ZSCALER INC (1ZS.MI) Stock Fundamental Analysis
BIT:1ZS - Euronext Milan - US98980G1022 - Common Stock - Currency: EUR
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.
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.
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 Rank | Sector 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
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 8 |
ROIC/WACCN/A
WACC11.11%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.93 | ||
| Fwd PE | 79.41 |
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 | 65.94 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y7.82%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
No dividends for 1ZS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
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 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)8.9%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%