(ZM) Zoom Video Communications - NASDAQ
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 29.798m USD | Total Return: 21% in 12m
Avg Turnover: 479M
EPS Trend: 47.7%
Qual. Beats: 17
Rev. Trend: 99.2%
Qual. Beats: 5
Warnings
Below Avwap Earnings
Tailwinds
Idiosyncratic Leader
Zoom Communications, Inc. operates an AI-driven communications platform providing video, voice, chat, and content-sharing tools across global markets. Its core product suite includes Zoom Meetings, Zoom Phone, and Zoom Team Chat, supported by collaborative tools like Zoom Whiteboard and Zoom Docs. The company also offers specialized enterprise solutions such as Zoom Contact Center, Zoom Revenue Accelerator, and the Workvivo employee experience platform.
Operating within the Application Software sector, Zoom utilizes a Software-as-a-Service (SaaS) business model, which typically prioritizes recurring subscription revenue and high scalability. The company serves a diverse range of industries, including finance, healthcare, and government, by integrating its platform with third-party applications through the Zoom Developer Platform.
Reviewing recent performance metrics on ValueRay can help determine how these product expansions impact long-term valuation.
- Enterprise customer growth offsets slowing demand in the small business segment
- Zoom Phone and Contact Center adoption drives multi-product revenue expansion
- Artificial Intelligence integration increases platform stickiness and per-user average revenue
- Competition from Microsoft Teams and Google Meet pressures long-term market share
- Margin expansion depends on efficient cloud infrastructure and sales force productivity
| 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 (1.32b): -5.79 < 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: 0.10 (EBIT TTM 1.19b / Avg Total Assets 11.6b) |
| D: 4.55 (Book Value of Equity 9.97b / Total Liabilities 2.19b) |
| Altman-Z'' = 10.64 = 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 June 13, 2026, the stock is trading at USD 93.68 with a total of 3,244,420 shares traded.
Over the past week, the price has changed by -7.81%,
over one month by -9.01%,
over three months by +25.01% and
over the past year by +21.02%.
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 | 113.9 | 21.6% |
P/E Trailing = 14.9661
P/E Forward = 16.0772
P/S = 6.0405
P/B = 2.9884
P/EG = 4.2142
Revenue TTM = 4.93b USD
EBIT TTM = 1.19b USD
EBITDA TTM = 1.32b 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 = 22.1b USD (29.8b + Debt 60.2m - CCE 7.72b)
Interest Coverage Ratio = unknown (Ebit TTM 1.19b / Interest Expense TTM 0.0)
EV/FCF = 11.29x (Enterprise Value 22.1b / FCF TTM 1.96b)
FCF Yield = 8.86% (FCF TTM 1.96b / Enterprise Value 22.1b)
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 = 1.82 (Enterprise Value 22.1b / Total Assets 12.2b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 60.2m)
Taxrate = 21.49% (566.9m / 2.64b)
NOPAT = 936.3m (EBIT 1.19b * (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 = -5.79 (Net Debt -7.66b / EBITDA 1.32b)
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 = 12.51% (EBIT 1.19b / Capital Employed (Equity 9.50b + L.T.Debt 31.9m))
RoIC = 9.45% (NOPAT 936.3m / Invested Capital 9.91b)
WACC = 10.22% (E(29.8b)/V(29.9b) * Re(10.24%) + D(60.2m)/V(29.9b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 10.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -60.0 | Cagr: -1.90%
[DCF] Terminal Value 72.17% ; FCFF base≈1.86b ; Y1≈2.13b ; Y5≈3.13b
[DCF] Fair Price = 162.9 (EV 35.4b - Net Debt -7.66b = Equity 43.1b / Shares 264.6m; r=10.22% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 47.72 | EPS CAGR: 6.24% | SUE: 1.20 | # QB: 17
Revenue Correlation: 99.17 | Revenue CAGR: 3.58% | SUE: 1.90 | # QB: 5
EPS current Quarter (2026-07-31): EPS=1.48 | Chg30d=+0.07% | Revisions=+8% | Analysts=26
EPS next Quarter (2026-10-31): EPS=0.88 | Chg30d=+1.11% | Revisions=+50% | Analysts=8
EPS current Year (2027-01-31): EPS=6.08 | Chg30d=+3.49% | Revisions=+74% | GrowthEPS=+2.6% | GrowthRev=+4.6%
EPS next Year (2028-01-31): EPS=6.30 | Chg30d=+2.60% | Revisions=+66% | GrowthEPS=+3.6% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +74%