ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe - FRA:0ZC - US98980G1022 - Common Stock
249.35 EUR
+4.2 (+1.71%)
0ZC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 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.
In the past 5 years 0ZC always reported negative net income.
Each year in the past 5 years 0ZC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.65%, 0ZC is in line with its industry, outperforming 42.99% of the companies in the same industry.
0ZC has a Return On Equity (-2.31%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.65% | ||
| ROE | -2.31% | ||
| 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 76.87%, 0ZC is in the better half of the industry, outperforming 60.75% of the companies in the same industry.
In the last couple of years the Gross Margin of 0ZC has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for 0ZC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.87% |
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.
The number of shares outstanding for 0ZC has been increased compared to 5 years ago.
The debt/assets ratio for 0ZC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.37 indicates that 0ZC is not in any danger for bankruptcy at the moment.
0ZC's Altman-Z score of 6.37 is fine compared to the rest of the industry. 0ZC outperforms 75.70% of its industry peers.
The Debt to FCF ratio of 0ZC is 2.34, which is a good value as it means it would take 0ZC, 2.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 0ZC (2.34) is better than 64.49% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that 0ZC is somewhat dependend on debt financing.
0ZC has a Debt to Equity ratio of 0.95. This is in the lower half of the industry: 0ZC underperforms 78.50% 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 | 0.95 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 6.37 |
ROIC/WACCN/A
WACC11.16%
2.3 Liquidity
A Current Ratio of 2.01 indicates that 0ZC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.01, 0ZC is in the better half of the industry, outperforming 77.57% of the companies in the same industry.
0ZC has a Quick Ratio of 2.01. This indicates that 0ZC is financially healthy and has no problem in meeting its short term obligations.
0ZC's Quick ratio of 2.01 is fine compared to the rest of the industry. 0ZC outperforms 77.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
0ZC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.82%.
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 23.31%.
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)2.82%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%1.14%
Revenue 1Y (TTM)23.31%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%21.31%
3.2 Future
The Earnings Per Share is expected to grow by 22.16% on average over the next years. This is a very strong growth
0ZC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.23% yearly.
EPS Next Y15.11%
EPS Next 2Y18.24%
EPS Next 3Y20.46%
EPS Next 5Y22.16%
Revenue Next Year23.29%
Revenue Next 2Y21.46%
Revenue Next 3Y20.61%
Revenue Next 5Y20.23%
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
The Price/Earnings ratio is 89.37, which means the current valuation is very expensive for 0ZC.
0ZC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 0ZC to the average of the S&P500 Index (27.32), we can say 0ZC is valued expensively.
With a Price/Forward Earnings ratio of 77.53, 0ZC can be considered very expensive at the moment.
0ZC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 0ZC is more expensive than 60.75% of the companies in the same industry.
0ZC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.37 | ||
| Fwd PE | 77.53 |
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 | 62.72 | ||
| EV/EBITDA | N/A |
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.
0ZC's earnings are expected to grow with 20.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.91
PEG (5Y)1.3
EPS Next 2Y18.24%
EPS Next 3Y20.46%
5. Dividend
5.1 Amount
No dividends for 0ZC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (9/26/2025, 7:00:00 PM)
249.35
+4.2 (+1.71%)
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 Cap38.82B
Analysts79.64
Price Target282.32 (13.22%)
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)8.32%
Min EPS beat(2)8.25%
Max EPS beat(2)8.39%
EPS beat(4)4
Avg EPS beat(4)11.04%
Min EPS beat(4)8.25%
Max EPS beat(4)18.11%
EPS beat(8)8
Avg EPS beat(8)19.74%
EPS beat(12)12
Avg EPS beat(12)18.67%
EPS beat(16)16
Avg EPS beat(16)20.39%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)0.57%
Revenue beat(8)5
Avg Revenue beat(8)0.13%
Revenue beat(12)8
Avg Revenue beat(12)0.42%
Revenue beat(16)12
Avg Revenue beat(16)1.18%
PT rev (1m)1.44%
PT rev (3m)14.12%
EPS NQ rev (1m)2.24%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.37 | ||
| Fwd PE | 77.53 | ||
| P/S | 17.05 | ||
| P/FCF | 62.72 | ||
| P/OCF | 46.87 | ||
| P/B | 25.33 | ||
| P/tB | 34.16 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.79
EY1.12%
EPS(NY)3.22
Fwd EY1.29%
FCF(TTM)3.98
FCFY1.59%
OCF(TTM)5.32
OCFY2.13%
SpS14.63
BVpS9.84
TBVpS7.3
PEG (NY)5.91
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.65% | ||
| ROE | -2.31% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.87% | ||
| FCFM | 27.19% |
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
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 3Y-0.4%
GM growth 5Y-0.23%
F-Score4
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 202.8% | ||
| Cap/Sales | 9.19% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 6.37 |
F-Score4
WACC11.16%
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)2.82%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%1.14%
EPS Next Y15.11%
EPS Next 2Y18.24%
EPS Next 3Y20.46%
EPS Next 5Y22.16%
Revenue 1Y (TTM)23.31%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%21.31%
Revenue Next Year23.29%
Revenue Next 2Y21.46%
Revenue Next 3Y20.61%
Revenue Next 5Y20.23%
EBIT growth 1Y-0.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.23%
FCF growth 3Y46.46%
FCF growth 5Y92.49%
OCF growth 1Y24.7%
OCF growth 3Y44.56%
OCF growth 5Y65.09%