174.34 USD
+4.16 (+2.44%)
At close: Feb 10, 2026
177 USD
+2.66 (+1.53%)
After Hours: 2/10/2026, 8:00:02 PM
Overall ZS gets a fundamental rating of 4 out of 10. We evaluated ZS against 277 industry peers in the Software industry. The financial health of ZS is average, but there are quite some concerns on its profitability. ZS is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year ZS was profitable.
- ZS had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- ZS has a Return On Assets of -0.63%. This is comparable to the rest of the industry: ZS outperforms 54.15% of its industry peers.
- ZS has a Return On Equity of -2.07%. This is comparable to the rest of the industry: ZS outperforms 56.32% of its industry peers.
| 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's Gross Margin of 76.65% is fine compared to the rest of the industry. ZS outperforms 70.76% 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.
- ZS has more shares outstanding than it did 1 year ago.
- ZS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ZS has a worse debt to assets ratio.
2.2 Solvency
- ZS has an Altman-Z score of 4.15. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.15, ZS is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
- ZS has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as ZS would need 2.00 years to pay back of all of its debts.
- ZS's Debt to FCF ratio of 2.00 is fine compared to the rest of the industry. ZS outperforms 67.15% of its industry peers.
- ZS has a Debt/Equity ratio of 0.86. This is a neutral value indicating ZS is somewhat dependend on debt financing.
- The Debt to Equity ratio of ZS (0.86) is worse than 73.29% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 4.15 |
ROIC/WACCN/A
WACC10.89%
2.3 Liquidity
- A Current Ratio of 1.82 indicates that ZS should not have too much problems paying its short term obligations.
- ZS has a Current ratio (1.82) which is comparable to the rest of the industry.
- ZS has a Quick Ratio of 1.82. This is a normal value and indicates that ZS is financially healthy and should not expect problems in meeting its short term obligations.
- ZS has a Quick ratio (1.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.47% 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
- Looking at the last year, ZS shows a very strong growth in Revenue. The Revenue has grown by 23.24%.
- The Revenue has been growing by 44.03% on average over the past years. This is a very strong growth!
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.
- 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 2Y21.61%
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
- With a Price/Earnings ratio of 50.24, ZS can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as ZS.
- Compared to an average S&P500 Price/Earnings ratio of 28.03, ZS is valued quite expensively.
- ZS is valuated quite expensively with a Price/Forward Earnings ratio of 37.58.
- The rest of the industry has a similar Price/Forward Earnings ratio as ZS.
- The average S&P500 Price/Forward Earnings ratio is at 27.97. ZS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.24 | ||
| Fwd PE | 37.58 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZS.
- 62.45% of the companies in the same industry are more expensive than ZS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.78 | ||
| EV/EBITDA | 2723.72 |
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)2.48
PEG (5Y)0.73
EPS Next 2Y18.92%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
- ZS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
174.34
+4.16 (+2.44%)
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 Cap27.80B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.79
Price Target326.91 (87.51%)
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 | 50.24 | ||
| Fwd PE | 37.58 | ||
| P/S | 9.81 | ||
| P/FCF | 32.78 | ||
| P/OCF | 25.52 | ||
| P/B | 14.02 | ||
| P/tB | 35.99 | ||
| EV/EBITDA | 2723.72 |
EPS(TTM)3.47
EY1.99%
EPS(NY)4.64
Fwd EY2.66%
FCF(TTM)5.32
FCFY3.05%
OCF(TTM)6.83
OCFY3.92%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)2.48
PEG (5Y)0.73
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 | 4.15 |
F-Score4
WACC10.89%
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.