(ZM) Zoom Video Communications - Ratings and Ratios
Video Conferencing, Cloud Phone, Team Chat, Workflow Automation, Contact Center
ZM EPS (Earnings per Share)
ZM Revenue
Description: ZM Zoom Video Communications
Zoom Communications Inc. is a leading provider of an AI-first work platform that enables human connection across various regions. The companys comprehensive suite of products includes Zoom Meetings, Zoom Phone, Zoom Team Chat, and other innovative solutions that facilitate communication, collaboration, and workflow automation.
Key Performance Indicators (KPIs) that highlight the companys success include its large and diverse customer base spanning multiple industries such as education, finance, healthcare, and software/Internet. The companys revenue growth has been driven by its ability to provide a seamless and integrated experience across various devices and platforms. Additionally, Zooms expanding ecosystem, including its App Marketplace and Developer Platform, has enabled the company to stay ahead of the competition and drive user engagement.
From a financial perspective, Zooms market capitalization stands at $22.6 billion, indicating its significant presence in the application software industry. The companys price-to-earnings ratio of 22.47 and forward P/E of 12.97 suggest a relatively stable valuation. Furthermore, Zooms return on equity (RoE) of 11.97% indicates a decent level of profitability.
To further analyze Zooms performance, other relevant KPIs could include its customer acquisition cost, revenue retention rate, and average revenue per user (ARPU). The companys ability to innovate and expand its product offerings, such as Zoom Contact Center and Zoom Revenue Accelerator, will be crucial in driving future growth and maintaining its competitive edge.
ZM Stock Overview
| Market Cap in USD | 24,522m |
| Sub-Industry | Application Software |
| IPO / Inception | 2019-04-18 |
ZM Stock Ratings
| Growth Rating | -0.14% |
| Fundamental | 72.7% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 6.90% |
| Analyst Rating | 3.65 of 5 |
ZM Dividends
Currently no dividends paidZM Growth Ratios
| Growth Correlation 3m | 31.8% |
| Growth Correlation 12m | 7.2% |
| Growth Correlation 5y | -71.8% |
| CAGR 5y | 4.40% |
| CAGR/Max DD 3y | 0.12 |
| CAGR/Mean DD 3y | 0.21 |
| Sharpe Ratio 12m | 0.66 |
| Alpha | 0.01 |
| Beta | 0.993 |
| Volatility | 31.19% |
| Current Volume | 4071.1k |
| Average Volume 20d | 3195.4k |
| Stop Loss | 83.7 (-3%) |
| Signal | 1.05 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (1.19b TTM) > 0 and > 6% of Revenue (6% = 285.2m TTM) |
| FCFTA 0.17 (>2.0%) and ΔFCFTA 0.33pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 141.3% (prev 142.9%; Δ -1.61pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 1.91b > Net Income 1.19b (YES >=105%, WARN >=100%) |
| Net Debt (-1.14b) to EBITDA (825.9m) ratio: -1.39 <= 3.0 (WARN <= 3.5) |
| Current Ratio 4.45 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (308.2m) change vs 12m ago -1.85% (target <= -2.0% for YES) |
| Gross Margin 76.38% (prev 74.56%; Δ 1.82pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 44.11% (prev 43.66%; Δ 0.46pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| error: Interest Coverage Ratio cannot be calculated (needs EBITDA TTM and Interest Expense TTM) |
Altman Z'' 7.96
| (A) 0.61 = (Total Current Assets 8.66b - Total Current Liabilities 1.95b) / Total Assets 11.04b |
| (B) 0.40 = Retained Earnings (Balance) 4.41b / Total Assets 11.04b |
| (C) 0.07 = EBIT TTM 723.7m / Avg Total Assets 10.78b |
| (D) 2.11 = Book Value of Equity 4.41b / Total Liabilities 2.09b |
| Total Rating: 7.96 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 72.67
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 10.91% = 5.0 |
| 3. FCF Margin 38.81% = 7.50 |
| 4. Debt/Equity 0.02 = 2.50 |
| 5. Debt/Ebitda 0.20 = 2.47 |
| 6. ROIC - WACC (= -3.44)% = -4.30 |
| 7. RoE 13.40% = 1.12 |
| 8. Rev. Trend 95.64% = 7.17 |
| 9. EPS Trend 14.27% = 0.71 |
What is the price of ZM shares?
Over the past week, the price has changed by +3.02%, over one month by +17.19%, over three months by +10.78% and over the past year by +26.71%.
Is Zoom Video Communications a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ZM is around 74.78 USD . This means that ZM is currently overvalued and has a potential downside of -13.35%.
Is ZM a buy, sell or hold?
- Strong Buy: 12
- Buy: 1
- Hold: 19
- Sell: 1
- Strong Sell: 1
What are the forecasts/targets for the ZM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 91.6 | 6.2% |
| Analysts Target Price | 91.6 | 6.2% |
| ValueRay Target Price | 83.9 | -2.8% |
Last update: 2025-09-04 02:50
ZM Fundamental Data Overview
CCE Cash And Equivalents = 7.78b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 21.5618
P/E Forward = 13.7741
P/S = 5.1586
P/B = 2.7227
P/EG = 2.7146
Beta = 0.681
Revenue TTM = 4.75b USD
EBIT TTM = 723.7m USD
EBITDA TTM = 825.9m USD
Long Term Debt = 146.3m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 22.2m USD (from shortTermDebt, last quarter)
Debt = 168.5m USD (Calculated: Short Term 22.2m + Long Term 146.3m)
Net Debt = -1.14b USD (from netDebt column, last quarter)
Enterprise Value = 16.91b USD (24.52b + Debt 168.5m - CCE 7.78b)
Interest Coverage Ratio = unknown (Ebit TTM 723.7m / Interest Expense TTM 0.0)
FCF Yield = 10.91% (FCF TTM 1.84b / Enterprise Value 16.91b)
FCF Margin = 38.81% (FCF TTM 1.84b / Revenue TTM 4.75b)
Net Margin = 24.99% (Net Income TTM 1.19b / Revenue TTM 4.75b)
Gross Margin = 76.38% ((Revenue TTM 4.75b - Cost of Revenue TTM 1.12b) / Revenue TTM)
Tobins Q-Ratio = 3.83 (Enterprise Value 16.91b / Book Value Of Equity 4.41b)
Interest Expense / Debt = 19.87% (Interest Expense 33.5m / Debt 168.5m)
Taxrate = 23.21% (305.3m / 1.32b)
NOPAT = 555.7m (EBIT 723.7m * (1 - 23.21%))
Current Ratio = 4.45 (Total Current Assets 8.66b / Total Current Liabilities 1.95b)
Debt / Equity = 0.02 (Debt 168.5m / last Quarter total Stockholder Equity 8.95b)
Debt / EBITDA = 0.20 (Net Debt -1.14b / EBITDA 825.9m)
Debt / FCF = 0.09 (Debt 168.5m / FCF TTM 1.84b)
Total Stockholder Equity = 8.87b (last 4 quarters mean)
RoA = 10.76% (Net Income 1.19b, Total Assets 11.04b )
RoE = 13.40% (Net Income TTM 1.19b / Total Stockholder Equity 8.87b)
RoCE = 8.03% (Ebit 723.7m / (Equity 8.87b + L.T.Debt 146.3m))
RoIC = 6.27% (NOPAT 555.7m / Invested Capital 8.87b)
WACC = 9.71% (E(24.52b)/V(24.69b) * Re(9.67%)) + (D(168.5m)/V(24.69b) * Rd(19.87%) * (1-Tc(0.23)))
Shares Correlation 3-Years: 54.55 | Cagr: 0.19%
Discount Rate = 9.67% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 73.94% ; FCFE base≈1.80b ; Y1≈1.95b ; Y5≈2.44b
Fair Price DCF = 120.4 (DCF Value 32.09b / Shares Outstanding 266.5m; 5y FCF grow 9.72% → 3.0% )
EPS Correlation: 14.27 | EPS CAGR: 13.89% | SUE: 2.03 | # QB: 12
Revenue Correlation: 95.64 | Revenue CAGR: 3.69% | SUE: 2.30 | # QB: 2
Additional Sources for ZM Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle