Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin23.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin39.0%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt0.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$6.6B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$6.7B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$1.9B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income3.4%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.1B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit77.0%
Operating Margin23.1%
Net Margin39.0%
Company Info
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
2022
Gross Profit %
77.0%▲
75.8%▼
76.2%▲
74.9%•
N/A
Operating Margin %
23.1%▲
17.4%▲
11.6%▲
5.6%•
N/A
Net Income %
39.0%▲
21.7%▲
14.1%▲
2.4%•
N/A
Diluted EPS
6.18▲
3.21▲
2.07▲
0.34•
N/A
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$12.0B
$11.0B
$9.9B
$8.1B
N/A
Total Debt
$58M▼
$64M▼
$73M▼
$96M•
N/A
Working Capital
$6.7B▼
$6.8B▲
$6.2B▲
$4.6B•
N/A
Years to Pay Debt
0.03
0.06
0.11
0.93
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$1.9B▲
$1.8B▲
$1.5B▲
$1.2B•
N/A
Owner Earnings
$2.1B
$1.3B
$869M
$301M
N/A
CapEx % of Net Income
3.4%
13.5%
19.9%
111.0%
N/A
Income Statement
2026
2025
2024
2023
2022
Tax Effect Of Unusual Items
209,482
41,097
25,686
-7,890
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
286,642
758,785
519,960
365,321
Total Unusual Items
969,822
177,142
109,770
-37,571
Total Unusual Items Excluding Goodwill
969,822
177,142
109,770
-37,571
Net Income From Continuing Operation Net Minority Interest
1,900,148
1,010,238
637,462
103,711
Reconciled Depreciation
132,831
122,632
104,451
82,321
Reconciled Cost Of Revenue
1,119,036
1,129,627
1,077,801
1,100,451
EBITDA
1,256,464
935,927
629,730
327,750
EBIT
1,123,633
813,295
525,279
245,429
Normalized Income
1,139,808
874,193
553,378
133,392
Net Income From Continuing And Discontinued Operation
1,900,148
1,010,238
637,462
103,711
Total Expenses
3,745,136
3,852,138
4,001,945
4,147,531
Total Operating Income As Reported
1,123,633
813,295
525,279
245,429
Diluted Average Shares
307,333
315,070
308,520
304,231
Basic Average Shares
300,504
307,982
300,748
296,561
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
1,900,148
1,010,238
637,462
103,704
Net Income Common Stockholders
1,900,148
1,010,238
637,462
103,704
Otherunder Preferred Stock Dividend
0
0
7
582
Net Income
1,900,148
1,010,238
637,462
103,711
Net Income Including Noncontrolling Interests
1,900,148
1,010,238
637,462
103,711
Net Income Continuous Operations
1,900,148
1,010,238
637,462
103,711
Tax Provision
522,137
305,346
194,850
145,565
Pretax Income
2,422,285
1,315,584
832,312
249,276
Other Income Expense
1,298,652
502,289
307,033
3,847
Other Non Operating Income Expenses
328,830
325,147
197,263
41,418
Gain On Sale Of Security
969,822
177,142
109,770
-37,571
Operating Income
1,123,633
813,295
525,279
245,429
Operating Expense
2,626,100
2,722,511
2,924,144
3,047,080
Research And Development
844,875
852,415
803,187
774,059
Selling General And Administration
1,781,225
1,870,096
2,120,957
2,273,021
Selling And Marketing Expense
1,388,297
1,427,384
1,541,307
1,696,590
General And Administrative Expense
392,928
442,712
579,650
576,431
Other Gand A
392,928
442,712
579,650
576,431
Gross Profit
3,749,733
3,535,806
3,449,423
3,292,509
Cost Of Revenue
1,119,036
1,129,627
1,077,801
1,100,451
Total Revenue
4,868,769
4,665,433
4,527,224
4,392,960
Operating Revenue
4,868,769
4,665,433
4,527,224
4,392,960
Balance Sheet
2026
2025
2024
2023
2022
Ordinary Shares Number
295,527
305,741
307,558
293,823
Share Issued
295,527
305,741
307,558
293,823
Total Debt
58,475
64,432
72,953
96,477
Tangible Book Value
9,336,630
8,569,140
7,639,937
6,027,307
Invested Capital
9,808,258
8,935,084
8,019,406
6,206,607
Working Capital
6,658,769
6,772,680
6,164,032
4,617,768
Net Tangible Assets
9,336,630
8,569,140
7,639,937
6,027,307
Capital Lease Obligations
58,475
64,432
72,953
96,477
Common Stock Equity
9,808,258
8,935,084
8,019,406
6,206,607
Total Capitalization
9,808,258
8,935,084
8,019,406
6,206,607
Total Equity Gross Minority Interest
9,808,258
8,935,084
8,019,406
6,206,607
Stockholders Equity
9,808,258
8,935,084
8,019,406
6,206,607
Gains Losses Not Affecting Retained Earnings
8,544
4,990
1,063
-50,385
Other Equity Adjustments
8,544
4,990
1,063
-50,385
Retained Earnings
5,699,666
3,799,518
2,789,280
2,151,818
Additional Paid In Capital
4,099,753
5,130,271
5,228,756
4,104,880
Capital Stock
295
305
307
294
Common Stock
295
305
307
294
Total Liabilities Net Minority Interest
2,152,158
2,053,337
1,910,387
1,921,458
Total Non Current Liabilities Net Minority Interest
152,968
150,043
148,200
182,814
Other Non Current Liabilities
6,108
4,397
5,260
1,734
Tradeand Other Payables Non Current
102,955
90,966
76,118
65,461
Non Current Deferred Liabilities
13,195
17,274
18,514
41,932
Non Current Deferred Revenue
13,195
17,274
18,514
41,932
Long Term Debt And Capital Lease Obligation
30,710
37,406
48,308
73,687
Long Term Capital Lease Obligation
30,710
37,406
48,308
73,687
Current Liabilities
1,999,190
1,903,294
1,762,187
1,738,644
Other Current Liabilities
37,563
30,128
18,916
21,692
Current Deferred Liabilities
1,467,883
1,383,699
1,291,990
1,300,154
Current Deferred Revenue
1,467,883
1,383,699
1,291,990
1,300,154
Current Debt And Capital Lease Obligation
27,765
27,026
24,645
22,790
Current Capital Lease Obligation
27,765
27,026
24,645
22,790
Pensionand Other Post Retirement Benefit Plans Current
206,367
193,110
185,128
139,105
Payables And Accrued Expenses
259,612
269,331
241,508
254,903
Current Accrued Expenses
192,478
200,416
173,993
160,189
Payables
67,134
68,915
67,515
94,714
Total Tax Payable
60,866
60,570
57,340
80,300
Income Tax Payable
18,947
18,815
21,880
46,441
Accounts Payable
6,268
8,345
10,175
14,414
Total Assets
11,960,416
10,988,421
9,929,793
8,128,065
Total Non Current Assets
3,302,457
2,312,447
2,003,574
1,771,653
Other Non Current Assets
11,446
11,772
11,853
19,489
Non Current Prepaid Assets
35,000
52,156
23,351
9,695
Non Current Deferred Assets
862,173
873,223
800,901
738,419
Non Current Deferred Taxes Assets
646,640
749,759
662,177
558,428
Non Current Accounts Receivable
26,651
31,496
26,099
92,031
Investments And Advances
1,578,611
591,481
409,222
398,992
Other Investments
367,814
Investmentin Financial Assets
1,578,611
591,481
409,222
398,992
Held To Maturity Securities
3,968
4,450
3,828
14,400
Available For Sale Securities
1,574,643
587,031
405,394
384,592
Goodwill And Other Intangible Assets
471,628
365,944
379,469
179,300
Other Intangible Assets
71,236
58,649
72,174
56,659
Goodwill
400,392
307,295
307,295
122,641
Net PPE
316,948
386,375
352,679
333,727
Accumulated Depreciation
-388,935
-328,121
-236,317
-159,682
Gross PPE
705,883
714,496
588,996
493,409
Leases
57,761
54,885
43,981
25,948
Other Properties
52,423
55,900
58,975
80,906
Machinery Furniture Equipment
595,699
603,711
486,040
386,555
Current Assets
8,657,959
8,675,974
7,926,219
6,356,412
Other Current Assets
20,509
21,718
24,049
26,458
Current Deferred Assets
108,856
188,358
208,474
223,250
Restricted Cash
10,904
12,037
6,874
13,141
Prepaid Assets
203,443
166,924
188,259
123,493
Receivables
497,339
495,228
536,078
557,404
Accounts Receivable
497,339
495,228
536,078
557,404
Allowance For Doubtful Accounts Receivable
-18,348
-22,078
-32,371
-33,206
Gross Accounts Receivable
515,687
517,306
568,449
590,610
Cash Cash Equivalents And Short Term Investments
7,816,908
7,791,709
6,962,485
5,412,666
Other Short Term Investments
6,544,031
6,442,329
5,404,233
4,325,836
Cash And Cash Equivalents
1,272,877
1,349,380
1,558,252
1,086,830
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
1,923,587
1,808,748
1,471,883
1,175,168
Repurchase Of Capital Stock
-1,620,691
-1,093,878
0
-1,000,003
Capital Expenditure
-65,461
-136,560
-126,953
-115,094
Income Tax Paid Supplemental Data
395,400
348,100
309,084
38,979
End Cash Position
1,283,781
1,361,417
1,565,380
1,100,243
Beginning Cash Position
1,361,417
1,565,380
1,100,243
1,073,353
Effect Of Exchange Rate Changes
17,572
-15,170
-10,196
-8,108
Changes In Cash
-95,208
-188,793
475,333
34,998
Financing Cash Flow
-1,805,358
-1,028,077
60,186
-936,942
Cash Flow From Continuing Financing Activities
-1,805,358
-1,028,077
60,186
-936,942
Net Other Financing Charges
-248,355
7,174
-4,106
774
Proceeds From Stock Option Exercised
63,688
58,627
64,292
62,287
Net Common Stock Issuance
-1,620,691
-1,093,878
0
-1,000,003
Common Stock Payments
-1,620,691
-1,093,878
0
-1,000,003
Investing Cash Flow
-278,898
-1,106,024
-1,183,689
-318,322
Cash Flow From Continuing Investing Activities
-278,898
-1,106,024
-1,183,689
-318,322
Net Other Investing Changes
300
Net Investment Purchase And Sale
-93,641
-969,464
-851,818
-82,675
Sale Of Investment
4,829,202
3,671,140
3,302,677
2,835,496
Purchase Of Investment
-4,922,843
-4,640,604
-4,154,495
-2,918,171
Net Business Purchase And Sale
-119,796
0
-204,918
-120,553
Purchase Of Business
-119,796
0
-204,918
-120,553
Net Intangibles Purchase And Sale
-500
0
0
-11,268
Purchase Of Intangibles
-500
0
0
-11,268
Net PPE Purchase And Sale
-64,961
-136,560
-126,953
-103,826
Purchase Of PPE
-64,961
-136,560
-126,953
-103,826
Operating Cash Flow
1,989,048
1,945,308
1,598,836
1,290,262
Cash Flow From Continuing Operating Activities
1,989,048
1,945,308
1,598,836
1,290,262
Change In Working Capital
-268,327
-126,946
-254,619
-412,837
Change In Other Working Capital
-232,763
-166,732
-261,376
-171,228
Change In Other Current Liabilities
-28,714
-28,884
-22,824
-23,839
Change In Payables And Accrued Expense
19,148
59,144
47,558
32,141
Change In Accrued Expense
19,761
62,277
51,974
20,530
Change In Payable
-613
-3,133
-4,416
11,611
Change In Account Payable
-613
-3,133
-4,416
11,611
Change In Prepaid Assets
-28,821
-17,114
-71,247
-18,066
Change In Receivables
2,823
26,640
53,270
-231,845
Changes In Account Receivables
2,823
26,640
53,270
-231,845
Other Non Cash Items
351,371
310,217
284,097
289,948
Stock Based Compensation
760,776
931,309
1,057,161
1,285,752
Provisionand Write Offof Assets
17,351
20,022
35,244
50,285
Amortization Of Securities
-28,910
-71,636
-50,770
1,206
Deferred Tax
105,035
-90,551
-116,679
-160,961
Deferred Income Tax
105,035
-90,551
-116,679
-160,961
Depreciation Amortization Depletion
132,831
122,632
104,451
82,321
Depreciation And Amortization
132,831
122,632
104,451
82,321
Operating Gains Losses
-981,227
-159,977
-97,511
50,837
Gain Loss On Investment Securities
-969,822
-177,142
-109,770
37,571
Net Foreign Currency Exchange Gain Loss
-11,405
17,165
12,259
13,266
Net Income From Continuing Operations
1,900,148
1,010,238
637,462
103,711
4/5
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $9.8B
Warren's Owner Earnings
$2.1B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/5 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$4.9B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
4.33x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $0.34 to $6.18 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+1717.6% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $4.9Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 4.33xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $0.34 to $6.18 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what ZM is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
8.9%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
3.4%
13.5%
19.9%
111.0%
N/A
Repurchase of Capital Stock
-$1.6B
-$1.1B
$0M
-$1.0B
N/A
Free Cash Flow
$1.9B▲
$1.8B▲
$1.5B▲
$1.2B•
N/A•
Warren's Owner Earnings
$2.1B
$1.3B
$869M
$301M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare ZM against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
ZM (ZM) fundamental analysis — Overall grade A based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 77.0%. Operating margin: 23.1%. Net margin: 39.0%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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