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Zoom Communications, Inc. (ZM)

POSITIVE
TechnologySoftware - ApplicationUnited States

Price

$96.07

Market Cap

$28.17B

Fundamental

64

Technical

85

Composite

70

AI Analysis

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Overview

Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.

Balance Sheet & Liquidity

Revenue

$1.24B

Net Income

$426M

Free Cash Flow

$41M

Total Equity

$9.97B

Total Liabilities

$2.19B

Current Ratio

4.22

Interest Coverage

-

Debt/EBITDA

7.06

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Undervalued

Fair Value

$145.03

Current Price

$96.07

Margin of Safety

+33.8%

Fair Value Range

$94.27 - $195.79

Estimation Methods

Analyst Target:$115.00
DCF:$196.97
PE-based:$101.54
Graham Growth:$317.88
EPV:$30.54
Analyst Consensus:Buy (23B / 15H / 1S)
Last Earnings Surprise:+6.16%

Valuation Metrics

P/E Ratio

66.26

ROE

4.3%

P/B Ratio

2.83

P/FCF

688.87

Gross Margin

77.9%

ROIC

2.4%

Value Creation (Economic Moat)

ROIC

2.4%

WACC

9.5%

ROIC − WACC

-7.1 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 14.62%
  • Price CAGR 5.05%
  • Gross Margin 77.9%
  • P/B Ratio 2.83
  • Debt/Equity ratio
  • Operating Margin 25.1%
  • Positive Free Cash Flow
  • Current Ratio
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 21.8%
  • Revenue Growth 5Y 12.9%
  • Analyst Consensus 59% Buy
  • Earnings Surprise avg 2.9%
  • PEG Ratio 0.59
  • Earnings Quality (OCF/NI) 1.23
  • Share Dilution -2.4%
  • Piotroski F-Score 5/9

Failed (7)

  • ROIC 2.4%
  • P/FCF 688.87
  • CapEx intensity
  • Debt/EBITDA
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Net Margin Trend 34.4% vs 39.0%

Unavailable (2)

  • Dividend Payout NaN%
  • Interest Coverage

Price Chart

Technical Indicators

RSI (14)

60.82

SMA 50

$93.06

SMA 200

$88.03

MACD

0.86

Volatility

2.4%

Momentum (12m)

29.7%

RSI 60.8, SMA trend bullish, momentum 29.7%.

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.23

High quality: earnings backed by cash

Share Dilution

-240.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Eric S. YuanFounder, President, CEO & Chairman55
Ms. Michelle ChangChief Financial Officer50
Mr. Velchamy SankarlingamPresident of Product & Engineering56
Ms. Kimberly J. McGarryChief Accounting Officer73
Mr. Xuedong HuangChief Technology Officer-
Mr. Gary J. SorrentinoGlobal Chief Information Officer-
Charles EveslageHead of Investor Relations-
Ms. Cheree McAlpineChief Legal Officer & Secretary-
Mr. Graeme GeddesChief Sales & Growth Officer-
Ms. Kimberly StorinChief Marketing Officer-

Audit Risk

6

Board Risk

9

Compensation Risk

5

Shareholder Rights Risk

10

Latest News

Recent headlines for ZM, sourced from Markets Gazette.

  • 5/22/2026POSITIVE
    Zoom Jumps on Sales Forecast Topping Estimates

    Zoom Video Communications Inc. experienced a significant share price increase following the company's upward revision of its full-year financial outlook. The company now anticipates higher adjusted earnings and revenue than previously projected, exceeding market expectations. This positive development led to an analyst upgrade from KeyBanc and increased price targets from RBC and Baird. The company's CFO, Michelle Chang, is scheduled to discuss these projections. For investors, this forecast beat suggests strong underlying business momentum and potential for continued growth, making Zoom an attractive prospect.

  • 5/22/2026POSITIVE
    Zoom's AI Bet Pays Off: Paid Companion Users Explode 184% In Beat-And-Raise Quarter

    Zoom Communications Inc. reported a stellar Q1, with its AI-powered companion user base surging 184%. This significant growth in its new AI offering, coupled with an upbeat fiscal year 2027 outlook, has prompted analysts to maintain their 'Buy' ratings and increase price targets. The company's strategic pivot towards AI integration appears to be resonating strongly with users and investors alike, signaling a robust future revenue stream and enhanced competitive positioning in the video conferencing and collaboration market.

  • 5/21/2026NEUTRAL
    Zoom Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

    Zoom Communications (ZM) is set to announce its Q1 earnings on May 21st, with analysts projecting an Earnings Per Share (EPS) of $1.42 and revenue of $1.22 billion. The stock experienced a modest 2.1% increase on Wednesday leading up to the announcement. While analyst ratings from March 2022 show a mix of actions including a downgrade from Outperform to Peer Perform by Wolfe Research, RBC Capital maintained an Outperform rating, and Wells Fargo kept an Equal-Weight rating. Investors will be closely watching the earnings call for forward guidance and any significant shifts in user growth or enterprise adoption trends.

  • 3/19/2026NEUTRAL
    Zoom, Ross Stores And A Big Bank On CNBC's 'Final Trades'

    Zoom Communications Inc. saw its shares close up 0.6% at $76.43 on Wednesday. Concurrently, Citigroup Inc. finished the trading session with a 0.9% gain, settling at $108.67. This news highlights the performance of individual stocks mentioned in CNBC's 'Final Trades' segment, providing a snapshot of their recent market activity without indicating a specific directional catalyst or significant market-moving event for either company.

  • 2/25/2026NEGATIVE
    Zoom Gives Weaker Profit Outlook in Push to Expand Product Suite

    Zoom Communications Inc. recently disappointed analysts by issuing a profit outlook that fell short of market estimates. This downward revision points to higher operating costs, particularly as the company aggressively pushes its expanded suite of products. For investors, this implies potential pressure on profit margins in the short to medium term, despite efforts to diversify its offerings. The news could foster caution in the market, prompting a re-evaluation of the company's future growth and profitability prospects within a competitive landscape.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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