ZOOM VIDEO COMMUNICATIONS-A (ZM)
US98980L1017 - Common Stock
Overall ZM gets a fundamental rating of 6 out of 10. We evaluated ZM against 279 industry peers in the Software industry. ZM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ZM is not valued too expensively and it also shows a decent growth rate. With these ratings, ZM could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ZM had positive earnings in the past year.
ZM had a positive operating cash flow in the past year.
Each year in the past 5 years ZM has been profitable.
ZM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ZM (8.33%) is better than 84.95% of its industry peers.
ZM's Return On Equity of 10.27% is amongst the best of the industry. ZM outperforms 80.29% of its industry peers.
ZM has a Return On Invested Capital of 5.57%. This is in the better half of the industry: ZM outperforms 75.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ZM is significantly below the industry average of 11.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 10.27% | ||
| ROIC | 5.57% |
ROA(3y)8.64%
ROA(5y)8.05%
ROE(3y)11.14%
ROE(5y)10.68%
ROIC(3y)5.83%
ROIC(5y)5.62%
1.3 Margins
Looking at the Profit Margin, with a value of 19.08%, ZM belongs to the top of the industry, outperforming 86.74% of the companies in the same industry.
ZM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.80%, ZM belongs to the top of the industry, outperforming 86.02% of the companies in the same industry.
ZM's Operating Margin has improved in the last couple of years.
ZM has a Gross Margin of 75.89%. This is in the better half of the industry: ZM outperforms 69.89% of its industry peers.
ZM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 19.08% | ||
| GM | 75.89% |
OM growth 3Y-17.13%
OM growth 5Y50.27%
PM growth 3Y-17.77%
PM growth 5YN/A
GM growth 3Y3.43%
GM growth 5Y-1.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ZM is destroying value.
Compared to 1 year ago, ZM has more shares outstanding
The number of shares outstanding for ZM has been increased compared to 5 years ago.
ZM 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
ZM has an Altman-Z score of 9.23. This indicates that ZM is financially healthy and has little risk of bankruptcy at the moment.
ZM has a better Altman-Z score (9.23) than 78.85% of its industry peers.
ZM 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 | 9.23 |
ROIC/WACC0.47
WACC11.84%
2.3 Liquidity
A Current Ratio of 4.56 indicates that ZM has no problem at all paying its short term obligations.
ZM has a Current ratio of 4.56. This is amongst the best in the industry. ZM outperforms 84.59% of its industry peers.
ZM has a Quick Ratio of 4.56. This indicates that ZM is financially healthy and has no problem in meeting its short term obligations.
ZM's Quick ratio of 4.56 is amongst the best of the industry. ZM outperforms 84.59% 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 grown by an nice 13.78% over the past year.
Measured over the past years, ZM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.09% on average per year.
Looking at the last year, ZM shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
Measured over the past years, ZM shows a very strong growth in Revenue. The Revenue has been growing by 68.78% on average per year.
EPS 1Y (TTM)13.78%
EPS 3Y16.09%
EPS 5YN/A
EPS Q2Q%3.73%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y19.52%
Revenue growth 5Y68.78%
Sales Q2Q%2.09%
3.2 Future
ZM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.01% yearly.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y5.9%
EPS Next 2Y2.29%
EPS Next 3Y1.87%
EPS Next 5Y-0.01%
Revenue Next Year2.86%
Revenue Next 2Y3.04%
Revenue Next 3Y3.15%
Revenue Next 5Y3.78%
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
The Price/Earnings ratio is 14.30, which indicates a correct valuation of ZM.
Based on the Price/Earnings ratio, ZM is valued cheaply inside the industry as 88.53% of the companies are valued more expensively.
ZM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 14.29, ZM is valued correctly.
Based on the Price/Forward Earnings ratio, ZM is valued cheaper than 87.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ZM to the average of the S&P500 Index (23.50), we can say ZM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 14.29 |
4.2 Price Multiples
ZM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ZM is cheaper than 90.68% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZM indicates a rather cheap valuation: ZM is cheaper than 91.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZM does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ZM may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y2.29%
EPS Next 3Y1.87%
5. Dividend
5.1 Amount
ZM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZOOM VIDEO COMMUNICATIONS-A
NASDAQ:ZM (11/19/2024, 10:17:01 AM)
77.915
-1.02 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 14.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 10.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.8% | ||
| PM (TTM) | 19.08% | ||
| GM | 75.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.78%
EPS 3Y16.09%
EPS 5Y
EPS Q2Q%
EPS Next Y5.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.76%
Revenue growth 3Y19.52%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y