Why 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 67.19%, the company declared Very Positive results in Apr 26
- The company has declared positive results for the last 11 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 2,021.4 MM
- ROCE(HY) Highest at 21.95%
- RAW MATERIAL COST(Y) Fallen by -2.07% (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 38.44%, its profits have risen by 78.5% ; the PEG ratio of the company is 0.2
How 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.
38.44%
1.38
44.27%
S&P 500
21.51%
1.63
13.19%
Quality 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%
Valuation 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%
Technical 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 Movement
14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,021.4 MM
ROCE(HY)
Highest at 21.95%
RAW MATERIAL COST(Y)
Fallen by -2.07% (YoY
PRE-TAX PROFIT(Q)
At USD 531.62 MM has Grown at 68.36%
NET PROFIT(Q)
At USD 425.68 MM has Grown at 67.19%
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -77.23 %
Here's what is working for Zoom Video Communications, Inc.
Operating Cash Flow
Highest at USD 2,021.4 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 531.62 MM has Grown at 68.36%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 425.68 MM has Grown at 67.19%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -2.07% (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 -77.23 % 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






