Stock Analysis
Zoom Communications, Inc. Class A Common StockZM
P/E 8.44×· 5Y range 7.84–4,089.55×· bottom 1% of history
Sector: Technology · Industry: Services-Computer Programming, Data Processing, Etc.
AnalystsBuy39 analystsP/E 8.4× sits at the 1st percentile of its 5.086926762491444-year history.
PMP Verdict
Mixed fundamentals, cheap valuation
Strengths
- Profitability95
- Financial Health68
Risks
- Growth30
Mixed business trading cheap — priced for skepticism.
Market context
-4.4% today· Z 2.5σ· Zoom shares declined 4.69% amid lingering concerns over stock valuation despite a strong 6.7% free cash flow yield.
Bull Case
- ✓Altman Z 10.1 — safe-zone balance sheet
- ✓ROE 33.2% — efficient capital deployment
- ✓P/E 8.4× at bottom 1% of 5-year history
Why is ZM moving?
TechnicalZoom shares declined 4.69% amid lingering concerns over stock valuation despite a strong 6.7% free cash flow yield.
Profile
Strong profitability and moat; growth lags behind.
How is each axis scored?
- Valuation67/100 · Moderate
- P/E vs own history (1th pct)25/25
- FCF yield (7.0%)20/25
- P/S (5.5x)12/25
- EV/EBIT (n/a)10/25
- Growth30/100 · Weak
- Revenue CAGR (4.4%)6/25
- Net income CAGR (8.4%)12/25
- EPS CAGR 5Y (8.3%)12/25
- Fwd implied growth (-41.6%)0/25
- Profitability95/100 · Strong
- ROIC (47.0%)25/25
- ROE (33.2%)25/25
- Net margin (65.2%)25/25
- Operating margin (23.7%)20/25
- Financial Health68/100 · Moderate
- Altman Z (10.12)25/25
- Current ratio (4.33)25/25
- Interest coverage (7.6x)18/25
- Net cash / debt (n/a)0/25
- Quality62/100 · Moderate
- Piotroski F (6/9)15/25
- Beneish M (-2.35)20/25
- FCF conversion (59%)15/25
- Margin stability (σ 8.8%)12/25
- Moat87/100 · Strong
- ROIC >12% years (5/5 yrs)25/25
- Median gross margin (75.8%)25/25
- FCF-positive years (7/7 yrs)25/25
- Worst-year net margin (worst 2.4%)12/25
Risk Flags
- ⚠SBC 14.6% of revenue — real dilution cost
About Zoom Communications, Inc. Class A Common Stock
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. Show more
The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting. Zoom has launched a variety of communications-related solutions, including Zoom Phone and Zoom Contact Center. The firm was founded in 2011 and serves companies of all sizes from all industries around the world.
Headquarters: SAN JOSE, CA · Employees: 7,438 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
67BP/E (TTM)8.4xA
Grade A: CheapPrice / TTM EPS (own statements) — vs own 5Y history: 7.8x–4089.5x · 1st pct
P/FCF13.5xA
Grade A: CheapPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield7.0%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.9%–9.9% · 66th pct
P/S (TTM)5.51xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 3.8x–24.2x · 61st pct
EV/EBITDA19.1xC
Grade C: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales5.0xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E14.5xA
Grade A: CheapPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.80xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.40B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
95A+ROIC47.0%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE33.2%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA26.5%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin65.2%A
Grade A: HighNet Income / Revenue
Operating Margin23.7%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin77.3%A
Grade A: PremiumGross Profit / Revenue
FCF Margin38.6%A
Grade A: HighFCF / Revenue
True FCF Margin24.0%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
30DRevenue CAGR4.4%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR8.4%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)8.3%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth-41.6%D
Grade D: Decl.Analyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-4.5%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income22.4%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue14.6%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
68BAltman Z-Score10.12A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio4.33xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio3.73xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage7.6xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity0.00xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Quality
62BPiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.35A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion59.2%C
Grade C: AverageFCF / Net Income
Margin Stability8.8%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue1.5%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.41xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
McGarry Kimberly J Filed | McGarry Kimberly J | Tax withholding | -8692 | |
Chang Michelle Filed | Chang Michelle | SellOpen market sale | -5747 | |
Chang Michelle Filed | Chang Michelle | SellOpen market sale | -2742 | |
Sankarlingam Velchamy Filed | Sankarlingam Velchamy | SellOpen market sale | -5299 | |
Sankarlingam Velchamy Filed | Sankarlingam Velchamy | SellOpen market sale | -2346 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Chang Michelle Filed | Chang Michelle | Option exercise | -22218 | |
Chang Michelle Filed | Chang Michelle | Tax withholding | -8743 | |
Chang Michelle Filed | Chang Michelle | Option exercise | +22.2K |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
87AROIC >12% Years5/5 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)75.8%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years7/7 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor2.4%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$11.16
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$24.72
Cash & short-term investments per share (Finnhub)
Book Value / Share$38.55
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$7.82B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$9.81B
Shareholders' equity (book value)
Asset / Liability5.56xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$27.49B
Current Market Capitalization
Beta1.02B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jul 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Zoom Communications, Inc. Class A Common Stock (ZM)
ZM is down 4.39% at the last close — Zoom shares declined 4.69% amid lingering concerns over stock valuation despite a strong 6.7% free cash flow yield.. Piotroski F-Score of 6/9 indicates mixed fundamentals for Zoom Communications, Inc. Class A Common Stock. Altman Z-Score of 10.12 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk.
- Beneish M-Score of -2.35 suggests a low likelihood of earnings manipulation.
- Zoom Communications, Inc. Class A Common Stock converts about 39% of revenue into free cash flow — strong cash generation.
- Return on equity of 33.2% is well above the market average.
See how ZM ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all ZM moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 93.62 | -4.96% | -2.82 |
| Oct 16 | After-hours | 94.20 | -4.38% | -2.51 |
| Oct 14 | Regular | 94.83 | -3.39% | -2.12 |
| Oct 14 | After-hours | 93.74 | -4.50% | -2.76 |
Frequently Asked Questions about ZM
What is the current Zoom Communications, Inc. Class A Common Stock (ZM) stock price?
ZM is trading at $94.19 at the last market close, down 4.39% on the session. PreMarketPrice tracks ZM pre-market, intraday and after-hours prices.
Is ZM stock a buy right now?
PreMarketPrice's quantitative model rates Zoom Communications, Inc. Class A Common Stock's financial health at 68/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ZM stock overvalued?
Zoom Communications, Inc. Class A Common Stock trades at a trailing P/E of 8.4 and our valuation score rates it 67/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Zoom Communications, Inc. Class A Common Stock report earnings?
No confirmed earnings date is currently scheduled for ZM. The Earnings section lists recent reports and updates as dates are announced.
What sector does Zoom Communications, Inc. Class A Common Stock operate in?
Zoom Communications, Inc. Class A Common Stock operates in the Technology sector, within the Services-Computer Programming, Data Processing, Etc. industry. The Related Stocks section lists sector peers for comparison.
What does Zoom Communications, Inc. Class A Common Stock do?
Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing.
About Zoom Communications, Inc. Class A Common Stock (ZM) Stock
Zoom Communications, Inc. Class A Common Stock (ZM) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Programming, Data Processing, Etc. industry. As of the latest update, Zoom Communications, Inc. Class A Common Stock is trading at $94.19, down 4.39% on the day with a market capitalization of $27.5 billion. The financial health score for ZM is 68/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ZM stock.
ZM Stock Analysis & Key Metrics
On PreMarketPrice, you can track Zoom Communications, Inc. Class A Common Stock (ZM) across multiple dimensions:
- Pre-market price & movement: Real-time ZM stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ZM with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Zoom Communications, Inc. Class A Common Stock across multiple reporting periods.
- Financial health score: A composite score of 68/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ZM.
- Sector peers: Compare ZM against 6 other technology stocks on key financial metrics.
Is ZM a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Zoom Communications, Inc. Class A Common Stock (ZM) as an investment. The financial health score of 68/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Zoom Communications, Inc. Class A Common Stock (ZM) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.