ZSCALER INC (1ZS.MI) Stock Fundamental Analysis
BIT:1ZS - Euronext Milan - US98980G1022 - Common Stock - Currency: EUR
Overall 1ZS gets a fundamental rating of 4 out of 10. We evaluated 1ZS against 107 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
1ZS had positive earnings in the past year.
1ZS had a positive operating cash flow in the past year.
1ZS had negative earnings in each of the past 5 years.
1ZS had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of 1ZS (-2.15%) is comparable to the rest of the 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
With a decent Gross Margin value of 77.38%, 1ZS is doing good in the industry, outperforming 66.36% of the companies in the same 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 | 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.
The number of shares outstanding for 1ZS has been increased compared to 5 years ago.
1ZS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.00 indicates that 1ZS is not in any danger for bankruptcy at the moment.
1ZS's Altman-Z score of 8.00 is fine compared to the rest of the industry. 1ZS outperforms 76.64% 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.
Looking at the Debt to FCF ratio, with a value of 1.66, 1ZS is in the better half of the industry, outperforming 71.96% of the companies in the same industry.
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 worse Debt to Equity ratio (0.64) than 70.09% 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 | 0.64 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 8 |
ROIC/WACCN/A
WACC11.09%
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
The Earnings Per Share has grown by an nice 10.85% over the past year.
The Earnings Per Share has been growing by 70.72% on average over the past years. This is a very strong growth
Looking at the last year, 1ZS shows a very strong growth in Revenue. The Revenue has grown by 25.46%.
The Revenue has been growing by 48.24% on average over the past years. This is a very strong growth!
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.
1ZS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.45% yearly.
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
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
With a Price/Earnings ratio of 89.93, 1ZS can be considered very expensive at the moment.
1ZS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.59, 1ZS is valued quite expensively.
The Price/Forward Earnings ratio is 79.41, which means the current valuation is very expensive for 1ZS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ZS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.39. 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 | 65.93 | ||
| 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
1ZS does not give a dividend.
| 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 | 65.93 | ||
| P/OCF | 49.24 | ||
| P/B | 25.24 | ||
| 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
WACC11.09%
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%