Zoom Video Communications, Inc.

  • Market Cap: Mid Cap
  • Industry: Software Products
  • ISIN: US98980L1017
USD
101.30
0.66 (0.66%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Splunk, Inc.
HubSpot, Inc.
MongoDB, Inc.
Zoom Video Communications, Inc.
Datadog, Inc.
Veeva Systems, Inc.
Atlassian Corp.
ANSYS, Inc.
Take-Two Interactive Software, Inc.
Fidelity National Information Services, Inc.
Fair Isaac Corp.

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
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Zoom Video Communications, Inc. should be less than 10%
  2. 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%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

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%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

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%
stock-recommendationTechnicals

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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 years
MOJO 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 periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio