM has more shares outstanding
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 9.46. This indicates that 5ZM is financially healthy and has little risk of bankruptcy at the moment.
5ZM has a better Altman-Z score (9.46) than 87.83% 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 | 9.46 |
ROIC/WACC0.82
WACC11.05%
2.3 Liquidity
5ZM has a Current Ratio of 4.45. This indicates that 5ZM is financially healthy and has no problem in meeting its short term obligations.
5ZM's Current ratio of 4.45 is amongst the best of the industry. 5ZM outperforms 89.57% of its industry peers.
A Quick Ratio of 4.45 indicates that 5ZM has no problem at all paying its short term obligations.
5ZM has a better Quick ratio (4.45) than 89.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 |
3. Growth
3.1 Past
5ZM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.32%.
The Earnings Per Share has been growing by 73.67% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.85% 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)6.32%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.14%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
3.2 Future
The Earnings Per Share is expected to grow by 3.61% on average over the next years.
Based on estimates for the next years, 5ZM will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y12.77%
EPS Next 2Y6.23%
EPS Next 3Y5.15%
EPS Next 5Y3.61%
Revenue Next Year4.19%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.67%
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
A Price/Earnings ratio of 14.85 indicates a correct valuation of 5ZM.
Compared to the rest of the industry, the Price/Earnings ratio of 5ZM indicates a rather cheap valuation: 5ZM is cheaper than 87.83% of the companies listed in the same industry.
5ZM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
5ZM is valuated correctly with a Price/Forward Earnings ratio of 14.02.
85.22% 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 23.93. 5ZM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 5ZM is valued cheaper than 82.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 5ZM is valued cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 8.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
5ZM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)0.2
EPS Next 2Y6.23%
EPS Next 3Y5.15%
5. Dividend
5.1 Amount
5ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:5ZM (12/23/2025, 7:00:00 PM)
74.25
-2.59 (-3.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap21.99B
Revenue(TTM)4.81B
Net Income(TTM)1.59B
Analysts73.33
Price Target79.71 (7.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.55%
Min EPS beat(2)2.51%
Max EPS beat(2)8.59%
EPS beat(4)4
Avg EPS beat(4)5.61%
Min EPS beat(4)2.51%
Max EPS beat(4)8.59%
EPS beat(8)8
Avg EPS beat(8)8.11%
EPS beat(12)12
Avg EPS beat(12)13.68%
EPS beat(16)16
Avg EPS beat(16)14.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-1.36%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)0
Avg Revenue beat(16)-1.85%
PT rev (1m)-1.36%
PT rev (3m)-1.36%
EPS NQ rev (1m)5.22%
EPS NQ rev (3m)5.22%
EPS NY rev (1m)8.54%
EPS NY rev (3m)8.54%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 14.02 | ||
| P/S | 5.39 | ||
| P/FCF | 12.95 | ||
| P/OCF | 12.58 | ||
| P/B | 2.79 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 8.98 |
EPS(TTM)5
EY6.73%
EPS(NY)5.29
Fwd EY7.13%
FCF(TTM)5.73
FCFY7.72%
OCF(TTM)5.9
OCFY7.95%
SpS13.77
BVpS26.61
TBVpS25.73
PEG (NY)1.16
PEG (5Y)0.2
Graham Number54.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 17.16% | ||
| ROCE | 11.84% | ||
| ROIC | 9.08% | ||
| ROICexc | 57.56% | ||
| ROICexgc | 72.53% | ||
| OM | 23.24% | ||
| PM (TTM) | 33.17% | ||
| GM | 76.89% | ||
| FCFM | 41.64% |
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%
ROICexgc growth 3Y-24.37%
ROICexgc growth 5Y47.42%
ROICexc growth 3Y-31.14%
ROICexc growth 5Y37.94%
OM growth 3Y-12.41%
OM growth 5Y53.6%
PM growth 3Y-13.57%
PM growth 5Y44.03%
GM growth 3Y0.67%
GM growth 5Y-1.43%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 42.93% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 164.56% | ||
| Profit Quality | 125.56% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 4.45 | ||
| Altman-Z | 9.46 |
F-Score7
WACC11.05%
ROIC/WACC0.82
Cap/Depr(3y)124.24%
Cap/Depr(5y)194.45%
Cap/Sales(3y)2.78%
Cap/Sales(5y)3.03%
Profit Quality(3y)514.38%
Profit Quality(5y)371.12%
High Growth Momentum
Growth
EPS 1Y (TTM)6.32%
EPS 3Y2.87%
EPS 5Y73.67%
EPS Q2Q%10.14%
EPS Next Y12.77%
EPS Next 2Y6.23%
EPS Next 3Y5.15%
EPS Next 5Y3.61%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y4.4%
Revenue growth 5Y49.6%
Sales Q2Q%4.44%
Revenue Next Year4.19%
Revenue Next 2Y3.86%
Revenue Next 3Y3.76%
Revenue Next 5Y3.67%
EBIT growth 1Y47.58%
EBIT growth 3Y-8.56%
EBIT growth 5Y129.78%
EBIT Next Year15.18%
EBIT Next 3Y6.4%
EBIT Next 5Y5.98%
FCF growth 1Y51.41%
FCF growth 3Y7.41%
FCF growth 5Y73.92%
OCF growth 1Y41.11%
OCF growth 3Y6.61%
OCF growth 5Y66.53%
ZOOM COMMUNICATIONS INC / 5ZM.DE FAQ
What is the fundamental rating for 5ZM stock?
ChartMill assigns a fundamental rating of 7 / 10 to 5ZM.DE.
Can you provide the valuation status for ZOOM COMMUNICATIONS INC?
ChartMill assigns a valuation rating of 7 / 10 to ZOOM COMMUNICATIONS INC (5ZM.DE). This can be considered as Undervalued.
Can you provide the profitability details for ZOOM COMMUNICATIONS INC?
ZOOM COMMUNICATIONS INC (5ZM.DE) has a profitability rating of 8 / 10.
How financially healthy is ZOOM COMMUNICATIONS INC?
The financial health rating of ZOOM COMMUNICATIONS INC (5ZM.DE) is 9 / 10.
What is the expected EPS growth for ZOOM COMMUNICATIONS INC (5ZM.DE) stock?
The Earnings per Share (EPS) of ZOOM COMMUNICATIONS INC (5ZM.DE) is expected to grow by 12.77% in the next year.