ZM Zoom Communications, Inc. - Fundamental Analysis
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ZM Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Application
Current Price
Live
$80.96
Analyst Target
$96.35
+19.0%
Upside
52W High
$91.42
52W Low
$64.41
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
AI-powered fundamental assessment
Confidence
78%
Zoom Communications exhibits strong financial health with a Piotroski F-Score of 8/9, indicating robust operational performance and balance sheet strength. Despite this, the stock trades at a significant premium to its Graham Number of $60.13, currently at $80.96, though it remains below the analyst target price of $96.35. Exceptional earnings growth (YoY EPS +204.9%) and consistent earnings beat rates (23 of 25 quarters) are offset by weak revenue growth (4.4% YoY) and negative insider sentiment, with over $52M in insider sales over the past six months. While profitability metrics are stellar, including a 33.17% net margin and minimal leverage (Debt/Equity: 0.01), the lack of Altman Z-Score and mixed technical trend temper bullishness.
Key Strengths
Exceptionally high Piotroski F-Score of 8/9 signals strong financial health and operational efficiency
Outstanding profitability with 33.17% net margin, 25.24% operating margin, and 76.89% gross margin
Very low financial leverage (Debt/Equity: 0.01) and strong liquidity (Current Ratio: 4.45)
Massive year-over-year earnings growth of 204.9% and consistent earnings surprises averaging +80.15% over the last four quarters
Superior return metrics relative to peers, including ROE of 17.74% despite declining from prior highs
Key Risks
Significant insider selling: $52.13M in net sales over last 6 months, including CEO and CFO, signaling bearish sentiment
Revenue growth is weak at only 4.4% YoY, lagging behind sector average of 19.00%, raising sustainability concerns
Stock trades at a premium to conservative fair value (Graham Number: $60.13 vs. current price $80.96)
Technical trend is bearish (0/100), with recent 1-month and 1-week price declines of -8.8% and -5.0%
Lack of Altman Z-Score prevents full assessment of bankruptcy risk, though low debt suggests low distress probability
AI Fair Value Estimate
Based on comprehensive analysis
$92.5
+14.3% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare ZM against industry averages and similar companies
Insider Trading & Analyst Ratings
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Past News Coverage
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