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Company Analysis

Zoom Communications, Inc. ZM

A comprehensive view of key metrics, scores, and financial health for Zoom Communications, Inc.

Overview of Zoom Communications Inc.

ZM NMS
Technology Software - Application Framework: Software & SaaS Large Cap
Zoom Communications Inc. (ZM), is a Large Cap company, in the Software - Application industry, last closed at $96.44, about 24.1% overvalued vs fair value, +14.8% 1Y return, ranked 262/780 in sector.
Metrics P/E 14.9× Rev Growth 4.4% ROE 20.3% Gross Margin 77.0%
USD 96.44
-4.83%
(Delayed)
• Vol 90d: 48.7%
52-Week Range
Market Cap
$26.36B
Enterprise Value
$25.48B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Good
Valuation
Good
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Good
Valuation
Good
Completeness: 88%
Confidence: 56%
Updated: Sep 12
Top Beats

Quick Facts

Website https://www.zoom.com
HQ San Jose, CA
Employees 7,438
Fiscal year Jan 31

Next Events

Earnings Aug 25 Call: Aug 25

Fair Value Snapshot

Bear Base Bull
$67
$73
$80
Current: $96.44 -24% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$4.9B
4.4%%
Gross Profit
$3.7B
6.1%%
Operating Income (GAAP)
$1.1B
38.2%%
Operating Cash Flow
$2.0B
2.2%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
77.0%
Excellent

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$1.6B
84.3% of FCF

Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
3
Active Leaks
3/3
Improving
0
High Impact
1
Critical
Locked Leak
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Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Zoom Communications, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
64
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Premium Software Margins Gross margin quality is strong versus peers (score 0.81), consistent with premium software economics.
  • Asset-Light Returns Return profile is strong (score 0.72), supporting a capital-efficient model.

Key risks

  • Contracted Demand Looks Thin Contracted demand signal is weak (score 0.38), limiting evidence of strong subscription stickiness.
  • FCF Trend Is Softening FCF trend is weak (score 0.25), suggesting cash scalability is deteriorating.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
74
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Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 90% Coverage
Trade-Off Triangle Visualization A ternary plot showing ZM's balance between Growth (22.4%), Profitability (40.1%), and Safety (37.5%). Growth 22% Safety 37% Profitability 40%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

47th percentile vs peers
47
Key Signals
Rev Growth YoY 4.4% 37p Def Rev Growth 5.7% 46p Revenue CAGR 3Y 3.5% 36p EPS Growth YoY 92.8% 75p Buyback % -3.3% 85p
Strengths
  • Rule of 40 in top 20% of peers (43.9%, 81th percentile)
  • FCF Margin in top 20% of peers (39.5%, 96th percentile)
  • Cash to Debt Ratio in top 20% of peers (21.77, 89th percentile)
  • Superior capital returns - 2 return metrics above peer median
Risks

No significant risks identified for this axis.

Profitability

84th percentile vs peers
85
Key Signals
Strengths
Risks
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Safety

79th percentile vs peers
79
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for Zoom Communications, Inc..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$73.19
- - -
-24.1% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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