Zoom Communications, Inc. (ZM): one to watch?

Fairly priced cash machine with near-zero growth — cheap for a good reason (stagnant revenue), not a screaming bargain.

👀 WATCH Fundamentals72/100

Down 83% from its all-time high of $559.00 — now $95.46

Why ZM dropped

The recent dip (from ~$110 down to $95) isn't a scandal or business breakdown — it's Zoom beating Q2 earnings and revenue but issuing slightly soft Q3 guidance and only modestly raising full-year guidance, which disappointed investors expecting more given the stock's recent run-up.

Fwd P/E 15.1Op margin 24.6%Rev growth 4.9%Debt/equity 0.5%Analyst upside 23.9%

How this scored 72/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 65.2%

✅ Generates cash Free cash flow $2.0B

✅ Not drowning in debt Debt/equity 0.5% (limit 200%)

✅ Can pay its bills Current ratio 3.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 24.6% 9/9

Net profit margin 65.2% 8/8

Return on equity 32.1% 8/8

Growth Is it getting bigger, or dying? 11/25

Revenue growth 4.9% 3/9

Earnings growth 342.3% 8/8

Expected profit change -40.7% 0/8

Value Is it cheap right now? 11/25

Forward P/E 15.1 8/10

PEG ratio 4.2 0/8

Analyst target upside 23.9% 3/7

Balance sheet Will it survive? 25/25

Debt / equity 0.5% 10/10

Current ratio 3.8 8/8

Free cash flow $2.0B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-11. Research only — not financial advice.