232.05 USD
-0.5 (-0.22%)
231.82 USD
-0.23 (-0.1%)
Overall ZS gets a fundamental rating of 4 out of 10. We evaluated ZS against 278 industry peers in the Software industry. The financial health of ZS is average, but there are quite some concerns on its profitability. ZS is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
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.
1.2 Ratios
The Return On Assets of ZS (-0.63%) is comparable to the rest of the industry.
With a Return On Equity value of -2.07%, ZS perfoms like the industry average, outperforming 57.19% 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
With a decent Gross Margin value of 76.65%, ZS is doing good in the industry, outperforming 71.22% of the companies in the same industry.
ZS's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for ZS so they could not be analyzed.
| 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.
Compared to 1 year ago, ZS has more shares outstanding
Compared to 5 years ago, ZS has more shares outstanding
Compared to 1 year ago, ZS has a worse debt to assets ratio.
2.2 Solvency
ZS has an Altman-Z score of 5.37. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ZS (5.37) is better than 71.94% 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 67.99% 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 73.02% 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 | 5.37 |
ROIC/WACCN/A
WACC10.82%
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.
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.
The Quick ratio of ZS (1.82) is comparable to the rest of the 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.
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%.
The Revenue has been growing by 44.03% on average over the past years. This is a very strong growth!
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
ZS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.82% yearly.
Based on estimates for the next years, ZS will show a quite strong growth in Revenue. The Revenue will grow by 19.54% on average per year.
EPS Next Y19.74%
EPS Next 2Y18.63%
EPS Next 3Y19.33%
EPS Next 5Y21.82%
Revenue Next Year23.95%
Revenue Next 2Y21.61%
Revenue Next 3Y20.67%
Revenue Next 5Y19.54%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 66.87, which means the current valuation is very expensive for ZS.
The rest of the industry has a similar Price/Earnings ratio as ZS.
When comparing the Price/Earnings ratio of ZS to the average of the S&P500 Index (26.61), we can say ZS is valued expensively.
ZS is valuated quite expensively with a Price/Forward Earnings ratio of 50.27.
The rest of the industry has a similar Price/Forward Earnings ratio as ZS.
The average S&P500 Price/Forward Earnings ratio is at 24.01. ZS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.87 | ||
| Fwd PE | 50.27 |
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 60.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.63 | ||
| EV/EBITDA | 3759.63 |
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.
ZS's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.39
PEG (5Y)0.97
EPS Next 2Y18.63%
EPS Next 3Y19.33%
5. Dividend
5.1 Amount
ZS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
232.05
-0.5 (-0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners55.8%
Inst Owner Change69.61%
Ins Owners35.44%
Ins Owner Change-0.54%
Market Cap37.01B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target333.97 (43.92%)
Short Float %5.72%
Short Ratio3.45
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)0.69%
PT rev (3m)0.52%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)3.61%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.87 | ||
| Fwd PE | 50.27 | ||
| P/S | 13.06 | ||
| P/FCF | 43.63 | ||
| P/OCF | 33.97 | ||
| P/B | 18.67 | ||
| P/tB | 47.9 | ||
| EV/EBITDA | 3759.63 |
EPS(TTM)3.47
EY1.5%
EPS(NY)4.62
Fwd EY1.99%
FCF(TTM)5.32
FCFY2.29%
OCF(TTM)6.83
OCFY2.94%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)3.39
PEG (5Y)0.97
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 | 5.37 |
F-Score4
WACC10.82%
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 5Y21.82%
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 5Y19.54%
EBIT growth 1Y-20.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.68%
EBIT Next 3Y33.58%
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 66.87 and the Price/Book (PB) ratio is 18.67.
How financially healthy is ZSCALER INC?
The financial health rating of ZSCALER INC (ZS) is 5 / 10.