NasdaqGS:ZM

Stock Analysis Report

Zoom Video Communications

Executive Summary

Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.


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


Market Performance


7 Day Return

4.9%

NasdaqGS:ZM

-0.4%

US Software

0.8%

US Market


1 Year Return

n/a

NasdaqGS:ZM

13.7%

US Software

1.9%

US Market

No trading data on ZM.

No trading data on ZM.


Share holder returns

ZMIndustryMarket
7 Day4.9%-0.4%0.8%
30 Day-9.2%-1.1%3.4%
90 Day-17.3%-1.5%2.1%
1 Yearn/a15.3%13.7%4.2%1.9%
3 Yearn/a120.0%111.3%46.7%37.2%
5 Yearn/a165.8%146.3%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

2380.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Zoom Video Communications's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Zoom Video Communications's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Zoom Video Communications is overvalued based on earnings compared to the US Software industry average.

Zoom Video Communications is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Zoom Video Communications earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Zoom Video Communications is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Zoom Video Communications expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

-96.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zoom Video Communications's revenue is expected to grow significantly at over 20% yearly.

Zoom Video Communications's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Zoom Video Communications's revenue growth is expected to exceed the United States of America market average.

Zoom Video Communications's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Zoom Video Communications's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Zoom Video Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

93.0%

Last years revenue growth


Earnings and Revenue History


Past Earnings Growth Analysis

Insufficient data to establish if Zoom Video Communications's year on year earnings growth rate was positive over the past 5 years.

Zoom Video Communications has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Zoom Video Communications has become profitable in the last year making it difficult to compare the US Software industry average.


Return on Equity

Zoom Video Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zoom Video Communications used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Zoom Video Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Zoom Video Communications's financial position?


Financial Position Analysis

Zoom Video Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Zoom Video Communications's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Zoom Video Communications has no debt.

Zoom Video Communications currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Zoom Video Communications has no debt, it does not need to be covered by operating cash flow.

Zoom Video Communications has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Zoom Video Communications has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Zoom Video Communications's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Zoom Video Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Zoom Video Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Zoom Video Communications has not reported any payouts.

Unable to verify if Zoom Video Communications's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Zoom Video Communications has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Zoom Video Communications's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Zoom Video Communications's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Eric Yuan (49yo)

8.3yrs

Tenure

US$3,025,000

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

Eric's remuneration is lower than average for companies of similar size in United States of America.

Eric's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

45yo

Average Age

The average tenure for the Zoom Video Communications management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

52.5yo

Average Age

The tenure for the Zoom Video Communications board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$35,999,96425 Apr 19
Eric Yuan
EntityIndividual
Role
Chief Executive Officer
Founder
Shares999,999
Max PriceUS$36.00

Ownership Breakdown


Management Team

  • Kelly Steckelberg (51yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Harry Moseley

    Chief Information Officer

    • Tenure: 1.5yrs
  • Eric Yuan (49yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$3.03m
  • Roy Benhorin

    Chief Accounting Officer & Treasurer

    • Tenure: 0yrs
  • Aparna Bawa (41yo)

    Chief Legal Officer

    • Tenure: 1yrs
    • Compensation: US$1.79m
  • Lynne Oldham

    Chief People Officer

    • Tenure: 0yrs
  • Greg Holmes

    Head of Corporate Strategy

    • Tenure: 0yrs
    • Compensation: US$2.22m
  • Janine Pelosi (36yo)

    Chief Marketing Officer

    • Tenure: 0.5yrs
    • Compensation: US$2.15m
  • Dana Mata

    Head of Business Development

    • Tenure: 0yrs
  • Tom McCallum

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Sachin Deshpande

    Board Observer

    • Tenure: 0yrs
  • Bart Swanson (56yo)

    Director

    • Tenure: 6.1yrs
  • Dan Scheinman (56yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$724.00k
  • Carl Eschenbach (52yo)

    Director

    • Tenure: 2.8yrs
  • Jonathan Chadwick (53yo)

    Director

    • Tenure: 2yrs
  • Peter Gassner (54yo)

    Independent Director

    • Tenure: 3.8yrs
  • Santi Subotovsky (41yo)

    Director

    • Tenure: 4.8yrs
  • Kim Hammonds (52yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$861.00k
  • Eric Yuan (49yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$3.03m

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$23.153b
  • Shares outstanding: 273.55m
  • 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

Biography

Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 02:06
End of Day Share Price2019/09/17 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.