ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:0ZC - US98980G1022 - Common Stock
193.66 EUR
-4.88 (-2.46%)
0ZC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 116 industry peers in the Software industry. While 0ZC seems to be doing ok healthwise, there are quite some concerns on its profitability. 0ZC is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
0ZC had positive earnings in the past year.
In the past year 0ZC had a positive cash flow from operations.
In the past 5 years 0ZC always reported negative net income.
0ZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.63%, 0ZC is in line with its industry, outperforming 41.38% of the companies in the same industry.
The Return On Equity of 0ZC (-2.07%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2.07% | ||
| ROIC | N/A |
ROA(3y)-2.49%
ROA(5y)-6.57%
ROE(3y)-11.58%
ROE(5y)-30.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 76.65%, 0ZC is in line with its industry, outperforming 58.62% of the companies in the same industry.
0ZC's Gross Margin has been stable in the last couple of years.
0ZC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-0.23%
2. Health
2.1 Basic Checks
0ZC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for 0ZC has been increased compared to 1 year ago.
The number of shares outstanding for 0ZC has been increased compared to 5 years ago.
Compared to 1 year ago, 0ZC has a worse debt to assets ratio.
2.2 Solvency
0ZC has an Altman-Z score of 5.29. This indicates that 0ZC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.29, 0ZC is doing good in the industry, outperforming 71.55% of the companies in the same industry.
0ZC has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as 0ZC would need 2.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.00, 0ZC is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that 0ZC is somewhat dependend on debt financing.
0ZC has a worse Debt to Equity ratio (0.86) than 75.86% of its industry peers.
Although 0ZC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 5.29 |
ROIC/WACCN/A
WACC10.74%
2.3 Liquidity
A Current Ratio of 1.82 indicates that 0ZC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.82, 0ZC is in the better half of the industry, outperforming 68.10% of the companies in the same industry.
0ZC has a Quick Ratio of 1.82. This is a normal value and indicates that 0ZC is financially healthy and should not expect problems in meeting its short term obligations.
0ZC's Quick ratio of 1.82 is fine compared to the rest of the industry. 0ZC outperforms 70.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
0ZC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
Measured over the past years, 0ZC shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.71% on average per year.
0ZC shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.24%.
The Revenue has been growing by 44.03% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)5.47%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%24.68%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
3.2 Future
0ZC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.82% yearly.
The Revenue is expected to grow by 19.54% on average over the next years. This is quite good.
EPS Next Y19.74%
EPS Next 2Y18.63%
EPS Next 3Y19.33%
EPS Next 5Y21.82%
Revenue Next Year23.95%
Revenue Next 2Y21.61%
Revenue Next 3Y20.67%
Revenue Next 5Y19.54%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 65.87, the valuation of 0ZC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 0ZC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.59, 0ZC is valued quite expensively.
0ZC is valuated quite expensively with a Price/Forward Earnings ratio of 49.45.
0ZC's Price/Forward Earnings ratio is in line with the industry average.
0ZC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.87 | ||
| Fwd PE | 49.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 0ZC is valued a bit more expensive than 73.28% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 0ZC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.92 | ||
| EV/EBITDA | 3691.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
0ZC's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.34
PEG (5Y)0.96
EPS Next 2Y18.63%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
0ZC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:0ZC (12/23/2025, 7:00:00 PM)
193.66
-4.88 (-2.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners55.8%
Inst Owner ChangeN/A
Ins Owners35.44%
Ins Owner ChangeN/A
Market Cap30.88B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target283.95 (46.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.32%
Min EPS beat(2)8.25%
Max EPS beat(2)8.4%
EPS beat(4)4
Avg EPS beat(4)8.61%
Min EPS beat(4)8.25%
Max EPS beat(4)9.41%
EPS beat(8)8
Avg EPS beat(8)16.65%
EPS beat(12)12
Avg EPS beat(12)18.75%
EPS beat(16)16
Avg EPS beat(16)20.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)-1.03%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.3%
Revenue beat(16)11
Avg Revenue beat(16)0.65%
PT rev (1m)0.96%
PT rev (3m)0.58%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)3.61%
EPS NY rev (3m)4.03%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.87 | ||
| Fwd PE | 49.45 | ||
| P/S | 12.85 | ||
| P/FCF | 42.92 | ||
| P/OCF | 33.41 | ||
| P/B | 18.36 | ||
| P/tB | 47.12 | ||
| EV/EBITDA | 3691.72 |
EPS(TTM)2.94
EY1.52%
EPS(NY)3.92
Fwd EY2.02%
FCF(TTM)4.51
FCFY2.33%
OCF(TTM)5.8
OCFY2.99%
SpS15.07
BVpS10.55
TBVpS4.11
PEG (NY)3.34
PEG (5Y)0.96
Graham Number26.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.65% | ||
| FCFM | 29.93% |
ROA(3y)-2.49%
ROA(5y)-6.57%
ROE(3y)-11.58%
ROE(5y)-30.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-0.23%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 191.34 | ||
| Cap/Depr | 176.38% | ||
| Cap/Sales | 8.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 12262.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 5.29 |
F-Score4
WACC10.74%
ROIC/WACCN/A
Cap/Depr(3y)212%
Cap/Depr(5y)195.75%
Cap/Sales(3y)8.71%
Cap/Sales(5y)8.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.47%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%24.68%
EPS Next Y19.74%
EPS Next 2Y18.63%
EPS Next 3Y19.33%
EPS Next 5Y21.82%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
Revenue Next Year23.95%
Revenue Next 2Y21.61%
Revenue Next 3Y20.67%
Revenue Next 5Y19.54%
EBIT growth 1Y-20.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.68%
EBIT Next 3Y33.58%
EBIT Next 5YN/A
FCF growth 1Y83.29%
FCF growth 3Y46.46%
FCF growth 5Y92.49%
OCF growth 1Y83.19%
OCF growth 3Y44.56%
OCF growth 5Y65.09%
ZSCALER INC / 0ZC.DE FAQ
Can you provide the ChartMill fundamental rating for ZSCALER INC?
ChartMill assigns a fundamental rating of 4 / 10 to 0ZC.DE.
What is the valuation status for 0ZC stock?
ChartMill assigns a valuation rating of 1 / 10 to ZSCALER INC (0ZC.DE). This can be considered as Overvalued.
Can you provide the profitability details for ZSCALER INC?
ZSCALER INC (0ZC.DE) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for 0ZC stock?
The Earnings per Share (EPS) of ZSCALER INC (0ZC.DE) is expected to grow by 19.74% in the next year.