Zscaler, Inc. (ZS) Factsheet
Zscaler, Inc. (ZS) Stock Analysis
Analysis from 10-Q filed 2025-11-25. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC -12.2%. FCF margin 31.5%. D/E 0.0x. Source: 10-Q filed 2025-11-25.
| Metric | Value | Context |
|---|---|---|
| ROIC | -12.2% | Below expectations |
| FCF Margin | 31.5% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC -12.2% — Bottom 50% of sector peers. FCF margin 31.5% — Top 10%.
Explore Zscaler, Inc.: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ZS: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Zscaler, Inc. earns -12.2% ROIC, Bottom 50% in Technology
ROIC TTM -12.2%, sector median 4.6%, Bottom 50%. DuPont: NOPAT margin -12.2% × asset turnover 0.5x. Gross margin 76.5%. Operating margin -4.9%. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -12.2% | Red flag | Below sector median of 4.6% |
| Return on Equity (ROE) | -3.6% | Red flag | Moderate equity returns |
| Gross Margin | 76.5% | Excellent | Strong pricing power |
| Operating Margin | -4.9% | Warning | Moderate operational efficiency |
Cash Flow: Zscaler, Inc. generates $946.8M FCF at 31.5% margin, positive NaN/8 quarters
FCF TTM $946.8M. FCF margin 31.5%, Top 10%. OCF/Net income -16.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 31.5% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $946.8M | Good | Positive cash generation |
| OCF/Net Income | -16.5x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Zscaler, Inc. at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: Zscaler, Inc. trades at -476.2x earnings
P/E -476.2x. EV/Sales 9.9x. FCF yield 3.0%. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| P/E Ratio | -476.2x | Red flag | Reasonable valuation |
| EV/Sales | 9.9x | Adequate | Growth premium priced in |
| FCF Yield | 3.0% | Adequate | Lower cash yield |
Capital Allocation: Zscaler, Inc. returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -12.2% | Bottom 50% | -2.6x below |
| Free Cash Flow Margin | 31.5% | Top 10% | 3.7x above |
| Gross Margin | 76.5% | Top 25% | 1.5x above |
| Operating Margin | -4.9% | Bottom 50% | -1.0x below |
| Return on Equity (ROE) | -3.6% | Bottom 50% | -0.7x below |
Financial Scorecard
| Metric | ZS | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -12.2% | Red flag | Bottom 50% of sector (median: 4.6%) |
| Free Cash Flow Margin | 31.5% | Excellent | Top 10% of sector (median: 8.5%) |
| Gross Margin | 76.5% | Excellent | Top 25% of sector (median: 51.0%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| Free Cash Flow Yield | 3.0% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Zscaler, Inc.'s Return on Invested Capital (ROIC)?
Zscaler, Inc. (ZS) has a trailing twelve-month Return on Invested Capital (ROIC) of -12.2%. Sector median 4.6%. Source: 10-Q filed 2025-11-25.
Q: What is Zscaler, Inc.'s Free Cash Flow Margin?
Zscaler, Inc. (ZS) has a free cash flow margin of 31.5%, generating $946.8 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-25.
Q: What is Zscaler, Inc.'s P/E ratio and how does it compare to peers?
Zscaler, Inc. (ZS) trades at a P/E ratio of -476.2x, which is above the sector median of N/A. EV/Sales 9.9x. FCF yield 3.0%. Source: 10-Q filed 2025-11-25.
Q: What is Zscaler, Inc.'s revenue and earnings growth?
Zscaler, Inc. (ZS) grew revenue by 23.9% year-over-year. EPS -281.8% YoY. Source: 10-Q filed 2025-11-25.
Q: How does Zscaler, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Zscaler, Inc. (ZS) shows: ROIC -12.2%, sector median 4.6% (Bottom 50%). FCF margin 31.5%, sector median 8.5% (Top 10%). Gross margin 76.5%, 25.5pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Zscaler, Inc.?
Quantitative warning flags for Zscaler, Inc. (ZS): 1) ROIC declining -3.4% over 8 quarters. Source: 10-Q filed 2025-11-25.
Data Source: Data sourced from 10-Q filed 2025-11-25. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.