ScoreWhy is Zoom Video Communications, Inc. ?
1
High Management Efficiency with a high ROE of 12.92%
2
Company has a low Debt to Equity ratio (avg) at times
3
Healthy long term growth as Net Sales has grown by an annual rate of 19.68% and Operating profit at 21.54%
4
With a growth in Net Profit of 83.24%, the company declared Very Positive results in Oct 25
- The company has declared positive results for the last 7 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 2,059.1 MM
- ROCE(HY) Highest at 17.74%
- DEBTORS TURNOVER RATIO(HY) Highest at 10.98 times
5
With ROE of 17.16%, it has a very attractive valuation with a 2.38 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 1.54%, its profits have risen by 60.1% ; 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?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Zoom Video Communications, Inc.
1.54%
0.59
36.79%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.68%
EBIT Growth (5y)
21.54%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.87
Sales to Capital Employed (avg)
0.55
Tax Ratio
21.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
86.31%
ROCE (avg)
150.56%
ROE (avg)
12.92%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
2.38
EV to EBIT
12.88
EV to EBITDA
10.85
EV to Capital Employed
10.47
EV to Sales
2.94
PEG Ratio
0.23
Dividend Yield
NA
ROCE (Latest)
81.26%
ROE (Latest)
17.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,059.1 MM
ROCE(HY)
Highest at 17.74%
DEBTORS TURNOVER RATIO(HY)
Highest at 10.98 times
RAW MATERIAL COST(Y)
Fallen by -2.68% (YoY
CASH AND EQV(HY)
Highest at USD 15,743.79 MM
NET SALES(Q)
Highest at USD 1,229.84 MM
PRE-TAX PROFIT(Q)
Highest at USD 794.71 MM
NET PROFIT(Q)
Highest at USD 612.87 MM
EPS(Q)
Highest at USD 2.01
-1What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -85.14 %
Here's what is working for Zoom Video Communications, Inc.
Operating Cash Flow
Highest at USD 2,059.1 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)
Pre-Tax Profit
At USD 794.71 MM has Grown at 183.41%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 612.87 MM has Grown at 196%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Debtors Turnover Ratio
Highest at 10.98 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at USD 1,229.84 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 794.71 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 612.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 2.01
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 15,743.79 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -2.68% (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 -85.14 %
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 0.61 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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