ZSCALER INC (ZS) Fundamental Analysis & Valuation
NASDAQ:ZS • US98980G1022
Current stock price
122.62 USD
+4.57 (+3.87%)
At close:
123.36 USD
+0.74 (+0.6%)
Pre-Market:
This ZS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ZS Profitability Analysis
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.
- Each year in the past 5 years ZS had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -1.00%, ZS perfoms like the industry average, outperforming 54.98% of the companies in the same industry.
- ZS has a Return On Equity of -3.08%. This is comparable to the rest of the industry: ZS outperforms 56.09% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- Looking at the Gross Margin, with a value of 76.56%, ZS is in the better half of the industry, outperforming 69.74% 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 | 76.56% |
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%
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.
- ZS has more shares outstanding than it did 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 3.09 indicates that ZS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.09, ZS is doing good in the industry, outperforming 66.05% 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.
- The Debt to FCF ratio of ZS (1.95) is better than 67.16% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that ZS is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.78, ZS is not doing good in the industry: 70.48% of the companies in the same industry are doing better.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 3.09 |
ROIC/WACCN/A
WACC10.11%
2.3 Liquidity
- ZS has a Current 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.
- The Current ratio of ZS (1.90) is comparable to the rest of the industry.
- A Quick Ratio of 1.90 indicates that ZS should not have too much problems paying its short term obligations.
- ZS's Quick ratio of 1.90 is in line compared to the rest of the industry. ZS outperforms 57.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 |
3. ZS Growth Analysis
3.1 Past
- ZS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.78%, which is quite good.
- 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.
- Looking at the last year, ZS shows a very strong growth in Revenue. The Revenue has grown by 23.91%.
- The Revenue has been growing by 44.03% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, ZS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.16% on average per year.
- ZS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.09% yearly.
EPS Next Y25.85%
EPS Next 2Y20.05%
EPS Next 3Y20.17%
EPS Next 5Y18.16%
Revenue Next Year24.75%
Revenue Next 2Y22.21%
Revenue Next 3Y20.96%
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.
4. ZS Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 33.14, which means the current valuation is very expensive for ZS.
- Compared to the rest of the industry, the Price/Earnings ratio of ZS is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.18. ZS is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 25.94, ZS can be considered very expensive at the moment.
- ZS's Price/Forward Earnings is on the same level as the industry average.
- ZS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 25.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZS is on the same level as its industry peers.
- ZS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZS is cheaper than 66.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.56 | ||
| EV/EBITDA | 807.37 |
4.3 Compensation for Growth
- ZS's 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 20.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)0.48
EPS Next 2Y20.05%
EPS Next 3Y20.17%
5. ZS Dividend Analysis
5.1 Amount
- ZS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ZS Fundamentals: All Metrics, Ratios and Statistics
122.62
+4.57 (+3.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26 2026-02-26/amc
Earnings (Next)05-27 2026-05-27/amc
Inst Owners57.94%
Inst Owner Change0.01%
Ins Owners35.13%
Ins Owner Change-0.36%
Market Cap19.72B
Revenue(TTM)3.00B
Net Income(TTM)-67.63M
Analysts82.41
Price Target237.68 (93.83%)
Short Float %7.86%
Short Ratio2.6
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)8.86%
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)-22.67%
PT rev (3m)-28.83%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)6.66%
EPS NY rev (1m)1.41%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 25.94 | ||
| P/S | 6.57 | ||
| P/FCF | 22.56 | ||
| P/OCF | 17.7 | ||
| P/B | 8.98 | ||
| P/tB | 19.69 | ||
| EV/EBITDA | 807.37 |
EPS(TTM)3.7
EY3.02%
EPS(NY)4.73
Fwd EY3.85%
FCF(TTM)5.43
FCFY4.43%
OCF(TTM)6.93
OCFY5.65%
SpS18.66
BVpS13.66
TBVpS6.23
PEG (NY)1.28
PEG (5Y)0.48
Graham Number33.72
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.09 |
F-Score3
WACC10.11%
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 Y25.85%
EPS Next 2Y20.05%
EPS Next 3Y20.17%
EPS Next 5Y18.16%
Revenue 1Y (TTM)23.91%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.91%
Revenue Next Year24.75%
Revenue Next 2Y22.21%
Revenue Next 3Y20.96%
Revenue Next 5Y20.09%
EBIT growth 1Y-33.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year58.52%
EBIT Next 3Y33.87%
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 4 / 10 to ZSCALER INC (ZS). This can be considered as Fairly Valued.
Can you provide the profitability details for ZSCALER INC?
ZSCALER INC (ZS) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for ZS stock?
The Price/Earnings (PE) ratio for ZSCALER INC (ZS) is 33.14 and the Price/Book (PB) ratio is 8.98.
Can you provide the financial health for ZS stock?
The financial health rating of ZSCALER INC (ZS) is 5 / 10.