ZSCALER INC (ZS) Stock Fundamental Analysis

NASDAQ:ZS • US98980G1022

176.78 USD
+5.88 (+3.44%)
Last: Feb 13, 2026, 03:48 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

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 shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year ZS was profitable.
  • ZS had a positive operating cash flow in the past year.
  • In the past 5 years ZS always reported negative net income.
  • 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

  • Looking at the Return On Assets, with a value of -0.63%, ZS is in line with its industry, outperforming 54.15% of the companies in the same industry.
  • ZS has a Return On Equity (-2.07%) which is in line with its industry peers.
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

  • ZS has a better Gross Margin (76.65%) than 70.76% of its industry peers.
  • 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 76.65%
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.
  • The number of shares outstanding for ZS has been increased compared to 1 year ago.
  • The number of shares outstanding for ZS has been increased compared to 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 4.08. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ZS (4.08) is better than 74.37% of its industry peers.
  • 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.
  • ZS has a better Debt to FCF ratio (2.00) than 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.
  • Looking at the Debt to Equity ratio, with a value of 0.86, ZS is doing worse than 73.65% of the companies in the same industry.
  • Although ZS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 0.86
Debt/FCF 2
Altman-Z 4.08
ROIC/WACCN/A
WACC10.82%
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 53.79% of the companies in the same 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.
  • With a Quick ratio value of 1.82, ZS perfoms like the industry average, outperforming 54.15% of the companies in the same industry.
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

8

3. Growth

3.1 Past

  • ZS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.47%.
  • 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 23.24%.
  • 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

  • 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.
  • Based on estimates for the next years, ZS will show a very strong growth in Revenue. The Revenue will grow by 20.01% on average per year.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
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

  • ZS is valuated quite expensively with a Price/Earnings ratio of 50.95.
  • ZS's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.67. ZS is valued rather expensively when compared to this.
  • ZS is valuated quite expensively with a Price/Forward Earnings ratio of 38.11.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZS is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of ZS to the average of the S&P500 Index (27.69), we can say ZS is valued slightly more expensively.
Industry RankSector Rank
PE 50.95
Fwd PE 38.11
ZS Price Earnings VS Forward Price EarningsZS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZS.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZS indicates a somewhat cheap valuation: ZS is cheaper than 61.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 33.24
EV/EBITDA 2661.97
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)2.52
PEG (5Y)0.74
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

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

More info and screens

Find the best dividend stocksShow peers with best dividend

ZSCALER INC

NASDAQ:ZS (2/13/2026, 3:48:05 PM)

176.78

+5.88 (+3.44%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-25
Earnings (Next)02-26
Inst Owners55.76%
Inst Owner Change0.14%
Ins Owners35.42%
Ins Owner Change-0.48%
Market Cap28.19B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.79
Price Target326.91 (84.92%)
Short Float %6.73%
Short Ratio3.52
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)-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 RankSector Rank
PE 50.95
Fwd PE 38.11
P/S 9.95
P/FCF 33.24
P/OCF 25.88
P/B 14.22
P/tB 36.49
EV/EBITDA 2661.97
EPS(TTM)3.47
EY1.96%
EPS(NY)4.64
Fwd EY2.62%
FCF(TTM)5.32
FCFY3.01%
OCF(TTM)6.83
OCFY3.86%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)2.52
PEG (5Y)0.74
Graham Number31.15
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 4.08
F-Score4
WACC10.82%
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.