ZSCALER INC (1ZS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ZS - US98980G1022 - Common Stock
184.14 EUR
-25.36 (-12.11%)
Taking everything into account, 1ZS scores 4 out of 10 in our fundamental rating. 1ZS was compared to 119 industry peers in the Software industry. The financial health of 1ZS is average, but 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.
- 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 worse Return On Assets (-0.63%) than 60.50% of its industry peers.
- 1ZS has a worse Return On Equity (-2.07%) than 61.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2.07% | ||
| 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
- The Gross Margin of 1ZS (76.65%) is comparable to the rest of the industry.
- 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 | 76.65% |
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.
- Compared to 1 year ago, 1ZS has more shares outstanding
- 1ZS has more shares outstanding than it did 5 years ago.
- 1ZS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.03 indicates that 1ZS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1ZS (5.03) is better than 69.75% of its industry peers.
- The Debt to FCF ratio of 1ZS is 2.00, which is a good value as it means it would take 1ZS, 2.00 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 2.00, 1ZS perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
- A Debt/Equity ratio of 0.86 indicates that 1ZS is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1ZS (0.86) is worse than 77.31% of its industry peers.
- 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 | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 5.03 |
ROIC/WACCN/A
WACC10.9%
2.3 Liquidity
- 1ZS has a Current Ratio of 1.82. This is a normal value and indicates that 1ZS is financially healthy and should not expect problems in meeting its short term obligations.
- 1ZS's Current ratio of 1.82 is fine compared to the rest of the industry. 1ZS outperforms 67.23% of its industry peers.
- 1ZS has a Quick Ratio of 1.82. 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 better Quick ratio (1.82) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- 1ZS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
- 1ZS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
- 1ZS shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.24%.
- 1ZS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 44.03% yearly.
EPS 1Y (TTM)5.47%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%24.68%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
3.2 Future
- 1ZS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.82% yearly.
- The Revenue is expected to grow by 19.54% on average over the next years. This is quite good.
EPS Next Y19.45%
EPS Next 2Y18.48%
EPS Next 3Y19.19%
EPS Next 5Y21.82%
Revenue Next Year23.88%
Revenue Next 2Y21.58%
Revenue Next 3Y20.69%
Revenue Next 5Y19.54%
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
- Based on the Price/Earnings ratio of 62.21, the valuation of 1ZS can be described as expensive.
- 1ZS's Price/Earnings is on the same level as the industry average.
- 1ZS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.32.
- A Price/Forward Earnings ratio of 46.90 indicates a quite expensive valuation of 1ZS.
- 1ZS's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, 1ZS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.21 | ||
| Fwd PE | 46.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ZS is valued a bit more expensive than the industry average as 74.79% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1ZS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.61 | ||
| EV/EBITDA | 3470.8 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ZS does not grow enough to justify the current Price/Earnings ratio.
- 1ZS's earnings are expected to grow with 19.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.2
PEG (5Y)0.91
EPS Next 2Y18.48%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
- No dividends for 1ZS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ZS (1/12/2026, 7:00:00 PM)
184.14
-25.36 (-12.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-25 2025-11-25/amc
Earnings (Next)03-03 2026-03-03/amc
Inst Owners55.8%
Inst Owner ChangeN/A
Ins Owners35.44%
Ins Owner ChangeN/A
Market Cap29.36B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target287.43 (56.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)8.4%
EPS beat(4)4
Avg EPS beat(4)8.61%
Min EPS beat(4)8.25%
Max EPS beat(4)9.41%
EPS beat(8)8
Avg EPS beat(8)16.65%
EPS beat(12)12
Avg EPS beat(12)18.75%
EPS beat(16)16
Avg EPS beat(16)20.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)-1.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)-1.03%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.3%
Revenue beat(16)11
Avg Revenue beat(16)0.65%
PT rev (1m)0.94%
PT rev (3m)N/A
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)3.36%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.21 | ||
| Fwd PE | 46.9 | ||
| P/S | 12.16 | ||
| P/FCF | 40.61 | ||
| P/OCF | 31.61 | ||
| P/B | 17.37 | ||
| P/tB | 44.58 | ||
| EV/EBITDA | 3470.8 |
EPS(TTM)2.96
EY1.61%
EPS(NY)3.93
Fwd EY2.13%
FCF(TTM)4.53
FCFY2.46%
OCF(TTM)5.82
OCFY3.16%
SpS15.15
BVpS10.6
TBVpS4.13
PEG (NY)3.2
PEG (5Y)0.91
Graham Number26.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -2.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.65% | ||
| FCFM | 29.93% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 191.34 | ||
| Cap/Depr | 176.38% | ||
| Cap/Sales | 8.52% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 12262.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 5.03 |
F-Score4
WACC10.9%
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)5.47%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%24.68%
EPS Next Y19.45%
EPS Next 2Y18.48%
EPS Next 3Y19.19%
EPS Next 5Y21.82%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
Revenue Next Year23.88%
Revenue Next 2Y21.58%
Revenue Next 3Y20.69%
Revenue Next 5Y19.54%
EBIT growth 1Y-20.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.68%
EBIT Next 3Y33.58%
EBIT Next 5YN/A
FCF growth 1Y83.29%
FCF growth 3Y46.46%
FCF growth 5Y92.49%
OCF growth 1Y83.19%
OCF growth 3Y44.56%
OCF growth 5Y65.09%
ZSCALER INC / 1ZS.MI FAQ
What is the ChartMill fundamental rating of ZSCALER INC (1ZS.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1ZS.MI.
What is the valuation status of ZSCALER INC (1ZS.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to ZSCALER INC (1ZS.MI). This can be considered as Overvalued.
How profitable is ZSCALER INC (1ZS.MI) stock?
ZSCALER INC (1ZS.MI) has a profitability rating of 2 / 10.
Can you provide the financial health for 1ZS stock?
The financial health rating of ZSCALER INC (1ZS.MI) is 5 / 10.
What is the expected EPS growth for ZSCALER INC (1ZS.MI) stock?
The Earnings per Share (EPS) of ZSCALER INC (1ZS.MI) is expected to grow by 19.45% in the next year.