ZSCALER INC (ZS) Fundamental Analysis & Valuation

NASDAQ:ZS • US98980G1022

Current stock price

138.56 USD
+1.89 (+1.38%)
At close:
138.56 USD
0 (0%)
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.
  • 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.
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 54.18% of the companies in the same industry.
  • ZS has a Return On Equity (-3.08%) which is in line with 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 70.55% 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.
  • ZS has more shares outstanding than it did 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 3.43. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
  • ZS has a Altman-Z score of 3.43. This is in the better half of the industry: ZS outperforms 69.09% of its industry peers.
  • ZS has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
  • ZS has a better Debt to FCF ratio (1.95) than 66.91% 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.
  • With a Debt to Equity ratio value of 0.78, ZS is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
  • 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 3.43
ROIC/WACCN/A
WACC10.66%
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.
  • The Current ratio of ZS (1.90) is comparable to the rest of the industry.
  • A Quick Ratio of 1.90 indicates that ZS should not have too much problems paying its short term obligations.
  • ZS has a Quick ratio of 1.90. This is comparable to the rest of the industry: ZS outperforms 57.09% of its industry peers.
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

9

3. ZS Growth Analysis

3.1 Past

  • ZS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.78%, which is quite good.
  • Measured over the past years, ZS shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.71% on average per year.
  • The Revenue has grown by 23.91% in the past year. This is a very strong growth!
  • Measured over the past years, ZS shows a very strong growth in Revenue. The Revenue has been growing by 44.03% on average per year.
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

  • ZS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.16% yearly.
  • The Revenue is expected to grow by 20.09% on average over the next years. This is a very strong growth
EPS Next Y24.09%
EPS Next 2Y19.66%
EPS Next 3Y20.03%
EPS Next 5Y18.16%
Revenue Next Year24.75%
Revenue Next 2Y22.21%
Revenue Next 3Y20.96%
Revenue Next 5Y20.09%

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.
  • 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

  • With a Price/Earnings ratio of 37.45, ZS can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of ZS is on the same level as its industry peers.
  • ZS is valuated rather expensively when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 29.50 indicates a quite expensive valuation of ZS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ZS is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, ZS is valued a bit more expensive.
Industry RankSector Rank
PE 37.45
Fwd PE 29.5
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.
  • ZS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZS is cheaper than 65.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.5
EV/EBITDA 940.05
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 20.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)0.55
EPS Next 2Y19.66%
EPS Next 3Y20.03%

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 (4/2/2026, 8:02:34 PM)

After market: 138.56 0 (0%)

138.56

+1.89 (+1.38%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners57.65%
Inst Owner Change-40.12%
Ins Owners35.14%
Ins Owner Change-0.6%
Market Cap22.28B
Revenue(TTM)3.00B
Net Income(TTM)-67.63M
Analysts82.11
Price Target238.81 (72.35%)
Short Float %7.52%
Short Ratio2.68
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)-5.99%
PT rev (3m)-7.97%
EPS NQ rev (1m)6.55%
EPS NQ rev (3m)6.55%
EPS NY rev (1m)3.2%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 37.45
Fwd PE 29.5
P/S 7.42
P/FCF 25.5
P/OCF 20
P/B 10.15
P/tB 22.25
EV/EBITDA 940.05
EPS(TTM)3.7
EY2.67%
EPS(NY)4.7
Fwd EY3.39%
FCF(TTM)5.43
FCFY3.92%
OCF(TTM)6.93
OCFY5%
SpS18.66
BVpS13.66
TBVpS6.23
PEG (NY)1.55
PEG (5Y)0.55
Graham Number33.72
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 3.43
F-Score3
WACC10.66%
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 Y24.09%
EPS Next 2Y19.66%
EPS Next 3Y20.03%
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 2Y22.21%
Revenue Next 3Y20.96%
Revenue Next 5Y20.09%
EBIT growth 1Y-33.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57.96%
EBIT Next 3Y33.61%
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 5 / 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 37.45 and the Price/Book (PB) ratio is 10.15.


Can you provide the financial health for ZS stock?

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