ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe - FRA:0ZC - US98980G1022 - Common Stock
273.7 EUR
+11.05 (+4.21%)
We assign a fundamental rating of 4 out of 10 to 0ZC. 0ZC was compared to 110 industry peers in the Software industry. The financial health of 0ZC is average, but there are quite some concerns on its profitability. 0ZC shows excellent growth, but is valued quite expensive already.
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
Looking at the Return On Assets, with a value of -0.65%, 0ZC is in line with its industry, outperforming 43.64% of the companies in the same industry.
0ZC's Return On Equity of -2.31% is in line compared to the rest of the industry. 0ZC outperforms 43.64% of its industry peers.
| 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
0ZC's Gross Margin of 76.87% is fine compared to the rest of the industry. 0ZC outperforms 61.82% of its industry peers.
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 | 76.87% |
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.
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.
0ZC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.81 indicates that 0ZC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.81, 0ZC is in the better half of the industry, outperforming 75.45% of the companies in the same industry.
0ZC has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as 0ZC would need 2.34 years to pay back of all of its debts.
0ZC's Debt to FCF ratio of 2.34 is fine compared to the rest of the industry. 0ZC outperforms 63.64% 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 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 | 0.95 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 6.81 |
ROIC/WACCN/A
WACC10.78%
2.3 Liquidity
A Current Ratio of 2.01 indicates that 0ZC has no problem at all paying its short term obligations.
0ZC has a better Current ratio (2.01) than 75.45% of its industry peers.
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 has a Quick ratio of 2.01. This is in the better half of the industry: 0ZC outperforms 75.45% 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%.
0ZC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 44.03% yearly.
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
0ZC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.82% yearly.
0ZC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.88% yearly.
EPS Next Y15.56%
EPS Next 2Y17.93%
EPS Next 3Y19.82%
EPS Next 5Y21.82%
Revenue Next Year23.29%
Revenue Next 2Y21.51%
Revenue Next 3Y20.8%
Revenue Next 5Y19.88%
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
With a Price/Earnings ratio of 96.71, 0ZC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 0ZC.
When comparing the Price/Earnings ratio of 0ZC to the average of the S&P500 Index (27.67), we can say 0ZC is valued expensively.
Based on the Price/Forward Earnings ratio of 83.67, the valuation of 0ZC can be described as expensive.
62.73% of the companies in the same industry are cheaper than 0ZC, based on the Price/Forward Earnings ratio.
0ZC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.71 | ||
| Fwd PE | 83.67 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as 0ZC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.08 | ||
| 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.
A more expensive valuation may be justified as 0ZC's earnings are expected to grow with 19.82% in the coming years.
PEG (NY)6.22
PEG (5Y)1.41
EPS Next 2Y17.93%
EPS Next 3Y19.82%
5. Dividend
5.1 Amount
0ZC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (10/23/2025, 7:00:00 PM)
273.7
+11.05 (+4.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.62%
Inst Owner ChangeN/A
Ins Owners35.96%
Ins Owner ChangeN/A
Market Cap43.33B
Revenue(TTM)2.67B
Net Income(TTM)-41478000
Analysts80.71
Price Target281.15 (2.72%)
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)-0.42%
PT rev (3m)2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.71 | ||
| Fwd PE | 83.67 | ||
| P/S | 18.78 | ||
| P/FCF | 69.08 | ||
| P/OCF | 51.62 | ||
| P/B | 27.9 | ||
| P/tB | 37.63 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.83
EY1.03%
EPS(NY)3.27
Fwd EY1.2%
FCF(TTM)3.96
FCFY1.45%
OCF(TTM)5.3
OCFY1.94%
SpS14.57
BVpS9.81
TBVpS7.27
PEG (NY)6.22
PEG (5Y)1.41
Graham Number24.99
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
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 Turnover0.42
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 | 6.81 |
F-Score4
WACC10.78%
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 Y15.56%
EPS Next 2Y17.93%
EPS Next 3Y19.82%
EPS Next 5Y21.82%
Revenue 1Y (TTM)23.31%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%21.31%
Revenue Next Year23.29%
Revenue Next 2Y21.51%
Revenue Next 3Y20.8%
Revenue Next 5Y19.88%
EBIT growth 1Y-0.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year55.15%
EBIT Next 3Y33.84%
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%