ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:0ZC • US98980G1022
170.52 EUR
+2.5 (+1.49%)
Last: Jan 30, 2026, 07:00 PM
0ZC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 115 industry peers in the Software industry. 0ZC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 0ZC is valued quite expensively, but it does show have an excellent growth rating.
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.
- In the past 5 years 0ZC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 0ZC (-0.63%) is worse than 60.87% of its industry peers.
- Looking at the Return On Equity, with a value of -2.07%, 0ZC is doing worse than 60.87% of the companies in the same 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 57.39% 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.
- 0ZC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 0ZC has more shares outstanding
- 0ZC has a worse debt/assets ratio than last year.
2.2 Solvency
- 0ZC has an Altman-Z score of 4.76. This indicates that 0ZC is financially healthy and has little risk of bankruptcy at the moment.
- 0ZC has a better Altman-Z score (4.76) than 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.
- With a decent Debt to FCF ratio value of 2.00, 0ZC is doing good in the industry, outperforming 60.87% of the companies in the same industry.
- 0ZC has a Debt/Equity ratio of 0.86. This is a neutral value indicating 0ZC is somewhat dependend on debt financing.
- 0ZC's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. 0ZC is outperformed by 76.52% 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 | 4.76 |
ROIC/WACCN/A
WACC10.77%
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 66.96% 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.
- The Quick ratio of 0ZC (1.82) is better than 70.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.47% over the past year.
- The Earnings Per Share has been growing by 68.71% on average over the past years. This is a very strong growth
- 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
- Based on estimates for the next years, 0ZC will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.81% on average per year.
- Based on estimates for the next years, 0ZC will show a very strong growth in Revenue. The Revenue will grow by 20.01% on average per year.
EPS Next Y19.74%
EPS Next 2Y18.63%
EPS Next 3Y19.33%
EPS Next 5Y19.81%
Revenue Next Year23.95%
Revenue Next 2Y21.61%
Revenue Next 3Y20.67%
Revenue Next 5Y20.01%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 58.60, which means the current valuation is very expensive for 0ZC.
- The rest of the industry has a similar Price/Earnings ratio as 0ZC.
- 0ZC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 44.03, which means the current valuation is very expensive for 0ZC.
- The rest of the industry has a similar Price/Forward Earnings ratio as 0ZC.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 0ZC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.6 | ||
| Fwd PE | 44.03 |
4.2 Price Multiples
- 0ZC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 0ZC is more expensive than 73.04% of the companies in the same industry.
- 0ZC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.22 | ||
| EV/EBITDA | 3242.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as 0ZC's earnings are expected to grow with 19.33% in the coming years.
PEG (NY)2.97
PEG (5Y)0.85
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% |
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 of ZSCALER INC (0ZC.DE) 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.
What is the valuation of ZSCALER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZSCALER INC (0ZC.DE) is 58.6 and the Price/Book (PB) ratio is 16.35.