ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
FRA:0ZC - Deutsche Boerse Ag - US98980G1022 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 0ZC. 0ZC was compared to 95 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
0ZC had positive earnings in the past year.
0ZC had a positive operating cash flow in the past year.
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
0ZC has a Return On Assets (-0.31%) which is in line with its industry peers.
With a Return On Equity value of -0.97%, 0ZC perfoms like the industry average, outperforming 45.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.97% | ||
| 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
0ZC has a better Gross Margin (77.77%) than 69.47% of its industry peers.
0ZC's Gross Margin has been stable in the last couple of years.
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 | 77.77% |
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.
The number of shares outstanding for 0ZC has been increased compared to 5 years ago.
0ZC has a better debt/assets ratio than last year.
2.2 Solvency
0ZC has an Altman-Z score of 6.33. This indicates that 0ZC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.33, 0ZC is in the better half of the industry, outperforming 75.79% of the companies in the same industry.
The Debt to FCF ratio of 0ZC is 1.65, which is an excellent value as it means it would take 0ZC, only 1.65 years of fcf income to pay off all of its debts.
0ZC has a Debt to FCF ratio of 1.65. This is in the better half of the industry: 0ZC outperforms 74.74% of its industry peers.
0ZC has a Debt/Equity ratio of 0.71. This is a neutral value indicating 0ZC is somewhat dependend on debt financing.
0ZC has a worse Debt to Equity ratio (0.71) than 70.53% 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 | 0.71 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 6.33 |
ROIC/WACCN/A
WACC10.26%
2.3 Liquidity
0ZC has a Current Ratio of 1.20. 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 Current ratio (1.20) which is comparable to the rest of the industry.
0ZC has a Quick Ratio of 1.20. This is a normal value and indicates that 0ZC is financially healthy and should not expect problems in meeting its short term obligations.
0ZC's Quick ratio of 1.20 is in line compared to the rest of the industry. 0ZC outperforms 51.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.80% over the past year.
Measured over the past years, 0ZC shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.72% on average per year.
0ZC shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.77%.
Measured over the past years, 0ZC shows a very strong growth in Revenue. The Revenue has been growing by 48.24% on average per year.
EPS 1Y (TTM)29.8%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%2.63%
Revenue 1Y (TTM)27.77%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%23.41%
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 15.50% on average per year.
0ZC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.34% yearly.
EPS Next Y-0.66%
EPS Next 2Y8.06%
EPS Next 3Y11.92%
EPS Next 5Y15.5%
Revenue Next Year23.65%
Revenue Next 2Y22.04%
Revenue Next 3Y21.44%
Revenue Next 5Y21.34%
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 67.39, 0ZC can be considered very expensive at the moment.
0ZC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.88, 0ZC is valued quite expensively.
The Price/Forward Earnings ratio is 59.87, which means the current valuation is very expensive for 0ZC.
0ZC's Price/Forward Earnings is on the same level as the industry average.
0ZC is valuated expensively when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.39 | ||
| Fwd PE | 59.87 |
4.2 Price Multiples
0ZC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.67 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y8.06%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
No dividends for 0ZC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (4/30/2025, 7:00:00 PM)
196.1
+2.04 (+1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.13%
Inst Owner ChangeN/A
Ins Owners37.29%
Ins Owner ChangeN/A
Market Cap30.34B
Analysts79.25
Price Target210.18 (7.18%)
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)13.76%
Min EPS beat(2)9.41%
Max EPS beat(2)18.11%
EPS beat(4)4
Avg EPS beat(4)20.21%
Min EPS beat(4)9.41%
Max EPS beat(4)30.36%
EPS beat(8)8
Avg EPS beat(8)22.22%
EPS beat(12)12
Avg EPS beat(12)23.55%
EPS beat(16)16
Avg EPS beat(16)29.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)0.57%
Revenue beat(4)3
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)1.35%
Revenue beat(8)6
Avg Revenue beat(8)0.5%
Revenue beat(12)10
Avg Revenue beat(12)0.93%
Revenue beat(16)14
Avg Revenue beat(16)1.77%
PT rev (1m)-5.16%
PT rev (3m)-5.82%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.39 | ||
| Fwd PE | 59.87 | ||
| P/S | 14.25 | ||
| P/FCF | 49.67 | ||
| P/OCF | 38.87 | ||
| P/B | 21.47 | ||
| P/tB | 30.43 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.91
EY1.48%
EPS(NY)3.28
Fwd EY1.67%
FCF(TTM)3.95
FCFY2.01%
OCF(TTM)5.05
OCFY2.57%
SpS13.76
BVpS9.13
TBVpS6.44
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.77% | ||
| FCFM | 28.69% |
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 193.28% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 6.33 |
F-Score6
WACC10.26%
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)29.8%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%2.63%
EPS Next Y-0.66%
EPS Next 2Y8.06%
EPS Next 3Y11.92%
EPS Next 5Y15.5%
Revenue 1Y (TTM)27.77%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%23.41%
Revenue Next Year23.65%
Revenue Next 2Y22.04%
Revenue Next 3Y21.44%
Revenue Next 5Y21.34%
EBIT growth 1Y45.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.45%
EBIT Next 3Y36.88%
EBIT Next 5YN/A
FCF growth 1Y150.86%
FCF growth 3Y59.67%
FCF growth 5Y83.91%
OCF growth 1Y122.87%
OCF growth 3Y56.87%
OCF growth 5Y68.16%