Logo image of ZS

ZSCALER INC (ZS) Stock Fundamental Analysis

NASDAQ:ZS - Nasdaq - US98980G1022 - Common Stock - Currency: USD

301.95  +0.52 (+0.17%)

After market: 302.3 +0.35 (+0.12%)

Fundamental Rating

4

Taking everything into account, ZS scores 4 out of 10 in our fundamental rating. ZS was compared to 284 industry peers in the Software industry. ZS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ZS shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

ZS had positive earnings in the past year.
In the past year ZS had a positive cash flow from operations.
In the past 5 years ZS always reported negative net income.
In the past 5 years ZS always reported a positive cash flow from operatings.
ZS Yearly Net Income VS EBIT VS OCF VS FCFZS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

The Return On Assets of ZS (-0.73%) is better than 61.97% of its industry peers.
ZS's Return On Equity of -2.15% is fine compared to the rest of the industry. ZS outperforms 63.73% of its industry peers.
Industry RankSector 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
ZS Yearly ROA, ROE, ROICZS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60 -80

1.3 Margins

Looking at the Gross Margin, with a value of 77.38%, ZS is in the better half of the industry, outperforming 73.94% of the companies in the same industry.
In the last couple of years the Gross Margin of ZS has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for ZS so they could not be analyzed.
Industry RankSector 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%
ZS Yearly Profit, Operating, Gross MarginsZS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

More info and screens

5

2. Health

2.1 Basic Checks

ZS does not have a ROIC to compare to the WACC, probably because it is not profitable.
ZS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ZS has been increased compared to 5 years ago.
The debt/assets ratio for ZS has been reduced compared to a year ago.
ZS Yearly Shares OutstandingZS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
ZS Yearly Total Debt VS Total AssetsZS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

ZS has an Altman-Z score of 8.19. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZS (8.19) is better than 81.69% of its industry peers.
ZS has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
ZS's Debt to FCF ratio of 1.66 is fine compared to the rest of the industry. ZS outperforms 70.42% of its industry peers.
ZS has a Debt/Equity ratio of 0.64. This is a neutral value indicating ZS is somewhat dependend on debt financing.
ZS's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. ZS is outperformed by 67.61% of its industry peers.
Even though the debt/equity ratio score it not favorable for ZS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 1.66
Altman-Z 8.19
ROIC/WACCN/A
WACC8.84%
ZS Yearly LT Debt VS Equity VS FCFZS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.24 indicates that ZS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, ZS is doing worse than 61.62% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that ZS should not have too much problems paying its short term obligations.
The Quick ratio of ZS (1.24) is worse than 60.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.24
ZS Yearly Current Assets VS Current LiabilitesZS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

More info and screens

9

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, ZS shows a very strong growth in Revenue. The Revenue has grown by 25.46%.
ZS 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

Based on estimates for the next years, ZS will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.65% on average per year.
ZS 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.
ZS Yearly Revenue VS EstimatesZS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B
ZS Yearly EPS VS EstimatesZS Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 5 10 15

More info and screens

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 92.34, ZS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ZS.
ZS is valuated expensively when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
ZS is valuated quite expensively with a Price/Forward Earnings ratio of 81.42.
The rest of the industry has a similar Price/Forward Earnings ratio as ZS.
The average S&P500 Price/Forward Earnings ratio is at 22.13. ZS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 92.34
Fwd PE 81.42
ZS Price Earnings VS Forward Price EarningsZS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

ZS's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 67.6
EV/EBITDA N/A
ZS Per share dataZS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y7.82%
EPS Next 3Y11.92%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for ZS!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

ZSCALER INC

NASDAQ:ZS (6/13/2025, 8:00:02 PM)

After market: 302.3 +0.35 (+0.12%)

301.95

+0.52 (+0.17%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-29 2025-05-29/amc
Earnings (Next)09-01 2025-09-01/amc
Inst Owners58.21%
Inst Owner Change11.23%
Ins Owners36.7%
Ins Owner Change2.05%
Market Cap46.72B
Analysts80.36
Price Target283.9 (-5.98%)
Short Float %8.96%
Short Ratio3.17
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
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)16.57%
PT rev (3m)21.21%
EPS NQ rev (1m)3.22%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)2.39%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.66%
Valuation
Industry RankSector Rank
PE 92.34
Fwd PE 81.42
P/S 18.34
P/FCF 67.6
P/OCF 50.48
P/B 25.88
P/tB 34.97
EV/EBITDA N/A
EPS(TTM)3.27
EY1.08%
EPS(NY)3.71
Fwd EY1.23%
FCF(TTM)4.47
FCFY1.48%
OCF(TTM)5.98
OCFY1.98%
SpS16.46
BVpS11.67
TBVpS8.63
PEG (NY)N/A
PEG (5Y)1.31
Profitability
Industry RankSector 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 RankSector 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 8.19
F-Score4
WACC8.84%
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%