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ZM

Strong BuyAPPROVE

Zoom Communications, Inc. · Technology · United States · $28.7B · Avg Vol: $326M/d

94
StockRank
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Q
81
V
61
M
57
P/E (TTM)
9.4x
ROE
21.9%
D/E
0.0x
Dividend %
AI CONVICTION THESIS

Zoom Communications runs a high-gross-margin business with a large net-cash position, strong free cash flow and an active repurchase programme recorded in our feed, which is consistent with its Q81 score. The trivial insider selling reads as routine plan activity. No adverse accounting, distress or governance issue is known.

COMPANY DESCRIPTION

Zoom Video Communications, Inc. provides a unified, cloud-native communications platform that integrates video, voice, chat, and content sharing across various devices. The company established a ubiquitous global brand and a strong market position through its frictionless user experience and high-quality video architecture. Its current growth strategy and competitive moat focus on expanding its enterprise ecosystem with Zoom Phone, AI-driven productivity tools, and contact center solutions.

FINANCIAL SUMMARY (USD)

Year2023202420252026CAGRTTM2027E2028EFwd CAGR
Revenue4.4B4.5B4.7B4.9B3.5%4.9B5.1B5.3B4.3%
EPS0.352.123.286.32162.4%10.016.496.733.2%
Shares293.8M307.6M305.7M295.5M+0.6%264.6M
Debt96.5M73.0M64.4M58.5M-15.4%60.2M
Equity6.2B8.0B8.9B9.8B16.5%
Op CF1.3B1.6B1.9B2.0B15.5%2.0B
Inv CF-318.3M-1.2B-1.1B-278.9M
Fin CF-936.9M60.2M-1.0B-1.8B
Loading 1Y...
PRICE (1Y)+8.3%
84.1190.5496.97103110Jul 20Aug 10Aug 28
SMA 50SMA 200

Close
$98.43
RSI (14)
38.7
52W High
$114.74
From 52W High
0.9%

SCORE BREAKDOWN

Quality
81
ROIC
12.0%68.8
ROE
21.9%83.3
GP/Assets
32.1%70.5
Op. Margin
25.1%88.1
FCF/Assets
16.4%90.9
Piotroski
780.7
Int. Cover
50.0x84.8
D/E Ratio
0.01x89.7
Current Ratio
4.22x83.5
Value
61
P/E (TTM)
9.4x92.4
EV/EBITDA
16.4x54.1
P/FCF
14.6x76.5
P/B
2.8x53.2
P/S
5.6x32.2
Div Yield
N/A
Momentum
57
52W High %
86%82.9
RS 6M
20%72.4
SMA 50/200
1.05x57.7
EPS Rev 4W
+0.6%30.7
EPS Rev 12W
+0.7%46.4
EPS Improve
-37%7.3
Q Growth
67%64.2

FUNDAMENTALS

Market Cap
$28.7B
P/E (Forward)
14.8x
Gross Margin
77.8%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of ZM are excluded.

TickerCompanyMkt CapStockRankSignal
ZMZoom Communications, Inc.(you)$28.7B94Strong Buy
ADSK.MXAutodesk, Inc.$53.9B92Strong Buy
SSNCSS&C Technologies Holdings, Inc.$19.6B79Buy
PTCPTC Inc.$17.1B82Strong Buy
PAYCPaycom Software, Inc.$10.8B90Strong Buy
ROPRoper Technologies, Inc.$42.2B76Buy
PCTYPaylocity Holding Corporation$8.7B91Strong Buy
ADBE34.SAAdobe Inc.$108.7B95Strong Buy
CDNS.MXCadence Design Systems, Inc.$86.7B88Strong Buy
MANHManhattan Associates, Inc.$13.0B81Strong Buy

Peer medians: ROE 7.5% · P/E 37.0x · Gross margin 54.1%

Zoom Communications, Inc. (ZM): Stock Score Summary

Zoom Communications, Inc. (ZM) has a MoatMap StockRank of 94/100 based on Quality (81/100), Value (61/100), and Momentum (57/100) factor scores. The current signal is STRONG BUY. Zoom Communications runs a high-gross-margin business with a large net-cash position, strong free cash flow and an active repurchase programme recorded in our feed, which is consistent with its Q81 score. The trivial insider selling reads as routine plan activity. No adverse accounting, distress or governance issue is known.

Zoom Video Communications, Inc. provides a unified, cloud-native communications platform that integrates video, voice, chat, and content sharing across various devices. The company established a ubiquitous global brand and a strong market position through its frictionless user experience and high-quality video architecture. Its current growth strategy and competitive moat focus on expanding its enterprise ecosystem with Zoom Phone, AI-driven productivity tools, and contact center solutions.

Key Financial Metrics

Price$98.43
Market Cap$28.7B
P/E (TTM)9.37
P/E (Forward)14.80
Price/Book2.76
Return on Equity21.9%
Return on Invested Capital12.0%
Debt/Equity0.01x
Gross Margin77.8%
Operating Margin25.1%
Revenue Growth5.5%
Free Cash Flow$2.0B

Zoom Communications, Inc. operates in the Software - Application industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Zoom Communications, Inc.’s (ZM) StockRank?
MoatMap’s StockRank for Zoom Communications, Inc. (ZM) is 94/100, with a Strong Buy signal. It is a composite of Quality (81), Value (61), and Momentum (57) factor ranks across MoatMap’s 20,000+ stock universe.
Does Zoom Communications, Inc. have an economic moat?
Zoom Communications, Inc. (ZM) has a Quality factor score of 81/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Zoom Communications, Inc. a buy, hold, or sell?
MoatMap’s current signal for Zoom Communications, Inc. (ZM) is Strong Buy, based on a StockRank of 94/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Zoom Communications, Inc. in?
Zoom Communications, Inc. (ZM) operates in the Technology sector, specifically the Software - Application industry (United States).