ZSCALER INC (ZS) Fundamental Analysis & Valuation

NASDAQ:ZS • US98980G1022

Current stock price

135.925 USD
+0.43 (+0.31%)
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.
  • 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.
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 -1.00%. This is comparable to the rest of the industry: ZS outperforms 53.31% of its industry peers.
  • 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 has a better Gross Margin (76.56%) than 71.32% of its industry peers.
  • 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 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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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.
  • Compared to 1 year ago, ZS has more shares outstanding
  • ZS has more shares outstanding than it did 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

  • ZS has an Altman-Z score of 3.37. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ZS (3.37) is better than 67.65% 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.
  • The Debt to FCF ratio of ZS (1.95) is better than 66.18% of its industry peers.
  • A Debt/Equity ratio of 0.78 indicates that 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: 74.26% 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 RankSector Rank
Debt/Equity 0.78
Debt/FCF 1.95
Altman-Z 3.37
ROIC/WACCN/A
WACC10.49%
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.
  • With a Current ratio value of 1.90, ZS perfoms like the industry average, outperforming 55.51% of the companies in the same industry.
  • ZS has a Quick 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.
  • ZS has a Quick ratio of 1.90. This is comparable to the rest of the industry: ZS outperforms 56.25% 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

8

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.
  • ZS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.71% yearly.
  • 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

  • The Earnings Per Share is expected to grow by 18.16% on average over the next years. This is quite good.
  • ZS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.96% yearly.
EPS Next Y25.85%
EPS Next 2Y20.05%
EPS Next 3Y20.17%
EPS Next 5Y18.16%
Revenue Next Year24.75%
Revenue Next 2Y22.18%
Revenue Next 3Y20.91%
Revenue Next 5Y19.96%

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.
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

  • A Price/Earnings ratio of 36.74 indicates a quite expensive valuation of ZS.
  • ZS's Price/Earnings ratio is in line with the industry average.
  • ZS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.42.
  • With a Price/Forward Earnings ratio of 28.76, ZS can be considered very expensive at the moment.
  • ZS's Price/Forward Earnings ratio is in line with the industry average.
  • ZS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.74
Fwd PE 28.76
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

  • ZS's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ZS indicates a somewhat cheap valuation: ZS is cheaper than 65.07% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 25.01
EV/EBITDA 914.58
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.
  • A more expensive valuation may be justified as ZS's earnings are expected to grow with 20.17% in the coming years.
PEG (NY)1.42
PEG (5Y)0.53
EPS Next 2Y20.05%
EPS Next 3Y20.17%

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 (4/27/2026, 10:38:10 AM)

135.925

+0.43 (+0.31%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners57.94%
Inst Owner Change0.57%
Ins Owners35.13%
Ins Owner Change-1.22%
Market Cap21.86B
Revenue(TTM)3.00B
Net Income(TTM)-67.63M
Analysts82.41
Price Target236.3 (73.85%)
Short Float %7.86%
Short Ratio2.6
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)-23.12%
PT rev (3m)-28.45%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)6.66%
EPS NY rev (1m)1.41%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 36.74
Fwd PE 28.76
P/S 7.28
P/FCF 25.01
P/OCF 19.62
P/B 9.95
P/tB 21.83
EV/EBITDA 914.58
EPS(TTM)3.7
EY2.72%
EPS(NY)4.73
Fwd EY3.48%
FCF(TTM)5.43
FCFY4%
OCF(TTM)6.93
OCFY5.1%
SpS18.66
BVpS13.66
TBVpS6.23
PEG (NY)1.42
PEG (5Y)0.53
Graham Number33.7189 (-75.19%)
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 3.37
F-Score3
WACC10.49%
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 Y25.85%
EPS Next 2Y20.05%
EPS Next 3Y20.17%
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 2Y22.18%
Revenue Next 3Y20.91%
Revenue Next 5Y19.96%
EBIT growth 1Y-33.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year58.52%
EBIT Next 3Y33.87%
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 4 / 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 36.74 and the Price/Book (PB) ratio is 9.95.


Can you provide the financial health for ZS stock?

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