ZSCALER INC (ZS) Stock Fundamental Analysis

NASDAQ:ZS • US98980G1022

146.99 USD
-20.37 (-12.17%)
At close: Feb 27, 2026
146.25 USD
-0.74 (-0.5%)
After Hours: 2/27/2026, 9:40:08 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ZS. ZS was compared to 276 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.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • ZS had positive earnings in the past year.
  • In the past year ZS had a positive cash flow from operations.
  • ZS had negative earnings in each of the past 5 years.
  • ZS had a positive operating cash flow in each of the past 5 years.
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 -0.63% is in line compared to the rest of the industry. ZS outperforms 55.07% of its industry peers.
  • Looking at the Return On Equity, with a value of -2.07%, ZS is in line with its industry, outperforming 56.88% of the companies in the same industry.
Industry RankSector 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
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

  • The Gross Margin of ZS (76.65%) is better than 69.57% 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 RankSector 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%
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. 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.
  • 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.
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

  • An Altman-Z score of 3.57 indicates that ZS is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.57, ZS is in the better half of the industry, outperforming 70.29% 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.
  • Looking at the Debt to FCF ratio, with a value of 2.00, ZS is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
  • A Debt/Equity ratio of 0.86 indicates that ZS is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.86, ZS is not doing good in the industry: 72.83% of the companies in the same industry are doing better.
  • 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 RankSector Rank
Debt/Equity 0.86
Debt/FCF 2
Altman-Z 3.57
ROIC/WACCN/A
WACC10.59%
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 1.82 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 53.62% 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's Quick ratio of 1.82 is in line compared to the rest of the industry. ZS outperforms 54.35% of its industry peers.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.82
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. Growth

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.
  • The Revenue has grown by 23.31% 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)11.78%
EPS 3Y68.14%
EPS 5Y68.71%
EPS Q2Q%29.49%
Revenue 1Y (TTM)23.31%
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 19.81% on average per year.
  • ZS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.01% yearly.
EPS Next Y20.25%
EPS Next 2Y18.92%
EPS Next 3Y19.33%
EPS Next 5Y19.81%
Revenue Next Year23.95%
Revenue Next 2Y21.6%
Revenue Next 3Y20.68%
Revenue Next 5Y20.01%

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

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.73, the valuation of ZS can be described as expensive.
  • 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 (27.07), we can say ZS is valued slightly more expensively.
  • ZS is valuated quite expensively with a Price/Forward Earnings ratio of 31.69.
  • ZS's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of ZS to the average of the S&P500 Index (28.05), we can say ZS is valued inline with the index average.
Industry RankSector Rank
PE 39.73
Fwd PE 31.69
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.
  • ZS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZS is cheaper than 62.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.64
EV/EBITDA 2232.78
ZS Per share dataZS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ZS's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)0.58
EPS Next 2Y18.92%
EPS Next 3Y19.33%

More info and screens

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

0

5. Dividend

5.1 Amount

  • ZS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ZSCALER INC

NASDAQ:ZS (2/27/2026, 9:40:08 PM)

After market: 146.25 -0.74 (-0.5%)

146.99

-20.37 (-12.17%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners55.76%
Inst Owner Change-40.13%
Ins Owners35.42%
Ins Owner Change-0.48%
Market Cap23.44B
Revenue(TTM)2.67B
Net Income(TTM)-41.04M
Analysts81.75
Price Target307.34 (109.09%)
Short Float %7.46%
Short Ratio4.04
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)8.32%
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)-6.94%
PT rev (3m)-8.14%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0.42%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
Industry RankSector Rank
PE 39.73
Fwd PE 31.69
P/S 8.27
P/FCF 27.64
P/OCF 21.52
P/B 11.82
P/tB 30.34
EV/EBITDA 2232.78
EPS(TTM)3.7
EY2.52%
EPS(NY)4.64
Fwd EY3.16%
FCF(TTM)5.32
FCFY3.62%
OCF(TTM)6.83
OCFY4.65%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)1.96
PEG (5Y)0.58
Graham Number32.17
Profitability
Industry RankSector 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 RankSector 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 3.57
F-Score4
WACC10.59%
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 Y20.25%
EPS Next 2Y18.92%
EPS Next 3Y19.33%
EPS Next 5Y19.81%
Revenue 1Y (TTM)23.31%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.91%
Revenue Next Year23.95%
Revenue Next 2Y21.6%
Revenue Next 3Y20.68%
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 5Y27.39%
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 5 / 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.