ZSCALER INC (ZS) Stock Fundamental Analysis

NASDAQ:ZS • US98980G1022

177.72 USD
+6.82 (+3.99%)
At close: Feb 13, 2026
178 USD
+0.28 (+0.16%)
After Hours: 2/13/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ZS. ZS was compared to 276 industry peers in the Software industry. ZS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ZS is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year ZS was profitable.
  • ZS had a positive operating cash flow in the past year.
  • ZS had negative earnings in each of the past 5 years.
  • 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

  • ZS has a Return On Assets of -0.63%. This is comparable to the rest of the industry: ZS outperforms 54.51% of its industry peers.
  • ZS has a Return On Equity (-2.07%) which is comparable to the rest of the industry.
Industry RankSector 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
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 has a Gross Margin of 76.65%. This is in the better half of the industry: ZS outperforms 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 RankSector 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%
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. 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.
  • The number of shares outstanding for ZS has been increased compared to 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

  • An Altman-Z score of 4.22 indicates that ZS is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ZS (4.22) is better than 73.65% of its industry peers.
  • 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.
  • With a decent Debt to FCF ratio value of 2.00, ZS is doing good in the industry, outperforming 67.15% of the companies in the same industry.
  • A Debt/Equity ratio of 0.86 indicates that ZS is somewhat dependend on debt financing.
  • ZS has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: ZS underperforms 73.65% of its industry peers.
  • Although ZS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 0.86
Debt/FCF 2
Altman-Z 4.22
ROIC/WACCN/A
WACC10.69%
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 1.82. 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 (1.82) 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.
  • The Quick ratio of ZS (1.82) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 1.82
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

8

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 quite strong growth in Earnings Per Share. The EPS will grow by 19.81% on average per year.
  • Based on estimates for the next years, ZS will show a very strong growth in Revenue. The Revenue will grow by 20.01% on average per year.
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

  • 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

2

4. Valuation

4.1 Price/Earnings Ratio

  • ZS is valuated quite expensively with a Price/Earnings ratio of 51.22.
  • Compared to the rest of the industry, the Price/Earnings ratio of ZS is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 26.68. ZS is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 38.31 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 28.06, ZS is valued a bit more expensive.
Industry RankSector Rank
PE 51.22
Fwd PE 38.31
ZS Price Earnings VS Forward Price EarningsZS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZS.
  • 61.01% of the companies in the same industry are more expensive than ZS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 33.42
EV/EBITDA 2784.39
ZS Per share dataZS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)2.53
PEG (5Y)0.75
EPS Next 2Y18.92%
EPS Next 3Y19.33%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

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

ZSCALER INC

NASDAQ:ZS (2/13/2026, 8:00:02 PM)

After market: 178 +0.28 (+0.16%)

177.72

+6.82 (+3.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-25
Earnings (Next)02-26
Inst Owners55.76%
Inst Owner Change-93.97%
Ins Owners35.42%
Ins Owner Change-0.48%
Market Cap28.34B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.75
Price Target326.91 (83.95%)
Short Float %6.73%
Short Ratio3.52
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)8.32%
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)1.32%
EPS NY rev (1m)0.42%
EPS NY rev (3m)4.04%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
Industry RankSector Rank
PE 51.22
Fwd PE 38.31
P/S 10
P/FCF 33.42
P/OCF 26.02
P/B 14.3
P/tB 36.68
EV/EBITDA 2784.39
EPS(TTM)3.47
EY1.95%
EPS(NY)4.64
Fwd EY2.61%
FCF(TTM)5.32
FCFY2.99%
OCF(TTM)6.83
OCFY3.84%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)2.53
PEG (5Y)0.75
Graham Number31.15
Profitability
Industry RankSector 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 RankSector 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 4.22
F-Score4
WACC10.69%
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 5Y27.39%
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.