ZM
Technology · Software - Application
Performance
ZM (ZM) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
ZM (ZM) operates in the Software - Application space within the Technology sector. With a market cap of $27.6B, it qualifies as a mid-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.
- Low P/E of 13.9× suggests the stock may be undervalued relative to earnings
- Revenue growth of 6% YoY shows solid business momentum
- Earnings grew 74% YoY — bottom-line is expanding fast
- Exceptional profit margin of 42.0% — the business retains a large share of each dollar earned
- ROE of 21.9% shows management efficiently converts equity into profit
- Current ratio of 4.2× — ample short-term liquidity
- No dividend history — total return depends entirely on price appreciation
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
This stock does not pay dividends.
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Aug 20, 2026
65
days
EPS (TTM)
$6.79
P/E (TTM)
13.9
Fwd P/E
15.0
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $94.25
Graham Number
√(22.5 × EPS × Book Value)
$71.21
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
7/10
88% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
21.9%Return on equity — measures how efficiently capital is used
Positive profit margin
42.0%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+5.5%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+74.2%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
0.60×Low financial leverage reduces risk of distress
Current ratio above 1
4.22×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$432M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Related Assets
Technology
About ZM
Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.
Sector
Technology
Industry
Software - Application
Location
San Jose, United States
Employees
7,438