Now trading at a price of $63.75, Zoom Video Communications has moved -1.7% so far today.
Zoom Video Communications returned losses of -15.0% last year, with its stock price reaching a high of $89.67 and a low of $60.45. Over the same period, the stock underperformed the S&P 500 index by -35.0%. As of April 2023, the company's 50-day average price was $68.57. Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Based in San Jose, CA, the large-cap Technology company has 8,484 full time employees. Zoom Video Communications has not offered a dividend during the last year.
An Exceptionally Strong Balance Sheet:
| 2020-03-20 | 2021-03-18 | 2022-03-07 | 2023-03-03 | |
|---|---|---|---|---|
| Revenue (MM) | $623 | $2,651 | $4,100 | $4,393 |
| Gross Margins | 81.0% | 69.0% | 74.0% | 75.0% |
| Operating Margins | 2% | 25% | 26% | 6% |
| Net Margins | 4.0% | 25.0% | 34.0% | 2.0% |
| Net Income (MM) | $25 | $672 | $1,376 | $104 |
| Earnings Per Share | $0.09 | $2.25 | $4.5 | $0.35 |
| EPS Growth | n/a | 2400.0% | 100.0% | -92.22% |
| Diluted Shares (MM) | 254 | 298 | 306 | 298 |
| Free Cash Flow (MM) | $190 | $1,557 | $1,751 | $1,405 |
| Capital Expenditures (MM) | -$38 | -$86 | -$146 | -$115 |
| Net Current Assets (MM) | n/a | n/a | n/a | n/a |
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Zoom Video Communications has a trailing twelve month P/E ratio of 142.9, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $4.56, the company has a forward P/E ratio of 15.0. Zoom Video Communications's PEG ratio is 12.63 on the basis of the 11.3% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. In contrast, the market is likely undervaluing Zoom Video Communications in terms of its equity because its P/B ratio is 2.74 while the sector average is 6.23. The company's shares are currently trading 398.0% above their Graham number.
Analysts Give Zoom Video Communications an Average Rating of Hold:
The 24 analysts following Zoom Video Communications have set target prices ranging from $66.0 to $105.0 per share, for an average of $81.76 with a hold rating. As of April 2023, the company is trading -16.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Zoom Video Communications has an average amount of shares sold short because 6.0% of the company's shares are sold short. Institutions own 65.9% of the company's shares, and the insider ownership rate stands at 9.17%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 46% stake in the company is worth $1,383,090,420.
