217.41 USD
-2.91 (-1.32%)
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.
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.
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 of -0.63%. This is comparable to the rest of the industry: ZS outperforms 53.99% of its industry peers.
ZS has a Return On Equity (-2.07%) which is in line with its industry peers.
| 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
ZS's Gross Margin of 76.65% is fine compared to the rest of the industry. ZS outperforms 71.01% 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 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.
The number of shares outstanding for ZS has been increased compared to 1 year ago.
Compared to 5 years ago, ZS has more shares outstanding
ZS has a worse debt/assets ratio than last year.
2.2 Solvency
ZS has an Altman-Z score of 5.13. This indicates that ZS is financially healthy and has little risk of bankruptcy at the moment.
ZS has a better Altman-Z score (5.13) than 72.46% 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.
Looking at the Debt to FCF ratio, with a value of 2.00, ZS is in the better half of the industry, outperforming 68.12% 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 73.19% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 5.13 |
ROIC/WACCN/A
WACC10.75%
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.
The Earnings Per Share has been growing by 68.71% on average over the past years. This is a very strong growth
Looking at the last year, ZS shows a very strong growth in Revenue. 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
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.
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
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 62.65 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 rather expensive valuation when compared to the S&P500 average which is at 27.00.
With a Price/Forward Earnings ratio of 47.10, ZS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ZS.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, ZS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.65 | ||
| Fwd PE | 47.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ZS.
ZS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ZS is cheaper than 61.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.88 | ||
| EV/EBITDA | 3549.07 |
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)3.17
PEG (5Y)0.91
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% |
NASDAQ:ZS (1/9/2026, 2:43:08 PM)
217.41
-2.91 (-1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners55.76%
Inst Owner Change0%
Ins Owners35.42%
Ins Owner Change-0.73%
Market Cap34.67B
Revenue(TTM)2.83B
Net Income(TTM)-41.04M
Analysts81.43
Price Target333.97 (53.61%)
Short Float %6.21%
Short Ratio3.66
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)-0.18%
PT rev (3m)0.52%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0.24%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.65 | ||
| Fwd PE | 47.1 | ||
| P/S | 12.24 | ||
| P/FCF | 40.88 | ||
| P/OCF | 31.83 | ||
| P/B | 17.49 | ||
| P/tB | 44.88 | ||
| EV/EBITDA | 3549.07 |
EPS(TTM)3.47
EY1.6%
EPS(NY)4.62
Fwd EY2.12%
FCF(TTM)5.32
FCFY2.45%
OCF(TTM)6.83
OCFY3.14%
SpS17.77
BVpS12.43
TBVpS4.84
PEG (NY)3.17
PEG (5Y)0.91
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 | 5.13 |
F-Score4
WACC10.75%
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 Year56.97%
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.