ZSCALER INC (ZS) Fundamental Analysis & Valuation

NASDAQ:ZS • US98980G1022

Current stock price

130.68 USD
-4.05 (-3.01%)
At close:
131.237 USD
+0.56 (+0.43%)
After Hours:

This ZS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. ZS Profitability Analysis

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.
  • Each year in the past 5 years ZS had a positive operating cash flow.
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

  • With a Return On Assets value of -1.00%, ZS perfoms like the industry average, outperforming 53.31% 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 55.51% of its industry peers.
Industry RankSector 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
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's Gross Margin of 76.56% is fine compared to the rest of the industry. ZS outperforms 71.32% of its industry peers.
  • In the last couple of years the Gross Margin of ZS has remained more or less at the same level.
  • 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 76.56%
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%
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. ZS Health Analysis

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.
  • Compared to 5 years ago, ZS has more shares outstanding
  • 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

  • An Altman-Z score of 3.35 indicates that ZS is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ZS (3.35) is better than 67.65% of its industry peers.
  • The Debt to FCF ratio of ZS is 1.95, which is an excellent value as it means it would take ZS, only 1.95 years of fcf income to pay off all of its debts.
  • ZS has a better Debt to FCF ratio (1.95) than 66.18% of its industry peers.
  • ZS has a Debt/Equity ratio of 0.78. This is a neutral value indicating ZS is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.78, ZS is doing worse than 74.26% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.78
Debt/FCF 1.95
Altman-Z 3.35
ROIC/WACCN/A
WACC10.58%
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

  • 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.
  • ZS has a Current ratio of 1.90. This is comparable to the rest of the industry: ZS outperforms 55.51% of its industry peers.
  • A Quick Ratio of 1.90 indicates that ZS should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.90, ZS is in line with its industry, outperforming 56.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
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. ZS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.78% over the past year.
  • ZS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
  • The Revenue has grown by 23.91% 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)23.91%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.91%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.16% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 19.96% on average over the next years. This is quite good.
EPS Next Y25.85%
EPS Next 2Y20.05%
EPS Next 3Y20.17%
EPS Next 5Y18.16%
Revenue Next Year24.75%
Revenue Next 2Y22.18%
Revenue Next 3Y20.91%
Revenue Next 5Y19.96%

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

3

4. ZS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 35.32, which means the current valuation is very expensive for ZS.
  • ZS's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.54, ZS is valued a bit more expensive.
  • Based on the Price/Forward Earnings ratio of 27.65, the valuation of ZS can be described as expensive.
  • ZS's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, ZS is valued a bit more expensive.
Industry RankSector Rank
PE 35.32
Fwd PE 27.65
ZS Price Earnings VS Forward Price EarningsZS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • 65.07% of the companies in the same industry are more expensive than ZS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.05
EV/EBITDA 908.17
ZS Per share dataZS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The 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)1.37
PEG (5Y)0.51
EPS Next 2Y20.05%
EPS Next 3Y20.17%

More info and screens

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

0

5. ZS Dividend Analysis

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

ZS Fundamentals: All Metrics, Ratios and Statistics

ZSCALER INC

NASDAQ:ZS (4/30/2026, 4:44:33 PM)

After market: 131.237 +0.56 (+0.43%)

130.68

-4.05 (-3.01%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.83
Industry Growth87.58
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners57.94%
Inst Owner Change0.57%
Ins Owners35.13%
Ins Owner Change-1.22%
Market Cap21.01B
Revenue(TTM)3.00B
Net Income(TTM)-67.63M
Analysts82.41
Price Target236.3 (80.82%)
Short Float %10.08%
Short Ratio3.33
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)8.86%
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)-23.12%
PT rev (3m)-28.45%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)6.66%
EPS NY rev (1m)1.41%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 35.32
Fwd PE 27.65
P/S 7
P/FCF 24.05
P/OCF 18.86
P/B 9.57
P/tB 20.99
EV/EBITDA 908.17
EPS(TTM)3.7
EY2.83%
EPS(NY)4.73
Fwd EY3.62%
FCF(TTM)5.43
FCFY4.16%
OCF(TTM)6.93
OCFY5.3%
SpS18.66
BVpS13.66
TBVpS6.23
PEG (NY)1.37
PEG (5Y)0.51
Graham Number33.7189 (-74.2%)
Profitability
Industry RankSector 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 RankSector 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 3.35
F-Score3
WACC10.58%
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 2Y22.18%
Revenue Next 3Y20.91%
Revenue Next 5Y19.96%
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 4 / 10 to ZS.


Can you provide the valuation status for ZSCALER INC?

ChartMill assigns a valuation rating of 3 / 10 to ZSCALER INC (ZS). This can be considered as Overvalued.


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 35.32 and the Price/Book (PB) ratio is 9.57.


Can you provide the financial health for ZS stock?

The financial health rating of ZSCALER INC (ZS) is 5 / 10.