Zoom Video Communications Stock Profit Margin
| ZM Stock | USD 59.94 0.86 1.46% |
Zoom Video Communications fundamentals help investors to digest information that contributes to Zoom Video's financial success or failures. It also enables traders to predict the movement of Zoom Stock. The fundamental analysis module provides a way to measure Zoom Video's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Zoom Video stock.
| Last Reported | Projected for Next Year | ||
| Net Profit Margin | 0.14 | 0.08 |
Zoom | Profit Margin |
Zoom Video Communications Company Profit Margin Analysis
Zoom Video's Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Current Zoom Video Profit Margin | 0.14 % |
Most of Zoom Video's fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Zoom Video Communications is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Zoom Profit Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for Zoom Video is extremely important. It helps to project a fair market value of Zoom Stock properly, considering its historical fundamentals such as Profit Margin. Since Zoom Video's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Zoom Video's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Zoom Video's interrelated accounts and indicators.
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
| Competition |
Zoom Pretax Profit Margin
Pretax Profit Margin |
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Based on the latest financial disclosure, Zoom Video Communications has a Profit Margin of 0.1408%. This is 110.83% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The profit margin for all United States stocks is 111.09% lower than that of the firm.
Zoom Profit Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Zoom Video's direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Zoom Video could also be used in its relative valuation, which is a method of valuing Zoom Video by comparing valuation metrics of similar companies.Zoom Video is currently under evaluation in profit margin category among related companies.
Zoom Fundamentals
| Return On Equity | 0.0896 | ||||
| Return On Asset | 0.0414 | ||||
| Profit Margin | 0.14 % | ||||
| Operating Margin | 0.10 % | ||||
| Current Valuation | 11.28 B | ||||
| Shares Outstanding | 260.9 M | ||||
| Shares Owned By Insiders | 8.84 % | ||||
| Shares Owned By Institutions | 69.32 % | ||||
| Number Of Shares Shorted | 12.67 M | ||||
| Price To Earning | 32.52 X | ||||
| Price To Book | 2.36 X | ||||
| Price To Sales | 4.19 X | ||||
| Revenue | 4.53 B | ||||
| Gross Profit | 3.29 B | ||||
| EBITDA | 519.96 M | ||||
| Net Income | 637.46 M | ||||
| Cash And Equivalents | 1.09 B | ||||
| Cash Per Share | 17.67 X | ||||
| Total Debt | 72.95 M | ||||
| Debt To Equity | 0.02 % | ||||
| Current Ratio | 3.24 X | ||||
| Book Value Per Share | 26.07 X | ||||
| Cash Flow From Operations | 1.6 B | ||||
| Short Ratio | 3.87 X | ||||
| Earnings Per Share | 2.07 X | ||||
| Price To Earnings To Growth | 4.75 X | ||||
| Target Price | 77.51 | ||||
| Number Of Employees | 7.42 K | ||||
| Beta | -0.078 | ||||
| Market Capitalization | 18.17 B | ||||
| Total Asset | 9.93 B | ||||
| Retained Earnings | 2.79 B | ||||
| Working Capital | 6.16 B | ||||
| Net Asset | 9.93 B |
About Zoom Video Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Zoom Video Communications's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Zoom Video using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Zoom Video Communications based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Zoom Video Communications is a strong investment it is important to analyze Zoom Video's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Zoom Video's future performance. For an informed investment choice regarding Zoom Stock, refer to the following important reports:Check out Zoom Video Piotroski F Score and Zoom Video Altman Z Score analysis. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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When running Zoom Video's price analysis, check to measure Zoom Video's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zoom Video is operating at the current time. Most of Zoom Video's value examination focuses on studying past and present price action to predict the probability of Zoom Video's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zoom Video's price. Additionally, you may evaluate how the addition of Zoom Video to your portfolios can decrease your overall portfolio volatility.
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Is Zoom Video's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zoom Video. If investors know Zoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zoom Video listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.841 | Earnings Share 2.07 | Revenue Per Share 15.053 | Quarterly Revenue Growth 0.026 | Return On Assets 0.0414 |
The market value of Zoom Video Communications is measured differently than its book value, which is the value of Zoom that is recorded on the company's balance sheet. Investors also form their own opinion of Zoom Video's value that differs from its market value or its book value, called intrinsic value, which is Zoom Video's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zoom Video's market value can be influenced by many factors that don't directly affect Zoom Video's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zoom Video's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zoom Video is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zoom Video's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.