ZM · Nasdaq · Technology
Zoom Communications, Inc. (ZM) — Rank #237 by gross profitability (GP/assets 0.28) · ROE 16.8% · Piotroski F-Score 6 / 9.
As-of 2026-10-30 · CIK 0001585521 · all metrics point-in-time as of the filing date.
About
Zoom Communications, Inc. provides an Artificial Intelligence-first open work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
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The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024.
The company was incorporated in 2011 and is headquartered in San Jose, California.
- Industry
- Software - Application
- Sector
- Technology
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- January 31
- Website
- zoom.com
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
7,438
Industry
Software - Application
Exchange
Nasdaq
12/12
Flags passed
ZM passes 12/12 quality flags
- PASSGross margin holding
- PASSDilution within 2%
- PASSFCF not negative from investment
- PASSDisclosure consistent
- PASSRevenue not declining
- PASSOperating margin holding
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passFCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Does it make money well?
No warning flags · GP/assets 0.28
Gross profitability (GP / assets)
0.28
Primary signal (Novy-Marx).
10th of 15 SIC 7370 peers
Return on equity
16.8%
Gross margin
77.0%
6th of 15 SIC 7370 peers
Revenue growth (YoY)
4.4%
RPO growth (YoY)
10.1%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
3.5%
Revenue CAGR (5Y)
12.9%
Earnings CAGR (3Y)
163.6%
FCF CAGR (3Y)
17.5%
Cash Flow Health
Is the cash real?
No warning flags · FCF 1% above net income
Free cash flow
$1.92B
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
1.3%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
15.6%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
No warning flags · net cash $11.04B, F-Score 6/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.20
2nd of 14 SIC 7370 peers (best = lowest)
Current ratio
3.83×
5th of 15 SIC 7370 peers
Quick ratio
3.67×
Net cash
$11.04B
Cash & equivalents minus total debt.
Piotroski F-Score
6 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
4.0 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports