Last Updated: 08 Nov 2024
Executive Summary
Zoom Video Communications Inc. (ZM) is a leading provider of video communications platform. The company has experienced strong growth in recent years, driven by the increasing adoption of video conferencing. ZM reported a 21% revenue growth in the latest quarter, with an EPS of $2.8. The company has a strong financial position, with positive EBITDA and a healthy profit margin. Analysts expect ZM to continue to grow in the future, and the current stock price of $80.19 is below the analyst target price of $76.09.
Company Overview
ZM is headquartered in San Jose, California, and provides a video communications platform that enables users to conduct video conferences, webinars, and other online meetings. The company's platform is used by businesses, governments, and individuals around the world. ZM has a strong customer base, with over 500,000 paying customers.
Fundamental Analysis
ZM has a strong financial position. The company reported revenue of $4.59 billion in the latest fiscal year, with a net income of $853.3 million. The company has a positive EBITDA of $853.3 million and a profit margin of 19.1%. ZM also has a healthy balance sheet, with total assets of $10.2 billion and total liabilities of $4.3 billion.
ZM's financial ratios are also strong. The company has a PE ratio of 28.64, a PEG ratio of 3.25, and a price-to-sales ratio of 5.22. These ratios are all below the industry average, indicating that ZM is undervalued.
Technical Analysis
ZM's stock price has been in a downtrend since November 2021. The stock price has fallen from a high of $80.47 to a low of $55.06. The stock price is currently trading at $80.19, which is below the 50-day and 200-day moving averages.
The technical indicators are also bearish. The relative strength index (RSI) is below 50, indicating that the stock is oversold. The moving average convergence divergence (MACD) is also below the signal line, indicating that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for ZM is bearish. The stock price is in a downtrend, and the technical indicators are bearish. The stock price is likely to continue to fall in the short term.
Long Term Outlook
The long-term outlook for ZM is bullish. The company has a strong financial position and a growing customer base. The company is also well-positioned to benefit from the increasing adoption of video conferencing. The stock price is likely to recover in the long term.
Analyst Recommendations
Analysts have a bullish outlook on ZM. The consensus analyst rating is "Buy". The average analyst target price is $76.09, which is above the current stock price.
