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ZSCALER INC (1ZS.MI) Stock Fundamental Analysis

BIT:1ZS - Euronext Milan - US98980G1022 - Common Stock - Currency: EUR

258.1  +258.1 (+Infinity%)

Fundamental Rating

4

1ZS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 107 industry peers in the Software industry. 1ZS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 1ZS is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

1ZS had positive earnings in the past year.
1ZS had a positive operating cash flow in the past year.
In the past 5 years 1ZS always reported negative net income.
In the past 5 years 1ZS always reported a positive cash flow from operatings.
1ZS.MI Yearly Net Income VS EBIT VS OCF VS FCF1ZS.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

1ZS has a Return On Assets of -0.73%. This is comparable to the rest of the industry: 1ZS outperforms 44.86% of its industry peers.
1ZS has a Return On Equity (-2.15%) which is in line with its industry peers.
Industry RankSector Rank
ROA -0.73%
ROE -2.15%
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
1ZS.MI Yearly ROA, ROE, ROIC1ZS.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60 -80

1.3 Margins

1ZS has a better Gross Margin (77.38%) than 66.36% of its industry peers.
1ZS's Gross Margin has been stable in the last couple of years.
1ZS does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 77.38%
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%
1ZS.MI Yearly Profit, Operating, Gross Margins1ZS.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

5

2. Health

2.1 Basic Checks

1ZS does not have a ROIC to compare to the WACC, probably because it is not profitable.
1ZS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1ZS has more shares outstanding
Compared to 1 year ago, 1ZS has an improved debt to assets ratio.
1ZS.MI Yearly Shares Outstanding1ZS.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
1ZS.MI Yearly Total Debt VS Total Assets1ZS.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 8.00 indicates that 1ZS is not in any danger for bankruptcy at the moment.
1ZS has a Altman-Z score of 8.00. This is in the better half of the industry: 1ZS outperforms 77.57% of its industry peers.
The Debt to FCF ratio of 1ZS is 1.66, which is an excellent value as it means it would take 1ZS, only 1.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ZS (1.66) is better than 71.96% of its industry peers.
1ZS has a Debt/Equity ratio of 0.64. This is a neutral value indicating 1ZS is somewhat dependend on debt financing.
1ZS has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: 1ZS underperforms 70.09% of its industry peers.
Although 1ZS 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 RankSector Rank
Debt/Equity 0.64
Debt/FCF 1.66
Altman-Z 8
ROIC/WACCN/A
WACC11.11%
1ZS.MI Yearly LT Debt VS Equity VS FCF1ZS.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.24 indicates that 1ZS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, 1ZS is in line with its industry, outperforming 46.73% of the companies in the same industry.
1ZS has a Quick Ratio of 1.24. This is a normal value and indicates that 1ZS is financially healthy and should not expect problems in meeting its short term obligations.
1ZS has a Quick ratio of 1.24. This is comparable to the rest of the industry: 1ZS outperforms 49.53% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.24
1ZS.MI Yearly Current Assets VS Current Liabilites1ZS.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

9

3. Growth

3.1 Past

1ZS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.85%, which is quite good.
Measured over the past years, 1ZS shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.72% on average per year.
1ZS shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.46%.
Measured over the past years, 1ZS shows a very strong growth in Revenue. The Revenue has been growing by 48.24% on average per year.
EPS 1Y (TTM)10.85%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)25.46%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%22.57%

3.2 Future

The Earnings Per Share is expected to grow by 17.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 21.45% on average over the next years. This is a very strong growth
EPS Next Y-0.94%
EPS Next 2Y7.82%
EPS Next 3Y11.92%
EPS Next 5Y17.65%
Revenue Next Year24.01%
Revenue Next 2Y22.24%
Revenue Next 3Y21.41%
Revenue Next 5Y21.45%

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.
1ZS.MI Yearly Revenue VS Estimates1ZS.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B
1ZS.MI Yearly EPS VS Estimates1ZS.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 5 10 15

1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 89.93, which means the current valuation is very expensive for 1ZS.
1ZS's Price/Earnings ratio is in line with the industry average.
1ZS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.53.
Based on the Price/Forward Earnings ratio of 79.41, the valuation of 1ZS can be described as expensive.
1ZS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. 1ZS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 89.93
Fwd PE 79.41
1ZS.MI Price Earnings VS Forward Price Earnings1ZS.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZS.
Industry RankSector Rank
P/FCF 65.94
EV/EBITDA N/A
1ZS.MI Per share data1ZS.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y7.82%
EPS Next 3Y11.92%

0

5. Dividend

5.1 Amount

No dividends for 1ZS!.
Industry RankSector Rank
Dividend Yield N/A

ZSCALER INC

BIT:1ZS (6/3/2025, 7:00:00 PM)

258.1

+258.1 (+Infinity%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-29 2025-05-29/amc
Earnings (Next)09-01 2025-09-01/amc
Inst Owners54.13%
Inst Owner ChangeN/A
Ins Owners37.29%
Ins Owner ChangeN/A
Market Cap39.93B
Analysts80.36
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.9%
Min EPS beat(2)8.39%
Max EPS beat(2)9.41%
EPS beat(4)4
Avg EPS beat(4)14.72%
Min EPS beat(4)8.39%
Max EPS beat(4)22.98%
EPS beat(8)8
Avg EPS beat(8)22.02%
EPS beat(12)12
Avg EPS beat(12)19.58%
EPS beat(16)16
Avg EPS beat(16)23.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)1.35%
Revenue beat(8)6
Avg Revenue beat(8)0.62%
Revenue beat(12)9
Avg Revenue beat(12)0.61%
Revenue beat(16)13
Avg Revenue beat(16)1.4%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 89.93
Fwd PE 79.41
P/S 17.89
P/FCF 65.94
P/OCF 49.24
P/B 25.25
P/tB 34.11
EV/EBITDA N/A
EPS(TTM)2.87
EY1.11%
EPS(NY)3.25
Fwd EY1.26%
FCF(TTM)3.91
FCFY1.52%
OCF(TTM)5.24
OCFY2.03%
SpS14.43
BVpS10.22
TBVpS7.57
PEG (NY)N/A
PEG (5Y)1.27
Profitability
Industry RankSector Rank
ROA -0.73%
ROE -2.15%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 77.38%
FCFM 27.14%
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-Score4
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 1.66
Debt/EBITDA N/A
Cap/Depr 210.64%
Cap/Sales 9.2%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.24
Quick Ratio 1.24
Altman-Z 8
F-Score4
WACC11.11%
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)10.85%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%-4.55%
EPS Next Y-0.94%
EPS Next 2Y7.82%
EPS Next 3Y11.92%
EPS Next 5Y17.65%
Revenue 1Y (TTM)25.46%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%22.57%
Revenue Next Year24.01%
Revenue Next 2Y22.24%
Revenue Next 3Y21.41%
Revenue Next 5Y21.45%
EBIT growth 1Y10.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.45%
EBIT Next 3Y37.05%
EBIT Next 5YN/A
FCF growth 1Y125.05%
FCF growth 3Y59.67%
FCF growth 5Y83.91%
OCF growth 1Y115.44%
OCF growth 3Y56.87%
OCF growth 5Y68.16%