ZSCALER INC (0ZC.DE) Stock Fundamental Analysis
FRA:0ZC - Deutsche Boerse Ag - US98980G1022 - Common Stock - Currency: EUR
0ZC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Software industry. While 0ZC seems to be doing ok healthwise, there are quite some concerns on its profitability. 0ZC is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year 0ZC was profitable.
0ZC had a positive operating cash flow in the past year.
In the past 5 years 0ZC always reported negative net income.
0ZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
0ZC has a Return On Assets (-0.31%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -0.97%, 0ZC is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.97% | ||
| ROIC | N/A |
ROA(3y)-6.87%
ROA(5y)-7.7%
ROE(3y)-33.5%
ROE(5y)-34.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Gross Margin value of 77.77%, 0ZC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of 0ZC has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for 0ZC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.14%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
0ZC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for 0ZC has been increased compared to 1 year ago.
0ZC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 0ZC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.69 indicates that 0ZC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.69, 0ZC is in the better half of the industry, outperforming 74.75% of the companies in the same industry.
The Debt to FCF ratio of 0ZC is 1.65, which is an excellent value as it means it would take 0ZC, only 1.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.65, 0ZC is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
0ZC has a Debt/Equity ratio of 0.71. This is a neutral value indicating 0ZC is somewhat dependend on debt financing.
0ZC's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. 0ZC is outperformed by 73.74% of its industry peers.
Even though the debt/equity ratio score it not favorable for 0ZC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 5.69 |
ROIC/WACCN/A
WACC13.69%
2.3 Liquidity
0ZC has a Current Ratio of 1.20. This is a normal value and indicates that 0ZC is financially healthy and should not expect problems in meeting its short term obligations.
0ZC has a Current ratio of 1.20. This is comparable to the rest of the industry: 0ZC outperforms 47.47% of its industry peers.
A Quick Ratio of 1.20 indicates that 0ZC should not have too much problems paying its short term obligations.
0ZC has a Quick ratio of 1.20. This is comparable to the rest of the industry: 0ZC outperforms 50.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
0ZC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.80%, which is quite impressive.
The Earnings Per Share has been growing by 70.72% on average over the past years. This is a very strong growth
The Revenue has grown by 27.77% in the past year. This is a very strong growth!
Measured over the past years, 0ZC shows a very strong growth in Revenue. The Revenue has been growing by 48.24% on average per year.
EPS 1Y (TTM)29.8%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%2.63%
Revenue 1Y (TTM)27.77%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%23.41%
3.2 Future
0ZC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.16% yearly.
The Revenue is expected to grow by 21.88% on average over the next years. This is a very strong growth
EPS Next Y-3.24%
EPS Next 2Y7.51%
EPS Next 3Y12.02%
EPS Next 5Y19.16%
Revenue Next Year23.2%
Revenue Next 2Y21.89%
Revenue Next 3Y21.63%
Revenue Next 5Y21.88%
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
0ZC is valuated quite expensively with a Price/Earnings ratio of 60.79.
0ZC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 0ZC is valued quite expensively.
The Price/Forward Earnings ratio is 54.59, which means the current valuation is very expensive for 0ZC.
The rest of the industry has a similar Price/Forward Earnings ratio as 0ZC.
0ZC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.79 | ||
| Fwd PE | 54.59 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, 0ZC is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as 0ZC's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y7.51%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
0ZC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:0ZC (3/7/2025, 7:00:00 PM)
185.4
-8.94 (-4.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.13%
Inst Owner ChangeN/A
Ins Owners37.29%
Ins Owner ChangeN/A
Market Cap28.45B
Analysts78.87
Price Target221.63 (19.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)13.76%
Min EPS beat(2)9.41%
Max EPS beat(2)18.11%
EPS beat(4)4
Avg EPS beat(4)20.21%
Min EPS beat(4)9.41%
Max EPS beat(4)30.36%
EPS beat(8)8
Avg EPS beat(8)22.22%
EPS beat(12)12
Avg EPS beat(12)23.55%
EPS beat(16)16
Avg EPS beat(16)29.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)0.57%
Revenue beat(4)3
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)1.35%
Revenue beat(8)6
Avg Revenue beat(8)0.5%
Revenue beat(12)10
Avg Revenue beat(12)0.93%
Revenue beat(16)14
Avg Revenue beat(16)1.77%
PT rev (1m)-1.75%
PT rev (3m)2.98%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.79 | ||
| Fwd PE | 54.59 | ||
| P/S | 12.75 | ||
| P/FCF | 44.46 | ||
| P/OCF | 34.79 | ||
| P/B | 19.22 | ||
| P/tB | 27.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.05
EY1.65%
EPS(NY)3.4
Fwd EY1.83%
FCF(TTM)4.17
FCFY2.25%
OCF(TTM)5.33
OCFY2.87%
SpS14.54
BVpS9.65
TBVpS6.81
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.31% | ||
| ROE | -0.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.77% | ||
| FCFM | 28.69% |
ROA(3y)-6.87%
ROA(5y)-7.7%
ROE(3y)-33.5%
ROE(5y)-34.76%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y0.14%
GM growth 5Y-0.59%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 193.28% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 5.69 |
F-Score6
WACC13.69%
ROIC/WACCN/A
Cap/Depr(3y)205.41%
Cap/Depr(5y)204.29%
Cap/Sales(3y)8.42%
Cap/Sales(5y)9.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.8%
EPS 3Y81.9%
EPS 5Y70.72%
EPS Q2Q%2.63%
EPS Next Y-3.24%
EPS Next 2Y7.51%
EPS Next 3Y12.02%
EPS Next 5Y19.16%
Revenue 1Y (TTM)27.77%
Revenue growth 3Y47.68%
Revenue growth 5Y48.24%
Sales Q2Q%23.41%
Revenue Next Year23.2%
Revenue Next 2Y21.89%
Revenue Next 3Y21.63%
Revenue Next 5Y21.88%
EBIT growth 1Y45.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.61%
EBIT Next 3Y36.14%
EBIT Next 5YN/A
FCF growth 1Y150.86%
FCF growth 3Y59.67%
FCF growth 5Y83.91%
OCF growth 1Y122.87%
OCF growth 3Y56.87%
OCF growth 5Y68.16%