167.33 USD
-2.06 (-1.22%)
At close: Feb 6, 2026
168 USD
+0.67 (+0.4%)
After Hours: 2/6/2026, 8:12:39 PM
ZS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. While ZS seems to be doing ok healthwise, 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.
- 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.
1.2 Ratios
- With a Return On Assets value of -0.63%, ZS perfoms like the industry average, outperforming 53.96% of the companies in the same industry.
- ZS has a Return On Equity (-2.07%) which 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 has a better Gross Margin (76.65%) than 70.86% of its industry peers.
- ZS's Gross Margin has been stable in the last couple of years.
- 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.
- The number of shares outstanding for ZS has been increased compared to 1 year ago.
- The number of shares outstanding for ZS has been increased compared to 5 years ago.
- Compared to 1 year ago, ZS has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.00 indicates that ZS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.00, ZS is doing good in the industry, outperforming 71.58% of the companies in the same industry.
- 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 better Debt to FCF ratio (2.00) than 67.27% of its industry peers.
- A Debt/Equity ratio of 0.86 indicates that ZS is somewhat dependend on debt financing.
- ZS's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. ZS is outperformed by 73.38% 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 | 4 |
ROIC/WACCN/A
WACC10.73%
2.3 Liquidity
- A Current Ratio of 1.82 indicates that ZS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.82, ZS is in line with its industry, outperforming 54.32% of the companies in the same industry.
- 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
- ZS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
- 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 23.24% in the past year. This is a very strong growth!
- Measured over the past years, ZS shows a very strong growth in Revenue. The Revenue has been growing by 44.03% on average per year.
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 19.81% on average over the next years. This is quite good.
- Based on estimates for the next years, ZS will show a very strong growth in Revenue. The Revenue will grow by 20.01% on average per year.
EPS Next Y20.25%
EPS Next 2Y18.92%
EPS Next 3Y19.33%
EPS Next 5Y19.81%
Revenue Next Year23.95%
Revenue Next 2Y21.61%
Revenue Next 3Y20.67%
Revenue Next 5Y20.01%
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 48.22.
- ZS's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of ZS to the average of the S&P500 Index (27.93), we can say ZS is valued expensively.
- A Price/Forward Earnings ratio of 36.07 indicates a quite expensive valuation of 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 27.77, ZS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.07 |
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 62.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.46 | ||
| EV/EBITDA | 2597.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as ZS's earnings are expected to grow with 19.33% in the coming years.
PEG (NY)2.38
PEG (5Y)0.7
EPS Next 2Y18.92%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
- No dividends for ZS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
167.33
-2.06 (-1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-25 2025-11-25/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners55.76%
Inst Owner Change0.14%
Ins Owners35.42%
Ins Owner Change-0.48%
Market Cap26.68B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.79
Price Target326.91 (95.37%)
Short Float %6.73%
Short Ratio3.52
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)-2.11%
PT rev (3m)-1.44%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)0.42%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.07 | ||
| P/S | 9.42 | ||
| P/FCF | 31.46 | ||
| P/OCF | 24.49 | ||
| P/B | 13.46 | ||
| P/tB | 34.54 | ||
| EV/EBITDA | 2597.89 |
EPS(TTM)3.47
EY2.07%
EPS(NY)4.64
Fwd EY2.77%
FCF(TTM)5.32
FCFY3.18%
OCF(TTM)6.83
OCFY4.08%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)2.38
PEG (5Y)0.7
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 | 4 |
F-Score4
WACC10.73%
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 Y20.25%
EPS Next 2Y18.92%
EPS Next 3Y19.33%
EPS Next 5Y19.81%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
Revenue Next Year23.95%
Revenue Next 2Y21.61%
Revenue Next 3Y20.67%
Revenue Next 5Y20.01%
EBIT growth 1Y-20.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.97%
EBIT Next 3Y33.54%
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.
Can you provide the valuation status for ZSCALER INC?
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 earnings growth outlook for ZSCALER INC?
The Earnings per Share (EPS) of ZSCALER INC (ZS) is expected to grow by 20.25% in the next year.