236.28 USD
-5.8 (-2.4%)
236.01 USD
-0.27 (-0.11%)
Overall ZS gets a fundamental rating of 4 out of 10. We evaluated ZS against 280 industry peers in the Software industry. The financial health of ZS is average, but there are quite some concerns on its profitability. ZS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year ZS was profitable.
ZS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -0.63%, ZS is in line with its industry, outperforming 55.00% of the companies in the same industry.
The Return On Equity of ZS (-2.07%) is comparable to the rest of the industry.
| 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
ZS's Gross Margin of 76.65% is fine compared to the rest of the industry. ZS outperforms 71.43% of its industry peers.
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 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.
The number of shares outstanding for ZS has been increased compared to 1 year ago.
Compared to 5 years ago, ZS has more shares outstanding
Compared to 1 year ago, ZS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.46 indicates that ZS is not in any danger for bankruptcy at the moment.
ZS has a Altman-Z score of 5.46. This is in the better half of the industry: ZS outperforms 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 has a Debt to FCF ratio of 2.00. This is in the better half 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 5.46 |
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 of 1.82. This is comparable to the rest of the industry: ZS outperforms 55.36% of its industry peers.
ZS has a Quick Ratio of 1.82. This is a normal value and indicates that ZS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ZS (1.82) 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
ZS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
Measured over the past years, ZS shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.71% on average per year.
The Revenue has grown by 23.24% in the past year. This is a very strong growth!
ZS 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
Based on estimates for the next years, ZS will show a very strong growth in Earnings Per Share. The EPS will grow by 21.82% on average per year.
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
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
ZS is valuated quite expensively with a Price/Earnings ratio of 68.09.
ZS's Price/Earnings is on the same level as the industry average.
ZS is valuated expensively when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 51.32, which means the current valuation is very expensive for ZS.
ZS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ZS to the average of the S&P500 Index (23.78), we can say ZS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.09 | ||
| Fwd PE | 51.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZS.
61.79% of the companies in the same industry are more expensive than ZS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.43 | ||
| EV/EBITDA | 3835.56 |
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.
A more expensive valuation may be justified as ZS's earnings are expected to grow with 19.19% in the coming years.
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 | 0% |
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 | 0% |
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)0.72%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)3.36%
EPS NY rev (3m)3.77%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.47%
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 | 3835.56 |
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 | 5.46 |
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.