ZSCALER INC (ZS) Fundamental Analysis & Valuation

NASDAQ:ZS • US98980G1022

Current stock price

151.47 USD
-3.93 (-2.53%)
At close:
152 USD
+0.53 (+0.35%)
After Hours:

This ZS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. ZS Profitability Analysis

1.1 Basic Checks

  • ZS had positive earnings in the past year.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M

1.2 Ratios

  • ZS's Return On Assets of -1.00% is in line compared to the rest of the industry. ZS outperforms 54.51% of its industry peers.
  • ZS has a Return On Equity of -3.08%. This is comparable to the rest of the industry: ZS outperforms 55.23% of its industry peers.
Industry RankSector Rank
ROA -1%
ROE -3.08%
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
ZS Yearly ROA, ROE, ROICZS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -20 -40 -60 -80

1.3 Margins

  • With a decent Gross Margin value of 76.56%, ZS is doing good in the industry, outperforming 70.04% of the companies in the same industry.
  • ZS's Gross Margin has been stable in the last couple of years.
  • 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 76.56%
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%
ZS Yearly Profit, Operating, Gross MarginsZS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. ZS Health Analysis

2.1 Basic Checks

  • ZS does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, ZS has more shares outstanding
  • ZS has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for ZS is higher compared to a year ago.
ZS Yearly Shares OutstandingZS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
ZS Yearly Total Debt VS Total AssetsZS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • ZS has an Altman-Z score of 3.79. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.79, ZS is doing good in the industry, outperforming 71.48% of the companies in the same industry.
  • ZS has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 1.95, ZS is doing good in the industry, outperforming 67.51% of the companies in the same industry.
  • ZS has a Debt/Equity ratio of 0.78. This is a neutral value indicating ZS is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.78, ZS is doing worse than 71.48% of the companies in the same industry.
  • Although ZS's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.78
Debt/FCF 1.95
Altman-Z 3.79
ROIC/WACCN/A
WACC10.6%
ZS Yearly LT Debt VS Equity VS FCFZS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.90 indicates that ZS should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.90, ZS perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
  • ZS has a Quick Ratio of 1.90. This is a normal value and indicates that ZS is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.90, ZS perfoms like the industry average, outperforming 57.04% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
ZS Yearly Current Assets VS Current LiabilitesZS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. ZS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.78% over the past year.
  • The Earnings Per Share has been growing by 68.71% on average over the past years. This is a very strong growth
  • ZS shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.91%.
  • 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)11.78%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%29.49%
Revenue 1Y (TTM)23.91%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.91%

3.2 Future

  • ZS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.16% yearly.
  • ZS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.09% yearly.
EPS Next Y24.09%
EPS Next 2Y19.66%
EPS Next 3Y20.03%
EPS Next 5Y18.16%
Revenue Next Year24.53%
Revenue Next 2Y22.08%
Revenue Next 3Y20.84%
Revenue Next 5Y20.09%

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 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
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 2033 0 5 10 15

More info and screens

Find the best growth stocksShow best growing peers

3

4. ZS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 40.94, ZS can be considered very expensive at the moment.
  • ZS's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of ZS to the average of the S&P500 Index (25.23), we can say ZS is valued expensively.
  • ZS is valuated quite expensively with a Price/Forward Earnings ratio of 32.25.
  • ZS's Price/Forward Earnings ratio is in line with the industry average.
  • ZS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 40.94
Fwd PE 32.25
ZS Price Earnings VS Forward Price EarningsZS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ZS's Enterprise Value to EBITDA is on the same level as the industry average.
  • 62.45% of the companies in the same industry are more expensive than ZS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 27.87
EV/EBITDA 1080.23
ZS Per share dataZS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ZS's earnings are expected to grow with 20.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)0.6
EPS Next 2Y19.66%
EPS Next 3Y20.03%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ZS Dividend Analysis

5.1 Amount

  • No dividends for ZS!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ZS Fundamentals: All Metrics, Ratios and Statistics

ZSCALER INC

NASDAQ:ZS (3/20/2026, 8:00:03 PM)

After market: 152 +0.53 (+0.35%)

151.47

-3.93 (-2.53%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners57.65%
Inst Owner Change-40.11%
Ins Owners35.14%
Ins Owner Change-1.57%
Market Cap24.35B
Revenue(TTM)3.00B
Net Income(TTM)-67.63M
Analysts82.11
Price Target307.34 (102.9%)
Short Float %6.88%
Short Ratio2.67
Dividend
Industry RankSector 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)8.86%
Min EPS beat(2)8.4%
Max EPS beat(2)9.33%
EPS beat(4)4
Avg EPS beat(4)8.59%
Min EPS beat(4)8.25%
Max EPS beat(4)9.33%
EPS beat(8)8
Avg EPS beat(8)14.4%
EPS beat(12)12
Avg EPS beat(12)17.68%
EPS beat(16)16
Avg EPS beat(16)19.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)-0.85%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)10
Avg Revenue beat(16)0.42%
PT rev (1m)-5.99%
PT rev (3m)-8.15%
EPS NQ rev (1m)6.14%
EPS NQ rev (3m)6.05%
EPS NY rev (1m)3.2%
EPS NY rev (3m)3.89%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.53%
Valuation
Industry RankSector Rank
PE 40.94
Fwd PE 32.25
P/S 8.12
P/FCF 27.87
P/OCF 21.86
P/B 11.09
P/tB 24.33
EV/EBITDA 1080.23
EPS(TTM)3.7
EY2.44%
EPS(NY)4.7
Fwd EY3.1%
FCF(TTM)5.43
FCFY3.59%
OCF(TTM)6.93
OCFY4.57%
SpS18.66
BVpS13.66
TBVpS6.23
PEG (NY)1.7
PEG (5Y)0.6
Graham Number33.72
Profitability
Industry RankSector Rank
ROA -1%
ROE -3.08%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 76.56%
FCFM 29.12%
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-Score3
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 1.95
Debt/EBITDA 88.15
Cap/Depr 155.86%
Cap/Sales 8%
Interest Coverage N/A
Cash Conversion 5767.14%
Profit Quality N/A
Current Ratio 1.9
Quick Ratio 1.9
Altman-Z 3.79
F-Score3
WACC10.6%
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)11.78%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%29.49%
EPS Next Y24.09%
EPS Next 2Y19.66%
EPS Next 3Y20.03%
EPS Next 5Y18.16%
Revenue 1Y (TTM)23.91%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.91%
Revenue Next Year24.53%
Revenue Next 2Y22.08%
Revenue Next 3Y20.84%
Revenue Next 5Y20.09%
EBIT growth 1Y-33.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57.96%
EBIT Next 3Y33.61%
EBIT Next 5Y27.39%
FCF growth 1Y74.52%
FCF growth 3Y46.46%
FCF growth 5Y92.49%
OCF growth 1Y72.11%
OCF growth 3Y44.56%
OCF growth 5Y65.09%

ZSCALER INC / ZS Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ZSCALER INC?

ChartMill assigns a fundamental rating of 5 / 10 to ZS.


Can you provide the valuation status for ZSCALER INC?

ChartMill assigns a valuation rating of 3 / 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 24.09% in the next year.