ZSCALER INC (1ZS.MI) Stock Fundamental Analysis
Europe - BIT:1ZS - US98980G1022 - Common Stock
279.85 EUR
+6 (+2.19%)
Taking everything into account, 1ZS scores 4 out of 10 in our fundamental rating. 1ZS was compared to 103 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.
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 (-0.65%) which is in line with its industry peers.
1ZS has a Return On Equity of -2.31%. This is comparable to the rest of the industry: 1ZS outperforms 43.69% 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
Looking at the Gross Margin, with a value of 76.87%, 1ZS is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
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 | 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.
The number of shares outstanding for 1ZS has been increased compared to 5 years ago.
1ZS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.20 indicates that 1ZS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.20, 1ZS is doing good in the industry, outperforming 76.70% of the companies in the same industry.
1ZS has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as 1ZS would need 2.34 years to pay back of all of its debts.
1ZS has a Debt to FCF ratio of 2.34. This is in the better half of the industry: 1ZS outperforms 66.02% of its industry peers.
1ZS has a Debt/Equity ratio of 0.95. This is a neutral value indicating 1ZS is somewhat dependend on debt financing.
1ZS has a Debt to Equity ratio of 0.95. This is amonst the worse of the industry: 1ZS underperforms 80.58% 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 | 0.95 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 7.2 |
ROIC/WACCN/A
WACC10.87%
2.3 Liquidity
A Current Ratio of 2.01 indicates that 1ZS has no problem at all paying its short term obligations.
The Current ratio of 1ZS (2.01) is better than 76.70% of its industry peers.
1ZS has a Quick Ratio of 2.01. This indicates that 1ZS is financially healthy and has no problem in meeting its short term obligations.
1ZS has a better Quick ratio (2.01) than 76.70% 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.
The Earnings Per Share has been growing by 68.71% on average over the past years. This is a very strong growth
The Revenue has grown by 23.31% in the past year. This is a very strong growth!
Measured over the past years, 1ZS shows a very strong growth in Revenue. The Revenue has been growing by 44.03% on average per year.
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 3Y19.43%
EPS Next 5Y21.82%
Revenue Next Year23.29%
Revenue Next 2Y21.27%
Revenue Next 3Y20.77%
Revenue Next 5Y19.88%
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.
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
A Price/Earnings ratio of 98.54 indicates a quite expensive valuation of 1ZS.
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 26.11.
A Price/Forward Earnings ratio of 85.31 indicates a quite expensive valuation of 1ZS.
1ZS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1ZS is more expensive than 63.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1ZS to the average of the S&P500 Index (22.55), we can say 1ZS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.54 | ||
| Fwd PE | 85.31 |
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 | 70.43 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as 1ZS's earnings are expected to grow with 19.43% in the coming years.
PEG (NY)6.33
PEG (5Y)1.43
EPS Next 2Y17.93%
EPS Next 3Y19.43%
5. Dividend
5.1 Amount
1ZS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ZS (10/28/2025, 7:00:00 PM)
279.85
+6 (+2.19%)
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 Cap44.30B
Revenue(TTM)2.67B
Net Income(TTM)-41478000
Analysts80.71
Price Target283.15 (1.18%)
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 | 98.54 | ||
| Fwd PE | 85.31 | ||
| P/S | 19.15 | ||
| P/FCF | 70.43 | ||
| P/OCF | 52.63 | ||
| P/B | 28.45 | ||
| P/tB | 38.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.84
EY1.01%
EPS(NY)3.28
Fwd EY1.17%
FCF(TTM)3.97
FCFY1.42%
OCF(TTM)5.32
OCFY1.9%
SpS14.62
BVpS9.84
TBVpS7.29
PEG (NY)6.33
PEG (5Y)1.43
Graham Number25.07
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 | 7.2 |
F-Score4
WACC10.87%
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 3Y19.43%
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 2Y21.27%
Revenue Next 3Y20.77%
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%
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.
Can you provide the valuation status for ZSCALER INC?
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.
What are the PE and PB ratios of ZSCALER INC (1ZS.MI) stock?
The Price/Earnings (PE) ratio for ZSCALER INC (1ZS.MI) is 98.54 and the Price/Book (PB) ratio is 28.45.
Can you provide the financial health for 1ZS stock?
The financial health rating of ZSCALER INC (1ZS.MI) is 6 / 10.