Zoom Communications, Inc. (ZM): a potential bargain?

Buy — a hugely profitable, debt-free cash machine trading at 8x earnings mainly because growth is slow, not because the business is breaking.

🔥 HOT Fundamentals75/100

Down 84% from its all-time high of $559.00 — now $89.71

Why ZM dropped

The stock is down 84% from its 2020 pandemic bubble peak (that peak was never realistic), but the recent slide is from a Q2 FY2027 earnings report that actually beat guidance and raised full-year revenue outlook; the stock fell mainly because management flagged its smaller "Online" self-serve segment would be flat instead of slightly growing due to AI changing how people find software.

Fwd P/E 14.1Op margin 24.6%Rev growth 4.9%Debt/equity 0.5%Analyst upside 31.8%

How this scored 75/100

✅ 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 -41.1% 0/8

Value Is it cheap right now? 14/25

Forward P/E 14.1 8/10

PEG ratio 2.5 2/8

Analyst target upside 31.8% 4/7

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 2026-09-28. Research only — not financial advice.