213.98 USD
+3.4 (+1.61%)
214.208 USD
+0.23 (+0.11%)
Taking everything into account, ZS scores 4 out of 10 in our fundamental rating. ZS was compared to 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.
1. Profitability
1.1 Basic Checks
- ZS had positive earnings in the past year.
- In the past year ZS had a positive cash flow from operations.
- ZS had negative earnings in each of the past 5 years.
- In the past 5 years ZS always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of -0.63%, ZS perfoms like the industry average, outperforming 54.15% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -2.07%, ZS is in line with its industry, outperforming 56.32% of the companies in the same industry.
| 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 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.
- 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
- ZS has a worse debt/assets ratio than last year.
2.2 Solvency
- ZS has an Altman-Z score of 4.99. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
- ZS's Altman-Z score of 4.99 is fine compared to the rest of the industry. ZS outperforms 72.92% 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 has a better Debt to FCF ratio (2.00) than 67.87% 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.
- ZS has a worse Debt to Equity ratio (0.86) 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 | 4.99 |
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 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.
- Looking at the Quick ratio, with a value of 1.82, ZS is in line with its industry, outperforming 54.87% of the companies in the same industry.
| 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%.
- ZS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 44.03% yearly.
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.
- The Revenue is expected to grow by 20.01% on average over the next years. This is a very strong growth
EPS Next Y19.74%
EPS Next 2Y18.63%
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
- The Price/Earnings ratio is 61.67, which means the current valuation is very expensive for ZS.
- Compared to the rest of the industry, the Price/Earnings ratio of ZS is on the same level as its industry peers.
- ZS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 46.36 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. ZS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.67 | ||
| Fwd PE | 46.36 |
4.2 Price Multiples
- ZS's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, ZS is valued a bit cheaper than 62.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.23 | ||
| EV/EBITDA | 3435.27 |
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)3.12
PEG (5Y)0.9
EPS Next 2Y18.63%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
- No dividends for ZS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
213.98
+3.4 (+1.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-25 2025-11-25/amc
Earnings (Next)03-03 2026-03-03/amc
Inst Owners55.76%
Inst Owner Change0.01%
Ins Owners35.42%
Ins Owner Change-0.48%
Market Cap34.12B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.79
Price Target330.26 (54.34%)
Short Float %6.21%
Short Ratio3.66
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)-1.3%
PT rev (3m)-0.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.67 | ||
| Fwd PE | 46.36 | ||
| P/S | 12.04 | ||
| P/FCF | 40.23 | ||
| P/OCF | 31.32 | ||
| P/B | 17.21 | ||
| P/tB | 44.17 | ||
| EV/EBITDA | 3435.27 |
EPS(TTM)3.47
EY1.62%
EPS(NY)4.62
Fwd EY2.16%
FCF(TTM)5.32
FCFY2.49%
OCF(TTM)6.83
OCFY3.19%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)3.12
PEG (5Y)0.9
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 | 4.99 |
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 Y19.74%
EPS Next 2Y18.63%
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 19.74% in the next year.