ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:0ZC - US98980G1022 - Common Stock
177.06 EUR
+0.16 (+0.09%)
We assign a fundamental rating of 4 out of 10 to 0ZC. 0ZC was compared to 119 industry peers in the Software industry. The financial health of 0ZC is average, but there are quite some concerns on its profitability. 0ZC is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year 0ZC was profitable.
- 0ZC had a positive operating cash flow in the past year.
- In the past 5 years 0ZC always reported negative net income.
- 0ZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 0ZC has a Return On Assets (-0.63%) which is comparable to the rest of the industry.
- The Return On Equity of 0ZC (-2.07%) is worse than 60.50% of its industry peers.
| 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
- 0ZC has a Gross Margin (76.65%) which is comparable to the rest of the industry.
- 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 | 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.
- 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 4.85 indicates that 0ZC is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.85, 0ZC is doing good in the industry, outperforming 68.07% of the companies in the same industry.
- 0ZC has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as 0ZC would need 2.00 years to pay back of all of its debts.
- 0ZC has a Debt to FCF ratio (2.00) which is in line with its industry peers.
- 0ZC has a Debt/Equity ratio of 0.86. This is a neutral value indicating 0ZC is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.86, 0ZC is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
- Although 0ZC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 4.85 |
ROIC/WACCN/A
WACC10.8%
2.3 Liquidity
- 0ZC has a Current 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.
- Looking at the Current ratio, with a value of 1.82, 0ZC is in the better half of the industry, outperforming 68.07% of the companies in the same industry.
- A Quick Ratio of 1.82 indicates that 0ZC should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.82, 0ZC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- 0ZC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
- 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 23.24%.
- 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.
- 0ZC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.01% yearly.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- Based on the Price/Earnings ratio of 59.82, the valuation of 0ZC can be described as expensive.
- 0ZC's Price/Earnings ratio is in line with the industry average.
- 0ZC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 44.90 indicates a quite expensive valuation of 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 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.82 | ||
| Fwd PE | 44.9 |
4.2 Price Multiples
- 73.95% of the companies in the same industry are cheaper than 0ZC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 0ZC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.97 | ||
| EV/EBITDA | 3311.39 |
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 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.03
PEG (5Y)0.87
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 59.82 and the Price/Book (PB) ratio is 16.67.