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ZM

ZM

Technology · Software - Application

$94.25+0.61%
Mkt Cap: $27.64B

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.

Bull Case6
  • 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
Bear Case1
  • 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 Claude

AI-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

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$27.64B
P/E Ratio13.88
Forward P/E14.96
P/B Ratio
PEG Ratio4.21
EPS (TTM)$6.79

Trading

Open
Day High
Day Low
52W High$114.74
52W Low$69.15
Volume
Avg Volume (3M)4,580,668
Beta0.99

Dividends

Dividend Yield
Annual Rate
Ex-Div Date
Payout Ratio0.00%

Profitability

Profit Margin41.99%
Operating Margin25.06%
ROE21.95%
ROA6.55%
Revenue Growth5.50%
Earnings Growth74.20%

Balance Sheet

Total Revenue$4.93B
Total Debt$60.21M
Debt / Equity0.60
Current Ratio4.22
Free Cash Flow$1.98B

Fair Value Estimates

Current price: $94.25

Graham Number

√(22.5 × EPS × Book Value)

$71.21

-24.4% downside

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/day

High 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