Zoom Video Communications
Market Cap
US$93.8b
Last Updated
2021/04/16 23:17 UTC
Data Sources
Company Financials +
Executive Summary
Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has Zoom Video Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ZM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: ZM's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
ZM
2.3%
US Software
1.3%
US Market
1 Year Return
119.9%
ZM
56.0%
US Software
53.9%
US Market
Return vs Industry: ZM exceeded the US Software industry which returned 58.7% over the past year.
Return vs Market: ZM exceeded the US Market which returned 57.5% over the past year.
Shareholder returns
| ZM | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 2.3% | 1.3% |
| 30 Day | -2.0% | 8.1% | 3.3% |
| 90 Day | -14.2% | 12.0% | 8.9% |
| 1 Year | 119.9%119.9% | 57.1%56.0% | 56.6%53.9% |
| 3 Year | n/a | 146.1%138.6% | 64.4%53.6% |
| 5 Year | n/a | 329.4%305.3% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Zoom Video Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Calculating The Fair Value Of Zoom Video Communications, Inc. (NASDAQ:ZM)1 month ago | Simply Wall St
The Zoom Video Communications (NASDAQ:ZM) Share Price Has Gained 224%, So Why Not Pay It Some Attention?1 month ago | Simply Wall St
The Trend Of High Returns At Zoom Video Communications (NASDAQ:ZM) Has Us Very InterestedValuation
Is Zoom Video Communications undervalued compared to its fair value and its price relative to the market?
10.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ZM ($332.38) is trading below our estimate of fair value ($365.71)
Significantly Below Fair Value: ZM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ZM is poor value based on its PE Ratio (140.5x) compared to the US Software industry average (54.3x).
PE vs Market: ZM is poor value based on its PE Ratio (140.5x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: ZM is poor value based on its PEG Ratio (10.2x)
Price to Book Ratio
PB vs Industry: ZM is overvalued based on its PB Ratio (25.3x) compared to the US Software industry average (8.9x).
Future Growth
How is Zoom Video Communications forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
13.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZM's forecast earnings growth (13.8% per year) is above the savings rate (2%).
Earnings vs Market: ZM's earnings (13.8% per year) are forecast to grow slower than the US market (18.4% per year).
High Growth Earnings: ZM's earnings are forecast to grow, but not significantly.
Revenue vs Market: ZM's revenue (21.7% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: ZM's revenue (21.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZM's Return on Equity is forecast to be low in 3 years time (15.9%).
Past Performance
How has Zoom Video Communications performed over the past 5 years?
95.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZM has high quality earnings.
Growing Profit Margin: ZM's current net profit margins (25.3%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: ZM's earnings have grown significantly by 95.8% per year over the past 5 years.
Accelerating Growth: ZM's earnings growth over the past year (2945.7%) exceeds its 5-year average (95.8% per year).
Earnings vs Industry: ZM earnings growth over the past year (2945.7%) exceeded the Software industry 16.3%.
Return on Equity
High ROE: ZM's Return on Equity (17.4%) is considered low.
Financial Health
How is Zoom Video Communications's financial position?
Financial Position Analysis
Short Term Liabilities: ZM's short term assets ($4.8B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: ZM's short term assets ($4.8B) exceed its long term liabilities ($177.3M).
Debt to Equity History and Analysis
Debt Level: ZM is debt free.
Reducing Debt: ZM had no debt 5 years ago.
Debt Coverage: ZM has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ZM has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Zoom Video Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ZM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ZM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ZM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ZM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ZM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Eric Yuan (49 yo)
9.83yrs
Tenure
US$320,826
Compensation
Mr. Eric S. Yuan is the Founder of Zoom Video Communications, Inc. and serves as its Chairman of the board, President and Chief Executive Officer since June 2011 and also serves as its Secretary. Mr. Yuan ...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD320.83K) is below average for companies of similar size in the US market ($USD11.02M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ZM's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
Experienced Board: ZM's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.
Top Shareholders
Company Information
Zoom Video Communications, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Zoom Video Communications, Inc.
- Ticker: ZM
- Exchange: NasdaqGS
- Founded: 2011
- Industry: Application Software
- Sector: Software
- Market Cap: US$93.768b
- Shares outstanding: 293.71m
- Website: https://www.zoom.us
Number of Employees
Location
- Zoom Video Communications, Inc.
- 55 Almaden Boulevard
- 6th Floor
- San Jose
- California
- 95113
- United States
Listings
Biography
Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 23:17 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2021/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.