170.18 USD
+2.85 (+1.7%)
At close: Feb 9, 2026
170.51 USD
+0.33 (+0.19%)
After Hours: 2/9/2026, 4:16:01 PM
We assign a fundamental rating of 4 out of 10 to ZS. ZS was compared to 277 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.
1. Profitability
1.1 Basic Checks
- In the past year ZS was profitable.
- In the past year ZS had a positive cash flow from operations.
- In the past 5 years ZS always reported negative net income.
- Each year in the past 5 years ZS had a positive operating cash flow.
1.2 Ratios
- ZS has a Return On Assets (-0.63%) which is in line with its industry peers.
- ZS has a Return On Equity (-2.07%) which is in line with 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
- The Gross Margin of ZS (76.65%) is better than 71.12% 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 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.
- 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.
2.2 Solvency
- An Altman-Z score of 4.00 indicates that ZS is not in any danger for bankruptcy at the moment.
- ZS's Altman-Z score of 4.00 is fine compared to the rest of the industry. ZS outperforms 71.48% of its industry peers.
- 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.
- A Debt/Equity ratio of 0.86 indicates that 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.
- 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 |
ROIC/WACCN/A
WACC10.9%
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 in line with its industry peers.
- 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
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
- The Revenue has grown by 23.24% in the past year. This is a very strong growth!
- 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
- ZS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.81% yearly.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 49.04, the valuation of ZS can be described as expensive.
- ZS's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.93. ZS is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 36.69, ZS can be considered very expensive at the moment.
- ZS's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of ZS to the average of the S&P500 Index (27.77), we can say ZS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.04 | ||
| Fwd PE | 36.69 |
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 63.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32 | ||
| EV/EBITDA | 2597.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ZS does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as ZS's earnings are expected to grow with 19.33% in the coming years.
PEG (NY)2.42
PEG (5Y)0.71
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% |
170.18
+2.85 (+1.7%)
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 Cap27.14B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.79
Price Target326.91 (92.1%)
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 | 49.04 | ||
| Fwd PE | 36.69 | ||
| P/S | 9.58 | ||
| P/FCF | 32 | ||
| P/OCF | 24.91 | ||
| P/B | 13.69 | ||
| P/tB | 35.13 | ||
| EV/EBITDA | 2597.89 |
EPS(TTM)3.47
EY2.04%
EPS(NY)4.64
Fwd EY2.73%
FCF(TTM)5.32
FCFY3.13%
OCF(TTM)6.83
OCFY4.01%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)2.42
PEG (5Y)0.71
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 |
F-Score4
WACC10.9%
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.