ZSCALER INC (ZS) Fundamental Analysis & Valuation

NASDAQ:ZS • US98980G1022

Current stock price

141.4 USD
+1.99 (+1.43%)
Last:

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.
  • 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 -1.00%, ZS is in line with its industry, outperforming 55.04% 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 55.76% 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 70.50% 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

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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.
  • ZS has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ZS has been increased compared to 5 years ago.
  • ZS has a worse debt/assets ratio than last year.
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 3.45 indicates that ZS is not in any danger for bankruptcy at the moment.
  • ZS's Altman-Z score of 3.45 is fine compared to the rest of the industry. ZS outperforms 68.70% 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.
  • With a decent Debt to FCF ratio value of 1.95, ZS is doing good in the industry, outperforming 67.27% of the companies in the same industry.
  • A Debt/Equity ratio of 0.78 indicates that ZS is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ZS (0.78) is worse than 70.86% of its industry peers.
  • 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 3.45
ROIC/WACCN/A
WACC10.63%
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 1.90 indicates that ZS should not have too much problems paying 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.
  • Looking at the Quick ratio, with a value of 1.90, ZS is in line with its industry, outperforming 57.19% 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

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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.
  • Looking at the last year, ZS shows a very strong growth in Revenue. The Revenue has grown by 23.91%.
  • 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

  • Based on estimates for the next years, ZS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.16% on average per year.
  • 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.
  • 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

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Find the best growth stocksShow best growing peers

3

4. ZS Valuation Analysis

4.1 Price/Earnings Ratio

  • ZS is valuated quite expensively with a Price/Earnings ratio of 38.22.
  • ZS's Price/Earnings ratio is in line with the industry average.
  • ZS is valuated rather expensively when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 30.11, ZS can be considered very expensive at the moment.
  • ZS's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.67. ZS is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 38.22
Fwd PE 30.11
ZS Price Earnings VS Forward Price EarningsZS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ZS's Enterprise Value to EBITDA is on the same level as the industry average.
  • ZS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZS is cheaper than 64.03% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.02
EV/EBITDA 947.13
ZS Per share dataZS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ZS's 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)1.59
PEG (5Y)0.56
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

  • No dividends for ZS!.
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 (3/25/2026, 11:12:10 AM)

141.4

+1.99 (+1.43%)

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 Cap22.74B
Revenue(TTM)3.00B
Net Income(TTM)-67.63M
Analysts82.11
Price Target307.34 (117.36%)
Short Float %6.88%
Short Ratio2.67
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 38.22
Fwd PE 30.11
P/S 7.58
P/FCF 26.02
P/OCF 20.41
P/B 10.35
P/tB 22.71
EV/EBITDA 947.13
EPS(TTM)3.7
EY2.62%
EPS(NY)4.7
Fwd EY3.32%
FCF(TTM)5.43
FCFY3.84%
OCF(TTM)6.93
OCFY4.9%
SpS18.66
BVpS13.66
TBVpS6.23
PEG (NY)1.59
PEG (5Y)0.56
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 3.45
F-Score3
WACC10.63%
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.


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 24.09% in the next year.