ZSCALER INC (ZS) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ZS • US98980G1022

169.39 USD
-16.4 (-8.83%)
At close: Feb 5, 2026
167.6 USD
-1.79 (-1.06%)
After Hours: 2/5/2026, 8:03:45 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ZS. ZS was compared to 278 industry peers in the Software industry. The financial health of ZS is average, but there are quite some concerns on its profitability. ZS shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

3

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.
  • Each year in the past 5 years ZS had a positive operating cash flow.
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's Return On Assets of -0.63% is in line compared to the rest of the industry. ZS outperforms 53.96% of its industry peers.
  • Looking at the Return On Equity, with a value of -2.07%, ZS is in line with its industry, outperforming 56.12% of the companies in the same 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's Gross Margin of 76.65% is fine compared to the rest of the industry. ZS outperforms 70.86% of its industry peers.
  • 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 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.
  • 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

  • An Altman-Z score of 4.40 indicates that ZS is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.40, ZS is doing good in the industry, outperforming 74.46% 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.
  • The Debt to FCF ratio of ZS (2.00) is better than 67.63% of its industry peers.
  • A Debt/Equity ratio of 0.86 indicates that ZS is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ZS (0.86) is worse than 73.38% 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 RankSector Rank
Debt/Equity 0.86
Debt/FCF 2
Altman-Z 4.4
ROIC/WACCN/A
WACC10.86%
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.
  • ZS has a Current ratio (1.82) which is comparable to the rest of the industry.
  • 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.
  • Looking at the Quick ratio, with a value of 1.82, ZS is in line with its industry, outperforming 55.04% of the companies in the same 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

  • 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%.
  • ZS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 44.03% yearly.
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

  • The Earnings Per Share is expected to grow by 19.81% on average over the next years. This is quite good.
  • 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 Y19.74%
EPS Next 2Y18.63%
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.
  • 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

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 48.82, which means the current valuation is very expensive for ZS.
  • Compared to the rest of the industry, the Price/Earnings ratio of ZS is on the same level as its industry peers.
  • ZS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.67.
  • With a Price/Forward Earnings ratio of 36.70, ZS can be considered very expensive at the moment.
  • ZS's Price/Forward Earnings is on the same level as the industry average.
  • ZS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
Industry RankSector Rank
PE 48.82
Fwd PE 36.7
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZS is on the same level as its industry peers.
  • ZS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZS is cheaper than 61.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.85
EV/EBITDA 2929.25
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.
  • ZS's earnings are expected to grow with 19.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)0.71
EPS Next 2Y18.63%
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 (2/5/2026, 8:03:45 PM)

After market: 167.6 -1.79 (-1.06%)

169.39

-16.4 (-8.83%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-25
Earnings (Next)02-19
Inst Owners55.76%
Inst Owner Change0.26%
Ins Owners35.42%
Ins Owner Change-0.48%
Market Cap27.01B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.79
Price Target330.26 (94.97%)
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)-1.11%
PT rev (3m)-0.59%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)1.38%
EPS NY rev (1m)0%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
Industry RankSector Rank
PE 48.82
Fwd PE 36.7
P/S 9.53
P/FCF 31.85
P/OCF 24.8
P/B 13.63
P/tB 34.96
EV/EBITDA 2929.25
EPS(TTM)3.47
EY2.05%
EPS(NY)4.62
Fwd EY2.72%
FCF(TTM)5.32
FCFY3.14%
OCF(TTM)6.83
OCFY4.03%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)2.47
PEG (5Y)0.71
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 4.4
F-Score4
WACC10.86%
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 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 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.


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 19.74% in the next year.