Zoom Communications (ZM)
Market Price (11/3/2025): $87.49 | Market Cap: $26.4 BilSector: Information Technology | Industry: Application Software
Zoom Communications (ZM)
Market Price (11/3/2025): $87.49Market Cap: $26.4 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -29% | Trading close to highsDist 52W High is -2.0%, Dist 3Y High is -2.0% | |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 40%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39% | Weak multi-year price returns2Y Excs Rtn is -19%, 3Y Excs Rtn is -74% | |
| Attractive yieldFCF Yield is 7.0% | ||
| Low stock price volatilityVol 12M is 33% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -29% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 40%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39% |
| Attractive yieldFCF Yield is 7.0% |
| Low stock price volatilityVol 12M is 33% |
| Trading close to highsDist 52W High is -2.0%, Dist 3Y High is -2.0% |
| Weak multi-year price returns2Y Excs Rtn is -19%, 3Y Excs Rtn is -74% |
Market Valuation & Key Metrics
ZM Stock
Why The Stock Moved
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ZM Return | 396% | -45% | -63% | 6% | 13% | 7% | 28% |
| Peers Return | 57% | 12% | -49% | 22% | 9% | 11% | 32% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| ZM Win Rate | 75% | 42% | 25% | 50% | 58% | 70% | |
| Peers Win Rate | 60% | 58% | 25% | 58% | 55% | 56% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| ZM Max Drawdown | -1% | -46% | -64% | -12% | -23% | -18% | |
| Peers Max Drawdown | -25% | -22% | -56% | -18% | -19% | -26% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: MSFT, GOOGL, CSCO, RNG, EGHT. See ZM Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 10/31/2025 (YTD)
How Low Can It Go
| Event | ZM | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -86.7% | -25.4% |
| % Gain to Breakeven | 649.7% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -40.6% | -33.9% |
| % Gain to Breakeven | 68.5% | 51.3% |
| Time to Breakeven | Not Fully Recovered days | 148 days |
Compare to MSFT, GOOGL, CSCO, RNG, EGHT
In The Past
Zoom Communications's stock fell -86.7% during the 2022 Inflation Shock from a high on 2/16/2021. A -86.7% loss requires a 649.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
Trade Ideas
Select past ideas related to ZM. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | ZBRA | Zebra Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | ACN | Accenture | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | ADBE | Adobe | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | TXN | Texas Instruments | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | 0.0% |
| 10242025 | MRVL | Marvell Technology | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 11.4% | 11.4% | 0.0% |
| 10312023 | ZM | Zoom Communications | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 1.9% | 24.7% | -7.8% |
| 09302022 | ZM | Zoom Communications | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.3% | -5.0% | -17.4% |
| 03312022 | ZM | Zoom Communications | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | -36.5% | -37.0% | -44.2% |
| 09302021 | ZM | Zoom Communications | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | -55.2% | -71.9% | -72.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | ZBRA | Zebra Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | ACN | Accenture | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | ADBE | Adobe | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | TXN | Texas Instruments | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | 0.0% |
| 10242025 | MRVL | Marvell Technology | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 11.4% | 11.4% | 0.0% |
| 10312023 | ZM | Zoom Communications | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 1.9% | 24.7% | -7.8% |
| 09302022 | ZM | Zoom Communications | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.3% | -5.0% | -17.4% |
| 03312022 | ZM | Zoom Communications | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | -36.5% | -37.0% | -44.2% |
| 09302021 | ZM | Zoom Communications | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | -55.2% | -71.9% | -72.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Zoom Communications
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 80.17 |
| Mkt Cap | 158.0 |
| Rev LTM | 30,704 |
| Op Inc LTM | 6,738 |
| FCF LTM | 7,566 |
| FCF 3Y Avg | 7,872 |
| CFO LTM | 8,053 |
| CFO 3Y Avg | 8,336 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 5.9% |
| Rev Chg 3Y Avg | 7.0% |
| Rev Chg Q | 6.1% |
| QoQ Delta Rev Chg LTM | 1.5% |
| Op Mgn LTM | 21.3% |
| Op Mgn 3Y Avg | 18.8% |
| QoQ Delta Op Mgn LTM | 0.5% |
| CFO/Rev LTM | 32.2% |
| CFO/Rev 3Y Avg | 31.0% |
| FCF/Rev LTM | 21.7% |
| FCF/Rev 3Y Avg | 22.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 158.0 |
| P/S | 5.3 |
| P/EBIT | 28.3 |
| P/E | 24.8 |
| P/CFO | 17.1 |
| Total Yield | 3.7% |
| Dividend Yield | 0.1% |
| FCF Yield 3Y Avg | 7.0% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 7.6% |
| 3M Rtn | 16.3% |
| 6M Rtn | 18.0% |
| 12M Rtn | 21.3% |
| 3Y Rtn | 46.6% |
| 1M Excs Rtn | 5.0% |
| 3M Excs Rtn | 6.2% |
| 6M Excs Rtn | -2.3% |
| 12M Excs Rtn | 0.9% |
| 3Y Excs Rtn | -36.3% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 7312025 | 8222025 | 10-Q 7/31/2025 |
| 4302025 | 5232025 | 10-Q 4/30/2025 |
| 1312025 | 2282025 | 10-K 1/31/2025 |
| 10312024 | 11262024 | 10-Q 10/31/2024 |
| 7312024 | 8232024 | 10-Q 7/31/2024 |
| 4302024 | 5222024 | 10-Q 4/30/2024 |
| 1312024 | 3042024 | 10-K 1/31/2024 |
| 10312023 | 11212023 | 10-Q 10/31/2023 |
| 7312023 | 8232023 | 10-Q 7/31/2023 |
| 4302023 | 5252023 | 10-Q 4/30/2023 |
| 1312023 | 3032023 | 10-K 1/31/2023 |
| 10312022 | 11232022 | 10-Q 10/31/2022 |
| 7312022 | 8242022 | 10-Q 7/31/2022 |
| 4302022 | 5252022 | 10-Q 4/30/2022 |
| 1312022 | 3072022 | 10-K 1/31/2022 |
| 10312021 | 11232021 | 10-Q 10/31/2021 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |