Zoom Video Communications, Inc. [NASDAQ: ZM] shares went higher by 2.05% from its previous closing of $70.44, now trading at the price of $71.88, also adding 1.44 points. Is ZM stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 942933 contracts. Compared to the average trading volume of ZM shares, the company saw a far better performance. Moreover, the stock has a 106.04M float and a -6.05% run over in the last seven days. ZM share price has been hovering between $107.34 and $59.94 lately, and is definitely worthy of attention.
Zoom Video Communications, Inc. [NASDAQ:ZM]: Analyst Rating and Earnings
Its stock price has been found in the range of 59.94 to 107.34. This is compared to its latest closing price of $70.44.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 5 Mar (In 37 Days).
Fundamental Analysis of Zoom Video Communications, Inc. [ZM]
Now let’s turn to look at profitability: with a current Operating Margin for Zoom Video Communications, Inc. [ZM] sitting at +1.87 and its Gross Margin at +75.24, this company’s Net Margin is now 1.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.11, and its Return on Invested Capital has reached 73.00%.
Turning to investigate this organization’s capital structure, Zoom Video Communications, Inc. [ZM] has generated a Total Debt to Total Equity ratio of 9.77. Similarly, its Total Debt to Total Capital is 8.90, while its Total Debt to Total Assets stands at 4.19.
What about valuation? This company’s Enterprise Value to EBITDA is 541.97 and its Total Debt to EBITDA Value is 0.44. The Enterprise Value to Sales for this firm is now 34.13.
Shifting the focus to workforce efficiency, Zoom Video Communications, Inc. [ZM] earns $194,193 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.50 and its Total Asset Turnover is 1.16. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.64 and its Current Ratio is 1.64. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Zoom Video Communications, Inc. [ZM] has 279.42M shares outstanding, amounting to a total market cap of $19.68B. Its stock price has been found in the range of 59.94 to 107.34. At its current price, it has moved down by -33.03% from its 52-week high, and it has moved up 19.93% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 47.62. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Zoom Video Communications, Inc. [ZM] a Reliable Buy?
Shares of Zoom Video Communications, Inc. [ZM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.