Zscaler, Inc. (ZS) Factsheet
Zscaler, Inc. (ZS) Stock Analysis
Analysis from 10-Q filed 2025-11-25. Data as of Q2 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC -5.6%. FCF margin 30.4%. D/E 0.7x. Source: 10-Q filed 2025-11-25.
| Metric | Value | Context |
|---|---|---|
| ROIC | -5.6% | Below expectations |
| FCF Margin | 30.4% | Strong cash generation |
| Debt/Equity | 0.7x | Moderate leverage |
ROIC -5.6% — Bottom 50% of sector peers. FCF margin 30.4% — Top 25%.
Explore Zscaler, Inc.: Earnings History | Filings
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 -5.6% ROIC, Bottom 50% in Technology
ROIC TTM -5.6%, sector median 3.6%, Bottom 50%. DuPont: NOPAT margin -5.9% × asset turnover 0.5x. Gross margin 76.7%. Operating margin -4.7%. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -5.6% | Red flag | Below sector median of 3.6% |
| Return on Equity (ROE) | -3.8% | Red flag | Moderate equity returns |
| Gross Margin | 76.7% | Excellent | Strong pricing power |
| Operating Margin | -4.7% | Warning | Moderate operational efficiency |
Cash Flow: Zscaler, Inc. generates $963.5M FCF at 30.4% margin, positive NaN/8 quarters
FCF TTM $963.5M. FCF margin 30.4%, Top 25%. OCF/Net income -14.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 30.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $963.5M | Good | Positive cash generation |
| OCF/Net Income | -14.2x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Zscaler, Inc. at 0.7x leverage
Debt/Equity 0.7x. Total debt $1.7B, cash & investments $982.1M. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Adequate | Moderate leverage |
| Net Cash Position | $-717.5M | Adequate | Net debt position |
Valuation: Zscaler, Inc. trades at -268.3x earnings
P/E -268.3x. EV/Sales 6.4x. FCF yield 4.6%. Source: 10-Q filed 2025-11-25.
| Metric | ZS | Rating | Context |
|---|---|---|---|
| P/E Ratio | -268.3x | Red flag | Reasonable valuation |
| EV/Sales | 6.4x | Adequate | Growth premium priced in |
| FCF Yield | 4.6% | Good | 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) | -5.6% | Bottom 50% | -1.6x below |
| Free Cash Flow Margin | 30.4% | Top 25% | 3.6x above |
| Gross Margin | 76.7% | Top 25% | 1.5x above |
| Operating Margin | -4.7% | Bottom 50% | -1.0x below |
| Return on Equity (ROE) | -3.8% | Bottom 50% | -0.7x below |
Financial Scorecard
| Metric | ZS | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -5.6% | Red flag | Bottom 50% of sector (median: 3.6%) |
| Free Cash Flow Margin | 30.4% | Excellent | Top 25% of sector (median: 8.5%) |
| Gross Margin | 76.7% | Excellent | Top 25% of sector (median: 49.9%) |
| Debt to Equity Ratio | 71.8% | Adequate | Elevated but manageable |
| Free Cash Flow Yield | 4.6% | 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 -5.6%. Sector median 3.6%. 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 30.4%, generating $963.5 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 -268.3x, which is above the sector median of N/A. EV/Sales 6.4x. FCF yield 4.6%. Source: 10-Q filed 2025-11-25.
Q: How much debt does Zscaler, Inc. have?
Zscaler, Inc. (ZS) has a debt-to-equity ratio of 0.7x with total debt of $1.7 billion. Net debt $717.5 million. Source: 10-Q filed 2025-11-25.
Q: What is Zscaler, Inc.'s revenue and earnings growth?
Zscaler, Inc. (ZS) grew revenue by 24.6% year-over-year. EPS -92.4% 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 -5.6%, sector median 3.6% (Bottom 50%). FCF margin 30.4%, sector median 8.5% (Top 25%). Gross margin 76.7%, 26.8pp 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.?
No quantitative warning flags fired for Zscaler, Inc. (ZS) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-25.
Data Source: Data sourced from 10-Q filed 2025-11-25. TTM metrics as of Q2 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.