ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:0ZC - US98980G1022 - Common Stock
196.9 EUR
-2.08 (-1.05%)
Overall 0ZC gets a fundamental rating of 4 out of 10. We evaluated 0ZC against 115 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year 0ZC was profitable.
In the past year 0ZC had a positive cash flow from operations.
0ZC had negative earnings in each of the past 5 years.
0ZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.63%, 0ZC is not doing good in the industry: 61.74% of the companies in the same industry are doing better.
With a Return On Equity value of -2.07%, 0ZC is not doing good in the industry: 61.74% of the companies in the same industry are doing better.
| 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 56.52% 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.
Compared to 1 year ago, 0ZC has more shares outstanding
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
An Altman-Z score of 5.37 indicates that 0ZC is not in any danger for bankruptcy at the moment.
0ZC has a Altman-Z score of 5.37. This is in the better half of the industry: 0ZC outperforms 69.57% of its industry peers.
The Debt to FCF ratio of 0ZC is 2.00, which is a good value as it means it would take 0ZC, 2.00 years of fcf income to pay off all of its debts.
0ZC has a Debt to FCF ratio (2.00) which is in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that 0ZC is somewhat dependend on debt financing.
0ZC has a Debt to Equity ratio of 0.86. This is amonst the worse of the industry: 0ZC underperforms 80.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for 0ZC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 5.37 |
ROIC/WACCN/A
WACC10.66%
2.3 Liquidity
A Current Ratio of 1.82 indicates that 0ZC should not have too much problems paying its short term obligations.
0ZC's Current ratio of 1.82 is fine compared to the rest of the industry. 0ZC outperforms 65.22% of its industry peers.
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 has a better Quick ratio (1.82) than 67.83% 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%.
0ZC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
0ZC shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.24%.
Measured over the past years, 0ZC shows a very strong growth in Revenue. The Revenue has been growing by 44.03% on average per year.
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 Y19.45%
EPS Next 2Y18.48%
EPS Next 3Y19.19%
EPS Next 5Y21.82%
Revenue Next Year23.88%
Revenue Next 2Y21.58%
Revenue Next 3Y20.69%
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
The Price/Earnings ratio is 66.75, which means the current valuation is very expensive for 0ZC.
0ZC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.43. 0ZC is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 50.36, 0ZC can be considered very expensive at the moment.
0ZC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 0ZC to the average of the S&P500 Index (23.66), we can say 0ZC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.75 | ||
| Fwd PE | 50.36 |
4.2 Price Multiples
72.17% of the companies in the same industry are cheaper than 0ZC, based on the Enterprise Value to EBITDA ratio.
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 | 43.6 | ||
| EV/EBITDA | 3756.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 0ZC does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as 0ZC's earnings are expected to grow with 19.19% in the coming years.
PEG (NY)3.43
PEG (5Y)0.97
EPS Next 2Y18.48%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
No dividends for 0ZC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:0ZC (12/16/2025, 7:00:00 PM)
196.9
-2.08 (-1.05%)
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 Cap31.40B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target285.35 (44.92%)
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)1.46%
PT rev (3m)1.07%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)3.36%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.75 | ||
| Fwd PE | 50.36 | ||
| P/S | 13.05 | ||
| P/FCF | 43.6 | ||
| P/OCF | 33.94 | ||
| P/B | 18.65 | ||
| P/tB | 47.86 | ||
| EV/EBITDA | 3756.39 |
EPS(TTM)2.95
EY1.5%
EPS(NY)3.91
Fwd EY1.99%
FCF(TTM)4.52
FCFY2.29%
OCF(TTM)5.8
OCFY2.95%
SpS15.09
BVpS10.56
TBVpS4.11
PEG (NY)3.43
PEG (5Y)0.97
Graham Number26.47
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 | 5.37 |
F-Score4
WACC10.66%
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 Y19.45%
EPS Next 2Y18.48%
EPS Next 3Y19.19%
EPS Next 5Y21.82%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
Revenue Next Year23.88%
Revenue Next 2Y21.58%
Revenue Next 3Y20.69%
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 19.45% in the next year.