ZSCALER INC (1ZS.MI) Stock Fundamental Analysis
Europe - BIT:1ZS - US98980G1022 - Common Stock
271.75 EUR
+2.15 (+0.8%)
We assign a fundamental rating of 4 out of 10 to 1ZS. 1ZS was compared to 110 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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year 1ZS was profitable.
1ZS had a positive operating cash flow in the past year.
1ZS had negative earnings in each of the past 5 years.
In the past 5 years 1ZS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1ZS (-0.65%) is comparable to the rest of the industry.
1ZS's Return On Equity of -2.31% is in line compared to the rest of the industry. 1ZS outperforms 42.73% 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
1ZS's Gross Margin of 76.87% is fine compared to the rest of the industry. 1ZS outperforms 60.91% of its industry peers.
1ZS's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for 1ZS 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
1ZS does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for 1ZS has been increased compared to 1 year ago.
Compared to 5 years ago, 1ZS has more shares outstanding
Compared to 1 year ago, 1ZS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.04 indicates that 1ZS is not in any danger for bankruptcy at the moment.
1ZS has a Altman-Z score of 7.04. This is in the better half of the industry: 1ZS outperforms 76.36% of its industry peers.
The Debt to FCF ratio of 1ZS is 2.34, which is a good value as it means it would take 1ZS, 2.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ZS (2.34) is better than 62.73% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that 1ZS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, 1ZS is not doing good in the industry: 80.91% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for 1ZS, 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 | 7.04 |
ROIC/WACCN/A
WACC10.82%
2.3 Liquidity
1ZS has a Current Ratio of 2.01. This indicates that 1ZS is financially healthy and has no problem in meeting its short term obligations.
1ZS has a Current ratio of 2.01. This is in the better half of the industry: 1ZS outperforms 74.55% of its industry peers.
A Quick Ratio of 2.01 indicates that 1ZS has no problem at all paying its short term obligations.
1ZS has a better Quick ratio (2.01) than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.82% over the past year.
1ZS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
Looking at the last year, 1ZS shows a very strong growth in Revenue. The Revenue has grown by 23.31%.
The Revenue has been growing by 44.03% on average over the past years. This is a very strong growth!
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 3Y19.82%
EPS Next 5Y21.82%
Revenue Next Year23.29%
Revenue Next 2Y21.51%
Revenue Next 3Y20.8%
Revenue Next 5Y19.88%
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.
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
1ZS is valuated quite expensively with a Price/Earnings ratio of 96.02.
The rest of the industry has a similar Price/Earnings ratio as 1ZS.
1ZS is valuated expensively when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
1ZS is valuated quite expensively with a Price/Forward Earnings ratio of 83.22.
Based on the Price/Forward Earnings ratio, 1ZS is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
1ZS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.02 | ||
| Fwd PE | 83.22 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.71 | ||
| 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 1ZS's earnings are expected to grow with 19.82% in the coming years.
PEG (NY)6.17
PEG (5Y)1.4
EPS Next 2Y17.93%
EPS Next 3Y19.82%
5. Dividend
5.1 Amount
1ZS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ZS (10/13/2025, 7:00:00 PM)
271.75
+2.15 (+0.8%)
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 Cap43.02B
Revenue(TTM)2.67B
Net Income(TTM)-41478000
Analysts80.71
Price TargetN/A
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 YearsN/A
Div Non Decr YearsN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)2.16%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)3.08%
Revenue NQ rev (3m)3.03%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.02 | ||
| Fwd PE | 83.22 | ||
| P/S | 18.68 | ||
| P/FCF | 68.71 | ||
| P/OCF | 51.35 | ||
| P/B | 27.75 | ||
| P/tB | 37.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.83
EY1.04%
EPS(NY)3.27
Fwd EY1.2%
FCF(TTM)3.96
FCFY1.46%
OCF(TTM)5.29
OCFY1.95%
SpS14.55
BVpS9.79
TBVpS7.26
PEG (NY)6.17
PEG (5Y)1.4
Graham Number24.97
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 | 7.04 |
F-Score4
WACC10.82%
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%