ZSCALER INC (1ZS.MI) Stock Fundamental Analysis
BIT:1ZS - US98980G1022 - Common Stock
236.2 EUR
-14.95 (-5.95%)
We assign a fundamental rating of 4 out of 10 to 1ZS. 1ZS was compared to 101 industry peers in the Software industry. While 1ZS seems to be doing ok healthwise, there are quite some concerns on its profitability. 1ZS is valued quite expensive, but it does show an excellent growth.
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
1ZS has a Return On Assets (-0.73%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -2.15%, 1ZS is in line with its industry, outperforming 41.67% of the companies in the same industry.
| 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 Gross Margin of 77.38%. This is in the better half of the industry: 1ZS outperforms 62.96% of its industry peers.
In the last couple of years the Gross Margin of 1ZS has remained more or less at the same level.
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.
Compared to 1 year ago, 1ZS has more shares outstanding
1ZS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ZS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.54 indicates that 1ZS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.54, 1ZS is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
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.
1ZS's Debt to FCF ratio of 1.66 is fine compared to the rest of the industry. 1ZS outperforms 68.52% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that 1ZS is somewhat dependend on debt financing.
1ZS has a worse Debt to Equity ratio (0.64) than 66.67% 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 | 7.54 |
ROIC/WACCN/A
WACC11.06%
2.3 Liquidity
A Current Ratio of 1.24 indicates that 1ZS should not have too much problems paying its short term obligations.
1ZS has a Current ratio of 1.24. This is comparable to the rest of the industry: 1ZS outperforms 47.22% of its industry peers.
A Quick Ratio of 1.24 indicates that 1ZS should not have too much problems paying its short term obligations.
1ZS's Quick ratio of 1.24 is in line compared to the rest of the industry. 1ZS outperforms 50.00% 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.
The Revenue has grown by 25.46% in the past year. This is a very strong growth!
1ZS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.24% yearly.
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
1ZS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.65% yearly.
Based on estimates for the next years, 1ZS will show a very strong growth in Revenue. The Revenue will grow by 21.26% on average per year.
EPS Next Y2.79%
EPS Next 2Y8.79%
EPS Next 3Y12.86%
EPS Next 5Y17.65%
Revenue Next Year24.11%
Revenue Next 2Y22.28%
Revenue Next 3Y21.46%
Revenue Next 5Y21.26%
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
1ZS is valuated quite expensively with a Price/Earnings ratio of 84.36.
1ZS's Price/Earnings is on the same level as the industry average.
1ZS is valuated expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 72.93, 1ZS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ZS.
The average S&P500 Price/Forward Earnings ratio is at 22.54. 1ZS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.36 | ||
| Fwd PE | 72.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ZS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.04 | ||
| 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 12.86% in the coming years.
PEG (NY)30.23
PEG (5Y)1.19
EPS Next 2Y8.79%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
No dividends for 1ZS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ZS (8/20/2025, 7:00:00 PM)
236.2
-14.95 (-5.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners58.45%
Inst Owner ChangeN/A
Ins Owners36.57%
Ins Owner ChangeN/A
Market Cap36.78B
Analysts80
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)-0.02%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.25%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.36 | ||
| Fwd PE | 72.93 | ||
| P/S | 16.83 | ||
| P/FCF | 62.04 | ||
| P/OCF | 46.33 | ||
| P/B | 23.75 | ||
| P/tB | 32.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.8
EY1.19%
EPS(NY)3.24
Fwd EY1.37%
FCF(TTM)3.81
FCFY1.61%
OCF(TTM)5.1
OCFY2.16%
SpS14.03
BVpS9.94
TBVpS7.36
PEG (NY)30.23
PEG (5Y)1.19
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 | 7.54 |
F-Score4
WACC11.06%
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 Y2.79%
EPS Next 2Y8.79%
EPS Next 3Y12.86%
EPS Next 5Y17.65%
Revenue 1Y (TTM)25.46%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%22.57%
Revenue Next Year24.11%
Revenue Next 2Y22.28%
Revenue Next 3Y21.46%
Revenue Next 5Y21.26%
EBIT growth 1Y10.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year68.94%
EBIT Next 3Y37.73%
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%