NasdaqGS:ZM

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Zoom Video Communications

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


Snowflake Analysis

Flawless balance sheet with high growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

ZM

-2.2%

US Software

-1.4%

US Market


1 Year Return

695.4%

ZM

59.2%

US Software

17.8%

US Market

Return vs Industry: ZM exceeded the US Software industry which returned 64% over the past year.

Return vs Market: ZM exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

ZMIndustryMarket
7 Day-4.3%-2.2%-1.4%
30 Day4.2%4.9%4.7%
90 Day108.1%13.1%8.2%
1 Year695.4%695.4%60.3%59.2%20.5%17.8%
3 Yearn/a146.5%138.3%42.2%32.7%
5 Yearn/a254.9%234.2%83.4%62.7%

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

Valuation

Is Zoom Video Communications undervalued compared to its fair value and its price relative to the market?

622.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZM ($513.19) is trading above our estimate of fair value ($210.76)

Significantly Below Fair Value: ZM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZM is poor value based on its PE Ratio (622.1x) compared to the US Software industry average (63.2x).

PE vs Market: ZM is poor value based on its PE Ratio (622.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: ZM is poor value based on its PEG Ratio (30.3x)


Price to Book Ratio

PB vs Industry: ZM is overvalued based on its PB Ratio (121.7x) compared to the US Software industry average (7.4x).


Next Steps

Future Growth

How is Zoom Video Communications forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZM's forecast earnings growth (20.6% per year) is above the savings rate (2.2%).

Earnings vs Market: ZM's earnings (20.6% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZM's revenue (26.4% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: ZM's revenue (26.4% 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 high in 3 years time (28.6%)


Next Steps

Past Performance

How has Zoom Video Communications performed over the past 5 years?

105.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZM has high quality earnings.

Growing Profit Margin: ZM's current net profit margins (17%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: ZM's earnings have grown significantly by 105.8% per year over the past 5 years.

Accelerating Growth: ZM's earnings growth over the past year (4501.7%) exceeds its 5-year average (105.8% per year).

Earnings vs Industry: ZM earnings growth over the past year (4501.7%) exceeded the Software industry 12.8%.


Return on Equity

High ROE: ZM's Return on Equity (19.2%) is considered low.


Next Steps

Financial Health

How is Zoom Video Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ZM's short term assets ($2.2B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: ZM's short term assets ($2.2B) exceed its long term liabilities ($138.8M).


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


Next Steps

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?

1.2yrs

Average management tenure


CEO

Eric Yuan (50 yo)

9.33yrs

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 ($USD320.83K) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Yuan
Founder9.33yrsUS$320.83k15.23%
$ 22.2b
Kelly Steckelberg
Chief Financial Officer2.92yrsUS$408.53k0.00049%
$ 715.2k
Ryan Azus
Chief Revenue Officer1.17yrsUS$28.90m0.015%
$ 22.6m
Aparna Bawa
COO, Secretary & Interim Chief Legal Officer0.42yrUS$1.79m0.066%
$ 96.9m
Shane Crehan
Principal Accounting Officer0.083yrno datano data
Brendan Ittelson
Chief Technology Officer0.75yrno datano data
Harry Moseley
Global Chief Information Officer2.58yrsno datano data
Tom McCallum
Head of Investor Relationsno datano datano data
Lynn Haaland
Chief Compliance & Ethics Officer0.50yrno datano data
Janine Pelosi
Chief Marketing Officer1.58yrsUS$2.15m0.00049%
$ 715.2k
Lynne Oldham
Chief People Officerno datano datano data
Nick Chong
Head of Global Support & Servicesno datano datano data

1.2yrs

Average Tenure

45.5yo

Average Age

Experienced Management: ZM's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eric Yuan
Founder9.33yrsUS$320.83k15.23%
$ 22.2b
Sachin Deshpande
Board Observerno datano datano data
Bart Swanson
Independent Director7.17yrsno data0.012%
$ 17.2m
Daniel Scheinman
Lead Independent Directorno dataUS$50.63k0.97%
$ 1.4b
Carl Eschenbach
Independent Director3.92yrsno data0.023%
$ 33.6m
Jonathan Chadwick
Independent Director3.08yrsUS$37.50k0.095%
$ 138.6m
Peter Gassner
Independent Director5yrsUS$119.18k0.42%
$ 618.1m
Santiago Subotovsky
Independent Director5.83yrsno data0.077%
$ 112.8m
Kimberly Hammonds
Independent Director2.08yrsUS$25.13k0%
$ 0
Herbert McMaster
Independent Director0.42yrno data0.00012%
$ 175.2k

4.5yrs

Average Tenure

54yo

Average Age

Experienced Board: ZM's board of directors are considered experienced (4.5 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 4%.


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$145.962b
  • Shares outstanding: 284.42m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZMNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2019
ZOOMWBAG (Wiener Boerse AG)YesClass A Common StockATEURApr 2019
0A1OLSE (London Stock Exchange)YesClass A Common StockGBUSDApr 2019
5ZMDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2019
ZM *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2019
Z1OM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 25 REPR 1 COM NPVBRBRLOct 2020

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’s product portfolio includes Zoom Meetings ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:39
End of Day Share Price2020/10/21 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.