ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
FRA:0ZC - Deutsche Boerse Ag - US98980G1022 - Common Stock - Currency: EUR
Overall 0ZC gets a fundamental rating of 4 out of 10. We evaluated 0ZC against 100 industry peers in the Software industry. The financial health of 0ZC is average, but there are quite some concerns on its profitability. 0ZC is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
0ZC had positive earnings in the past year.
0ZC had a positive operating cash flow in the past year.
In the past 5 years 0ZC always reported negative net income.
In the past 5 years 0ZC always reported a positive cash flow from operatings.
1.2 Ratios
0ZC has a Return On Assets (-0.31%) which is comparable to the rest of the industry.
The Return On Equity of 0ZC (-0.97%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.97% | ||
| ROIC | N/A |
ROA(3y)-6.87%
ROA(5y)-7.7%
ROE(3y)-33.5%
ROE(5y)-34.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
0ZC has a better Gross Margin (77.77%) than 68.00% of its industry peers.
In the last couple of years the Gross Margin of 0ZC has remained more or less at the same level.
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 | 77.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.14%
GM growth 5Y-0.59%
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.
0ZC has more shares outstanding than it did 5 years ago.
0ZC has a better debt/assets ratio than last year.
2.2 Solvency
0ZC has an Altman-Z score of 7.11. This indicates that 0ZC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.11, 0ZC is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
The Debt to FCF ratio of 0ZC is 1.65, which is an excellent value as it means it would take 0ZC, only 1.65 years of fcf income to pay off all of its debts.
0ZC has a better Debt to FCF ratio (1.65) than 73.00% of its industry peers.
0ZC has a Debt/Equity ratio of 0.71. This is a neutral value indicating 0ZC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, 0ZC is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
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 | 0.71 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 7.11 |
ROIC/WACCN/A
WACC10.78%
2.3 Liquidity
A Current Ratio of 1.20 indicates that 0ZC should not have too much problems paying its short term obligations.
0ZC has a Current ratio of 1.20. This is comparable to the rest of the industry: 0ZC outperforms 50.00% of its industry peers.
A Quick Ratio of 1.20 indicates that 0ZC should not have too much problems paying its short term obligations.
0ZC has a Quick ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
0ZC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.80%, which is quite impressive.
Measured over the past years, 0ZC shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.72% on average per year.
The Revenue has grown by 27.77% in the past year. This is a very strong growth!
Measured over the past years, 0ZC shows a very strong growth in Revenue. The Revenue has been growing by 48.24% on average per year.
EPS 1Y (TTM)29.8%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%2.63%
Revenue 1Y (TTM)27.77%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%23.41%
3.2 Future
The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
Based on estimates for the next years, 0ZC will show a very strong growth in Revenue. The Revenue will grow by 21.34% on average per year.
EPS Next Y-0.94%
EPS Next 2Y7.82%
EPS Next 3Y11.92%
EPS Next 5Y15.5%
Revenue Next Year23.65%
Revenue Next 2Y22.08%
Revenue Next 3Y21.49%
Revenue Next 5Y21.34%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 76.06, 0ZC can be considered very expensive at the moment.
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 26.03, 0ZC is valued quite expensively.
With a Price/Forward Earnings ratio of 67.80, 0ZC can be considered very expensive at the moment.
0ZC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, 0ZC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.06 | ||
| Fwd PE | 67.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 0ZC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y7.82%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
No dividends for 0ZC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (5/21/2025, 7:00:00 PM)
222.1
-1.1 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.13%
Inst Owner ChangeN/A
Ins Owners37.29%
Ins Owner ChangeN/A
Market Cap34.36B
Analysts80
Price Target216.49 (-2.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)13.76%
Min EPS beat(2)9.41%
Max EPS beat(2)18.11%
EPS beat(4)4
Avg EPS beat(4)20.21%
Min EPS beat(4)9.41%
Max EPS beat(4)30.36%
EPS beat(8)8
Avg EPS beat(8)22.22%
EPS beat(12)12
Avg EPS beat(12)23.55%
EPS beat(16)16
Avg EPS beat(16)29.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)0.57%
Revenue beat(4)3
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)1.35%
Revenue beat(8)6
Avg Revenue beat(8)0.5%
Revenue beat(12)10
Avg Revenue beat(12)0.93%
Revenue beat(16)14
Avg Revenue beat(16)1.77%
PT rev (1m)-2.21%
PT rev (3m)-4.03%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)1.84%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.06 | ||
| Fwd PE | 67.8 | ||
| P/S | 16.06 | ||
| P/FCF | 56 | ||
| P/OCF | 43.82 | ||
| P/B | 24.2 | ||
| P/tB | 34.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.92
EY1.31%
EPS(NY)3.28
Fwd EY1.47%
FCF(TTM)3.97
FCFY1.79%
OCF(TTM)5.07
OCFY2.28%
SpS13.83
BVpS9.18
TBVpS6.47
PEG (NY)N/A
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.77% | ||
| FCFM | 28.69% |
ROA(3y)-6.87%
ROA(5y)-7.7%
ROE(3y)-33.5%
ROE(5y)-34.76%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y0.14%
GM growth 5Y-0.59%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 193.28% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 7.11 |
F-Score6
WACC10.78%
ROIC/WACCN/A
Cap/Depr(3y)205.41%
Cap/Depr(5y)204.29%
Cap/Sales(3y)8.42%
Cap/Sales(5y)9.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.8%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%2.63%
EPS Next Y-0.94%
EPS Next 2Y7.82%
EPS Next 3Y11.92%
EPS Next 5Y15.5%
Revenue 1Y (TTM)27.77%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%23.41%
Revenue Next Year23.65%
Revenue Next 2Y22.08%
Revenue Next 3Y21.49%
Revenue Next 5Y21.34%
EBIT growth 1Y45.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.45%
EBIT Next 3Y36.88%
EBIT Next 5YN/A
FCF growth 1Y150.86%
FCF growth 3Y59.67%
FCF growth 5Y83.91%
OCF growth 1Y122.87%
OCF growth 3Y56.87%
OCF growth 5Y68.16%