ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
FRA:0ZC - US98980G1022 - Common Stock
229.25 EUR
-1 (-0.43%)
Taking everything into account, 0ZC scores 4 out of 10 in our fundamental rating. 0ZC was compared to 108 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
In the past year 0ZC was profitable.
0ZC had a positive operating cash flow in the past year.
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
0ZC has a Return On Assets of -0.73%. This is comparable to the rest of the industry: 0ZC outperforms 42.59% of its industry peers.
0ZC has a Return On Equity (-2.15%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.73% | ||
| ROE | -2.15% | ||
| 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
The Gross Margin of 0ZC (77.38%) is better than 62.04% 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 | 77.38% |
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.
0ZC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 0ZC has more shares outstanding
Compared to 1 year ago, 0ZC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.35 indicates that 0ZC is not in any danger for bankruptcy at the moment.
0ZC has a better Altman-Z score (7.35) than 78.70% of its industry peers.
The Debt to FCF ratio of 0ZC is 1.66, which is an excellent value as it means it would take 0ZC, only 1.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 0ZC (1.66) is better than 68.52% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that 0ZC is somewhat dependend on debt financing.
The Debt to Equity ratio of 0ZC (0.64) is worse than 66.67% 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 | 0.64 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 7.35 |
ROIC/WACCN/A
WACC10.93%
2.3 Liquidity
A Current Ratio of 1.24 indicates that 0ZC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, 0ZC perfoms like the industry average, outperforming 49.07% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that 0ZC should not have too much problems paying its short term obligations.
0ZC has a Quick ratio (1.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.85% over the past year.
The Earnings Per Share has been growing by 70.72% on average over the past years. This is a very strong growth
Looking at the last year, 0ZC shows a very strong growth in Revenue. The Revenue has grown by 25.46%.
0ZC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.24% yearly.
EPS 1Y (TTM)10.85%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)25.46%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%22.57%
3.2 Future
0ZC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.65% yearly.
The Revenue is expected to grow by 21.26% on average over the next years. This is a very strong growth
EPS Next Y2.79%
EPS Next 2Y8.79%
EPS Next 3Y12.86%
EPS Next 5Y17.65%
Revenue Next Year24.11%
Revenue Next 2Y22.28%
Revenue Next 3Y21.46%
Revenue Next 5Y21.26%
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.
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 81.58, 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.
0ZC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.06.
A Price/Forward Earnings ratio of 70.72 indicates a quite expensive valuation of 0ZC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 0ZC is on the same level as its industry peers.
0ZC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.58 | ||
| Fwd PE | 70.72 |
4.2 Price Multiples
0ZC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.16 | ||
| EV/EBITDA | N/A |
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 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)29.24
PEG (5Y)1.15
EPS Next 2Y8.79%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
No dividends for 0ZC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (9/5/2025, 7:00:00 PM)
229.25
-1 (-0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners58.45%
Inst Owner ChangeN/A
Ins Owners36.57%
Ins Owner ChangeN/A
Market Cap35.69B
Analysts80
Price Target278.42 (21.45%)
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)8.9%
Min EPS beat(2)8.39%
Max EPS beat(2)9.41%
EPS beat(4)4
Avg EPS beat(4)14.72%
Min EPS beat(4)8.39%
Max EPS beat(4)22.98%
EPS beat(8)8
Avg EPS beat(8)22.02%
EPS beat(12)12
Avg EPS beat(12)19.58%
EPS beat(16)16
Avg EPS beat(16)23.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)1.35%
Revenue beat(8)6
Avg Revenue beat(8)0.62%
Revenue beat(12)9
Avg Revenue beat(12)0.61%
Revenue beat(16)13
Avg Revenue beat(16)1.4%
PT rev (1m)-0.32%
PT rev (3m)28.6%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)3.21%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.58 | ||
| Fwd PE | 70.72 | ||
| P/S | 16.32 | ||
| P/FCF | 60.16 | ||
| P/OCF | 44.92 | ||
| P/B | 23.03 | ||
| P/tB | 31.12 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.81
EY1.23%
EPS(NY)3.24
Fwd EY1.41%
FCF(TTM)3.81
FCFY1.66%
OCF(TTM)5.1
OCFY2.23%
SpS14.04
BVpS9.95
TBVpS7.37
PEG (NY)29.24
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.73% | ||
| ROE | -2.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.38% | ||
| FCFM | 27.14% |
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-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 210.64% | ||
| Cap/Sales | 9.2% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 7.35 |
F-Score4
WACC10.93%
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)10.85%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%-4.55%
EPS Next Y2.79%
EPS Next 2Y8.79%
EPS Next 3Y12.86%
EPS Next 5Y17.65%
Revenue 1Y (TTM)25.46%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%22.57%
Revenue Next Year24.11%
Revenue Next 2Y22.28%
Revenue Next 3Y21.46%
Revenue Next 5Y21.26%
EBIT growth 1Y10.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year68.94%
EBIT Next 3Y37.73%
EBIT Next 5YN/A
FCF growth 1Y125.05%
FCF growth 3Y59.67%
FCF growth 5Y83.91%
OCF growth 1Y115.44%
OCF growth 3Y56.87%
OCF growth 5Y68.16%