NasdaqGS:ZM

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Zoom Video Communications

Market Cap

US$112.3b

Last Updated

2021/07/31 06:29 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


Snowflake Analysis

Flawless balance sheet with outstanding 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 +/- 5% a week.

Volatility Over Time: ZM's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

5.3%

ZM

-0.9%

US Software

-0.5%

US Market


1 Year Return

48.9%

ZM

38.4%

US Software

35.9%

US Market

Return vs Industry: ZM exceeded the US Software industry which returned 38.4% over the past year.

Return vs Market: ZM exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

ZMIndustryMarket
7 Day5.3%-0.9%-0.5%
30 Day-2.2%3.4%0.3%
90 Day18.3%11.7%3.1%
1 Year48.9%48.9%39.2%38.4%38.0%35.9%
3 Yearn/a145.2%138.6%62.9%52.7%
5 Yearn/a350.8%327.4%121.7%97.3%

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

Valuation

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

124.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZM ($378.1) is trading above our estimate of fair value ($223)

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 (124.6x) compared to the US Software industry average (50x).

PE vs Market: ZM is poor value based on its PE Ratio (124.6x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: ZM is poor value based on its PEG Ratio (7.2x)


Price to Book Ratio

PB vs Industry: ZM is overvalued based on its PB Ratio (26.6x) compared to the US Software industry average (6.7x).


Future Growth

How is Zoom Video Communications forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZM's forecast earnings growth (17.2% per year) is above the savings rate (2%).

Earnings vs Market: ZM's earnings (17.2% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: ZM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZM's revenue (18.3% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: ZM's revenue (18.3% per year) is forecast to grow slower 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 (19.6%).


Past Performance

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

90.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZM has high quality earnings.

Growing Profit Margin: ZM's current net profit margins (26.6%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: ZM's earnings have grown significantly by 90.2% per year over the past 5 years.

Accelerating Growth: ZM's earnings growth over the past year (1694.4%) exceeds its 5-year average (90.2% per year).

Earnings vs Industry: ZM earnings growth over the past year (1694.4%) exceeded the Software industry 34.2%.


Return on Equity

High ROE: ZM's Return on Equity (20.8%) is considered high.


Financial Health

How is Zoom Video Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ZM's short term assets ($5.3B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: ZM's short term assets ($5.3B) exceed its long term liabilities ($167.5M).


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 (51 yo)

10yrs

Tenure

US$949,748

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. From May ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD949.75K) is below average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in 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 (4.6 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$112.281b
  • Shares outstanding: 296.96m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 06:29
End of Day Share Price2021/07/30 00:00
Earnings2021/04/30
Annual Earnings2021/01/31


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.