ZM Stock Analysis: Zoom Video Communications | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 30.643m USD | 12M Return: 52% | US98980L1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 292M
EPS Trend: 96.9%
Qual. Beats: 1
Rev. Trend: 99.2%
Qual. Beats: 5
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 7.3 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Zoom Communications, Inc. (NASDAQ: ZM) is a San Jose-based software company founded in 2011 and listed since 2019, rebranded from Zoom Video Communications in November 2024. It operates an AI-first open work platform that combines unified communications, collaboration, and customer engagement tools across the Americas, EMEA, and Asia Pacific.
Its core product suite centers on Zoom Meetings (HD video, voice, chat, content sharing across devices and conference room systems), supplemented by Zoom Phone (cloud PBX), Team Chat, Zoom Docs, Whiteboard, Clips, Rooms, and Workspace Reservation. On the customer engagement side, it offers Zoom Contact Center (an omnichannel/CCaaS solution), Revenue Accelerator (conversation intelligence), Events, and Webinars, along with Workvivo for employee experience and a Developer Platform with an App Marketplace.
Zoom sells to both individual users and a broad enterprise base spanning education, media/entertainment, finance, government, healthcare, manufacturing, retail, and software/Internet sectors. As an Application Software provider (GICS Information Technology), it follows a typical SaaS business model, monetizing through tiered subscriptions and usage-based add-ons, and it competes primarily with other unified-communications and collaboration platforms such as Microsoft Teams, Cisco Webex, and Google Meet.
- Enterprise revenue growth offsets online segment decline
- AI Companion adoption drives paid seat and ARPU expansion
- Capital return program continues with ongoing share buybacks
| Net Income: 2.07b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 0.58 > 1.0 |
| NWC/Revenue: 132.6% < 20% (prev 144.1%; Δ -11.42% < -1%) |
| CFO/TA 0.17 > 3% & CFO 2.02b > Net Income 2.07b |
| Net Debt (-7.66b) to EBITDA (2.79b): -2.75 < 3 |
| Current Ratio: 4.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (300.2m) vs 12m ago -4.01% < -2% |
| Gross Margin: 77.40% > 18% (prev 75.85%; Δ 1.55% > 0.5%) |
| Asset Turnover: 42.68% > 50% (prev 42.91%; Δ -0.22% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.54 (Total Current Assets 8.58b - Total Current Liabilities 2.03b) / Total Assets 12.2b |
| B: 0.50 (Retained Earnings 6.13b / Total Assets 12.2b) |
| C: 0.23 (EBIT TTM 2.64b / Avg Total Assets 11.6b) |
| D: 4.55 (Book Value of Equity 9.97b / Total Liabilities 2.19b) |
| Altman-Z'' = 11.48 = AAA |
| DSRI: 0.93 (Receivables 467.8m/477.2m, Revenue 4.93b/4.70b) |
| GMI: 0.98 (GM 75.85% / 77.40%) |
| AQI: 1.54 (AQ_t 0.27 / AQ_t-1 0.18) |
| SGI: 1.05 (Revenue 4.93b / 4.70b) |
| TATA: 0.00 (NI 2.07b - CFO 2.02b) / TA 12.2b) |
| Beneish M = -2.74 (Cap -4..+1) = A |
As of August 12, 2026, the stock is trading at USD 106.06 with a total of 2,154,159 shares traded. Over the past week, the price has changed by +3.86%, over one month by +15.43%, over three months by -0.99% and over the past year by +52.01%.
Current recommended Stop Loss: 101.30 (which is 4.5% or 1.3 ATR below the current price).
Zoom Video Communications has received a consensus analysts rating of 3.65. Therefore, it is recommended to hold ZM.
- StrongBuy: 12
- Buy: 1
- Hold: 19
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 115 | 8.4% |
P/E Trailing = 15.3903
P/E Forward = 16.5289
P/S = 6.2117
P/B = 3.0731
P/EG = 4.2142
Revenue TTM = 4.93b USD
EBIT TTM = 2.64b USD
EBITDA TTM = 2.79b USD
Long Term Debt = 31.9m USD (estimated: total debt 60.2m - short term 28.3m)
Short Term Debt = 28.3m USD (from shortTermDebt, last quarter)
Debt = 60.2m USD (from shortLongTermDebtTotal, last quarter) (leases 60.2m already included)
Net Debt = -7.66b USD (calculated: Debt 60.2m - CCE 7.72b)
Enterprise Value = 23.0b USD (30.6b + Debt 60.2m - CCE 7.72b)
Interest Coverage Ratio = unknown (Ebit TTM 2.64b / Interest Expense TTM 0.0)
EV/FCF = 11.72x (Enterprise Value 23.0b / FCF TTM 1.96b)
FCF Yield = 8.53% (FCF TTM 1.96b / Enterprise Value 23.0b)
FCF Margin = 39.75% (FCF TTM 1.96b / Revenue TTM 4.93b)
Net Margin = 41.99% (Net Income TTM 2.07b / Revenue TTM 4.93b)
Gross Margin = 77.40% ((Revenue TTM 4.93b - Cost of Revenue TTM 1.11b) / Revenue TTM)
Gross Margin QoQ = 77.86% (prev 76.29%)
Tobins Q-Ratio = 1.89 (Enterprise Value 23.0b / Total Assets 12.2b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 60.2m)
Taxrate = 21.49% (566.9m / 2.64b)
NOPAT = 2.07b (EBIT 2.64b * (1 - 21.49%))
Current Ratio = 4.22 (Total Current Assets 8.58b / Total Current Liabilities 2.03b)
Debt / Equity = 0.01 (Debt 60.2m / totalStockholderEquity, last quarter 9.97b)
Debt / EBITDA = -2.75 (Net Debt -7.66b / EBITDA 2.79b)
Debt / FCF = -3.91 (Net Debt -7.66b / FCF TTM 1.96b)
Total Stockholder Equity = 9.50b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.92% (Net Income 2.07b / Total Assets 12.2b)
RoE = 21.79% (Net Income TTM 2.07b / Total Stockholder Equity 9.50b)
RoCE = 27.67% (EBIT 2.64b / Capital Employed (Equity 9.50b + L.T.Debt 31.9m))
RoIC = 20.90% (NOPAT 2.07b / Invested Capital 9.91b)
WACC = 10.43% (E(30.6b)/V(30.7b) * Re(10.45%) + D(60.2m)/V(30.7b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 10.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -84.83 | Cagr: -1.90%
[DCF] Terminal Value 71.55% ; FCFF base≈1.86b ; Y1≈2.13b ; Y5≈3.13b
[DCF] Fair Price = 159.2 (EV 34.5b - Net Debt -7.66b = Equity 42.1b / Shares 264.6m; r=10.43% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 96.91 | EPS CAGR: 7.71% | SUE: 1.83 | # QB: 1
Revenue Correlation: 99.17 | Revenue CAGR: 3.58% | SUE: 1.90 | # QB: 5
EPS current Quarter (2026-07-31): EPS=1.48 | Chg30d=+0.00% | Revisions=+8% | Analysts=26
EPS next Quarter (2026-10-31): EPS=0.88 | Chg30d=+0.00% | Revisions=+55% | Analysts=8
EPS current Year (2027-01-31): EPS=6.08 | Chg30d=+0.00% | Revisions=+77% | GrowthEPS=+2.6% | GrowthRev=+4.6%
EPS next Year (2028-01-31): EPS=6.30 | Chg30d=+0.00% | Revisions=+69% | GrowthEPS=+3.6% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +60% (up=68, down=16)