Zoom Communications Inc. Class A Common Stock (ZM)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham style investor, I like Zoom's asset-light, debt-light model: at the 2026-10-13 close of $98.16, the FairStock-calculated P/E is 9.11 and P/B is 2.89, while D/E is only 0.01. The balance sheet looks fortress-like, with an Altman Z-Score of 9.23, and trailing free cash flow is $1.9B, a 6.5% FCF yield. Returns on equity are high at 32.14%, and annual filings show real earnings progress: fiscal year 2024, the year ended 2024-01-31, had net income of $637.5M and diluted EPS of $2.07; by fiscal year 2026, the year ended 2026-01-31, net income reached $1.9B and diluted EPS reached $6.18. FairStock categorizes it as a FAST GROWER because filed annual results show profit growing 23.1% a year over five years and revenue growing 12.9%. Yet the latest filings reveal unevenness. In fiscal Q1 2027, the quarter ended 2026-04-30, net income was $425.7M; in fiscal Q2 2027, the quarter ended 2026-07-31, it jumped to $1.5B on $1.3B of revenue, an unusual result that may not repeat. Revenue growth is now slow: fiscal year 2026 revenue was $4.9B versus $4.7B in fiscal year 2025. ROCE is 6.11%, modest for a software firm. The Graham Number is $96.80, so the price offers a margin of safety of -1.40%, essentially no discount. My conclusion: a high-quality, cash-rich business, but the current quote already reflects much of the good news. I would want more consistent revenue growth and cleaner earnings before calling it a bargain.

In plain English: Zoom sells video meetings, phone service, and chat tools that help people and companies work together online. The business is very profitable and carries almost no debt, but sales growth has slowed. At about $98, the shares look roughly fair against the company's numbers, a little above a conservative value estimate but not wildly expensive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer