ScoreWhy is Zoom Video Communications, Inc. ?
1
High Management Efficiency with a high ROE of 12.92%
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 12.92% and Operating profit at 11.23%
4
With a growth in Net Profit of 330.14%, the company declared Very Positive results in Jul 26
- The company has declared positive results for the last 12 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 2,000.21 MM
- ROCE(HY) Highest at 32.14%
- RAW MATERIAL COST(Y) Fallen by 0.52% (YoY)
5
With ROE of 19.37%, it has a very attractive valuation with a 2.33 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 8.88%, its profits have risen by 78.5% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Zoom Video Communications, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Zoom Video Communications, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zoom Video Communications, Inc.
11.29%
1.00
44.24%
S&P 500
15.76%
1.22
13.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.92%
EBIT Growth (5y)
11.23%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.87
Sales to Capital Employed (avg)
0.54
Tax Ratio
21.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
94.36%
ROCE (avg)
150.56%
ROE (avg)
12.92%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.33
EV to EBIT
13.44
EV to EBITDA
12.02
EV to Capital Employed
7.52
EV to Sales
3.10
PEG Ratio
0.16
Dividend Yield
NA
ROCE (Latest)
55.95%
ROE (Latest)
19.37%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend26What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,000.21 MM
ROCE(HY)
Highest at 32.14%
RAW MATERIAL COST(Y)
Fallen by 0.52% (YoY
NET SALES(Q)
Highest at USD 1,277.22 MM
PRE-TAX PROFIT(Q)
Highest at USD 1,994.97 MM
NET PROFIT(Q)
Highest at USD 1,542.44 MM
EPS(Q)
Highest at USD 5.15
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -63.75 %
Here's what is working for Zoom Video Communications, Inc.
Pre-Tax Profit
At USD 1,994.97 MM has Grown at 345.14%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 1,542.44 MM has Grown at 330.14%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 2,000.21 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,277.22 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 1,994.97 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,542.44 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 5.15
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by 0.52% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Zoom Video Communications, Inc.
Debt-Equity Ratio
Highest at -63.75 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income
Highest at USD 0.84 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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