236.28 USD
-5.8 (-2.4%)
236.01 USD
-0.27 (-0.11%)
Taking everything into account, ZS scores 4 out of 10 in our fundamental rating. ZS was compared to 280 industry peers in the Software industry. The financial health of ZS is average, but there are quite some concerns on its profitability. ZS is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year ZS was profitable.
In the past year ZS had a positive cash flow from operations.
ZS had negative earnings in each of the past 5 years.
Each year in the past 5 years ZS had a positive operating cash flow.
1.2 Ratios
ZS's Return On Assets of -0.63% is in line compared to the rest of the industry. ZS outperforms 55.00% of its industry peers.
ZS has a Return On Equity of -2.07%. This is comparable to the rest of the industry: ZS outperforms 57.50% 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
With a decent Gross Margin value of 76.65%, ZS is doing good in the industry, outperforming 71.43% 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.
ZS 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 | 76.65% |
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
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.
ZS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.59 indicates that ZS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ZS (5.59) is better than 72.50% of its industry peers.
The Debt to FCF ratio of ZS is 2.00, which is a good value as it means it would take ZS, 2.00 years of fcf income to pay off all of its debts.
ZS's Debt to FCF ratio of 2.00 is fine compared to the rest of the industry. ZS outperforms 68.21% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that ZS is somewhat dependend on debt financing.
ZS has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: ZS underperforms 72.50% of its industry peers.
Although ZS 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 | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 5.59 |
ROIC/WACCN/A
WACC10.78%
2.3 Liquidity
A Current Ratio of 1.82 indicates that ZS should not have too much problems paying its short term obligations.
ZS has a Current ratio (1.82) which is in line with its industry peers.
A Quick Ratio of 1.82 indicates that ZS should not have too much problems paying its short term obligations.
ZS has a Quick ratio (1.82) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.47% over the past year.
ZS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
ZS shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.24%.
The Revenue has been growing by 44.03% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 21.82% on average over the next years. This is a very strong growth
Based on estimates for the next years, ZS will show a quite strong growth in Revenue. The Revenue will grow by 19.54% on average per year.
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
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 68.09, ZS can be considered very expensive at the moment.
ZS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.54, ZS is valued quite expensively.
The Price/Forward Earnings ratio is 51.32, which means the current valuation is very expensive for ZS.
The rest of the industry has a similar Price/Forward Earnings ratio as ZS.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, ZS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.09 | ||
| Fwd PE | 51.32 |
4.2 Price Multiples
ZS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ZS is valued a bit cheaper than the industry average as 61.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.43 | ||
| EV/EBITDA | 3939.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZS does not grow enough to justify the current Price/Earnings ratio.
ZS's earnings are expected to grow with 19.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.5
PEG (5Y)0.99
EPS Next 2Y18.48%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
No dividends for ZS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
236.28
-5.8 (-2.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners55.8%
Inst Owner Change69.61%
Ins Owners35.44%
Ins Owner Change-1.17%
Market Cap37.68B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target334.61 (41.62%)
Short Float %5.47%
Short Ratio3.5
Dividend
| Industry Rank | Sector 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)8.32%
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)0.89%
PT rev (3m)3.56%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)3.36%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.09 | ||
| Fwd PE | 51.32 | ||
| P/S | 13.3 | ||
| P/FCF | 44.43 | ||
| P/OCF | 34.59 | ||
| P/B | 19.01 | ||
| P/tB | 48.77 | ||
| EV/EBITDA | 3939.67 |
EPS(TTM)3.47
EY1.47%
EPS(NY)4.6
Fwd EY1.95%
FCF(TTM)5.32
FCFY2.25%
OCF(TTM)6.83
OCFY2.89%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)3.5
PEG (5Y)0.99
Graham Number31.15
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 | 5.59 |
F-Score4
WACC10.78%
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 / ZS FAQ
Can you provide the ChartMill fundamental rating for ZSCALER INC?
ChartMill assigns a fundamental rating of 4 / 10 to ZS.
What is the valuation status for ZS stock?
ChartMill assigns a valuation rating of 2 / 10 to ZSCALER INC (ZS). This can be considered as Overvalued.
How profitable is ZSCALER INC (ZS) stock?
ZSCALER INC (ZS) has a profitability rating of 3 / 10.
What is the valuation of ZSCALER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZSCALER INC (ZS) is 68.09 and the Price/Book (PB) ratio is 19.01.
How financially healthy is ZSCALER INC?
The financial health rating of ZSCALER INC (ZS) is 5 / 10.