ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
Europe - FRA:0ZC - US98980G1022 - Common Stock
278.75 EUR
+1.45 (+0.52%)
We assign a fundamental rating of 4 out of 10 to 0ZC. 0ZC was compared to 111 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 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.
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
0ZC has a Return On Assets (-0.65%) which is comparable to the rest of the industry.
0ZC has a Return On Equity (-2.31%) which is in line with 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 has a Gross Margin (76.87%) 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.
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.
The number of shares outstanding for 0ZC has been increased compared to 1 year ago.
0ZC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 0ZC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.22 indicates that 0ZC is not in any danger for bankruptcy at the moment.
0ZC's Altman-Z score of 7.22 is fine compared to the rest of the industry. 0ZC outperforms 79.28% 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.
Looking at the Debt to FCF ratio, with a value of 2.34, 0ZC is in the better half of the industry, outperforming 65.77% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that 0ZC is somewhat dependend on debt financing.
0ZC has a worse Debt to Equity ratio (0.95) than 81.08% of its industry peers.
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 | 0.95 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 7.22 |
ROIC/WACCN/A
WACC10.8%
2.3 Liquidity
0ZC has a Current Ratio of 2.01. This indicates that 0ZC is financially healthy and has no problem in meeting 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 75.68% 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 75.68% 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%.
0ZC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
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 21.82% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.88% on average over the next years. This is quite good.
EPS Next Y15.56%
EPS Next 2Y17.93%
EPS Next 3Y19.43%
EPS Next 5Y21.82%
Revenue Next Year23.29%
Revenue Next 2Y21.27%
Revenue Next 3Y20.77%
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
Based on the Price/Earnings ratio of 98.85, the valuation of 0ZC can be described as expensive.
0ZC's Price/Earnings is on the same level as the industry average.
0ZC is valuated expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 85.60, 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 63.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 0ZC to the average of the S&P500 Index (22.88), we can say 0ZC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.85 | ||
| Fwd PE | 85.6 |
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 | 70.68 | ||
| 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 19.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.35
PEG (5Y)1.44
EPS Next 2Y17.93%
EPS Next 3Y19.43%
5. Dividend
5.1 Amount
No dividends for 0ZC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (10/27/2025, 7:00:00 PM)
278.75
+1.45 (+0.52%)
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 Cap44.13B
Revenue(TTM)2.67B
Net Income(TTM)-41478000
Analysts80.71
Price Target281.15 (0.86%)
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)0.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)0%
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 | 98.85 | ||
| Fwd PE | 85.6 | ||
| P/S | 19.21 | ||
| P/FCF | 70.68 | ||
| P/OCF | 52.82 | ||
| P/B | 28.55 | ||
| P/tB | 38.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.82
EY1.01%
EPS(NY)3.26
Fwd EY1.17%
FCF(TTM)3.94
FCFY1.41%
OCF(TTM)5.28
OCFY1.89%
SpS14.51
BVpS9.76
TBVpS7.24
PEG (NY)6.35
PEG (5Y)1.44
Graham Number24.89
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 | 7.22 |
F-Score4
WACC10.8%
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 3Y19.43%
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 2Y21.27%
Revenue Next 3Y20.77%
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%
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 for 0ZC 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.
Can you provide the expected EPS growth for 0ZC stock?
The Earnings per Share (EPS) of ZSCALER INC (0ZC.DE) is expected to grow by 15.56% in the next year.