241.85 USD
-1.81 (-0.74%)
241.85 USD
0 (0%)
Overall ZS gets a fundamental rating of 4 out of 10. We evaluated ZS against 281 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
ZS had positive earnings in the past year.
In the past year ZS had a positive cash flow from operations.
In the past 5 years ZS always reported negative net income.
In the past 5 years ZS always reported a positive cash flow from operatings.
1.2 Ratios
ZS has a Return On Assets (-0.63%) which is comparable to the rest of the industry.
ZS has a Return On Equity (-2.07%) which is comparable to the rest of the 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
Looking at the Gross Margin, with a value of 76.65%, ZS is in the better half of the industry, outperforming 71.53% of the companies in the same industry.
In the last couple of years the Gross Margin of ZS has remained more or less at the same level.
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.
ZS has more shares outstanding than it did 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
ZS has an Altman-Z score of 5.58. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.58, ZS is doing good in the industry, outperforming 74.38% of the companies in the same industry.
The Debt to FCF ratio of ZS is 2.00, which is a good value as it means it would take ZS, 2.00 years of fcf income to pay off all of its debts.
ZS's Debt to FCF ratio of 2.00 is fine compared to the rest of the industry. ZS outperforms 68.68% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that ZS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, ZS is not doing good in the industry: 72.95% of the companies in the same industry are doing better.
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 | 5.58 |
ROIC/WACCN/A
WACC10.64%
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 comparable to the rest of the industry.
A Quick Ratio of 1.82 indicates that ZS should not have too much problems paying its short term obligations.
ZS's Quick ratio of 1.82 is in line compared to the rest of the industry. ZS outperforms 55.87% of its industry peers.
| 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%.
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.
ZS shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.24%.
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)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 very strong growth in Earnings Per Share. The EPS will grow by 21.82% on average per year.
The Revenue is expected to grow by 19.54% on average over the next years. This is quite good.
EPS Next Y19.45%
EPS Next 2Y18.48%
EPS Next 3Y19.19%
EPS Next 5Y21.82%
Revenue Next Year23.88%
Revenue Next 2Y21.58%
Revenue Next 3Y20.69%
Revenue Next 5Y19.54%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 69.70 indicates a quite expensive valuation of ZS.
ZS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.37, ZS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 52.53, the valuation of ZS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ZS.
ZS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.7 | ||
| Fwd PE | 52.53 |
4.2 Price Multiples
ZS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ZS is valued a bit cheaper than 61.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.14 | ||
| EV/EBITDA | 3935.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ZS's earnings are expected to grow with 19.19% in the coming years.
PEG (NY)3.58
PEG (5Y)1.01
EPS Next 2Y18.48%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
ZS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
241.85
-1.81 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.62%
Inst Owner Change63.98%
Ins Owners35.96%
Ins Owner Change3.48%
Market Cap38.28B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target334.58 (38.34%)
Short Float %5.47%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.71%
PT rev (3m)3.58%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.49%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.7 | ||
| Fwd PE | 52.53 | ||
| P/S | 13.51 | ||
| P/FCF | 45.14 | ||
| P/OCF | 35.14 | ||
| P/B | 19.31 | ||
| P/tB | 49.55 | ||
| EV/EBITDA | 3935.94 |
EPS(TTM)3.47
EY1.43%
EPS(NY)4.6
Fwd EY1.9%
FCF(TTM)5.36
FCFY2.22%
OCF(TTM)6.88
OCFY2.85%
SpS17.9
BVpS12.52
TBVpS4.88
PEG (NY)3.58
PEG (5Y)1.01
Graham Number31.27
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 | 5.58 |
F-Score4
WACC10.64%
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 Y19.45%
EPS Next 2Y18.48%
EPS Next 3Y19.19%
EPS Next 5Y21.82%
Revenue 1Y (TTM)23.24%
Revenue growth 3Y34.82%
Revenue growth 5Y44.03%
Sales Q2Q%25.5%
Revenue Next Year23.88%
Revenue Next 2Y21.58%
Revenue Next 3Y20.69%
Revenue Next 5Y19.54%
EBIT growth 1Y-20.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year55.15%
EBIT Next 3Y33.97%
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.
What is the valuation status for ZS stock?
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 valuation of ZSCALER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ZSCALER INC (ZS) is 69.7 and the Price/Book (PB) ratio is 19.31.
How financially healthy is ZSCALER INC?
The financial health rating of ZSCALER INC (ZS) is 5 / 10.