Zscaler, Inc. cash flow to debt ratio of 54.13% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Zscaler, Inc.'s free cash flow has increased 24.23% from $584.95M last year to $726.69M, signaling increasing performance

Zscaler, Inc.'s debt to equity ratio is 0.79, which means that the company's assets are unhealthy financed, signaling financial risk.

Zscaler, Inc.'s debt has decreased relative to shareholder equity from 0.97 last year to 0.79 today, signaling strengthened financials

Zscaler, Inc. has a net cash position, so leverage is healthy.

Zscaler, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Zscaler, Inc.'s profit margin has increased (-8.40%) in the last year from -2.66% to -2.44%, signaling increasing performance

Zscaler, Inc.'s short-term assets of $4.89B exceed its short-term liabilities of $2.43B

Zscaler, Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Zscaler, Inc.'s return on equity of -3.71%, is lower than 15.00%, indicating bad performance

Zscaler, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Zscaler, Inc. had positive net income in only 0 out of 5 years, indicating unstable earnings

Zscaler, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Zscaler, Inc. has a free cash flow yield of 2.54%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Zscaler, Inc.'s yearly earnings has increased -28.12% since last year from $-57.71M to $-41.48M, signaling increasing performance

Zscaler, Inc.'s yearly revenue has increased 23.31% since last year from $2.17B to $2.67B, signaling increasing performance

ROIC -3.22% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Zscaler, Inc.'s 3-year revenue CAGR of 34.81% is positive, indicating growing revenue over the past 3 years

Zscaler, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Zscaler, Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Zscaler, Inc. is overvalued relative to its fair value price of 83.91 based on Discounted Cash Flow model

Zscaler, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Zscaler, Inc. is overvalued relative to its fair value price of 8.58 based on EBITDA multiple model

Zscaler, Inc. has an EV/EBITDA ratio of 238.36x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Zscaler, Inc. is overvalued relative to its fair value price of -44.65 based on Earnings Fair Value model

Zscaler, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Zscaler, Inc. has a price-to-book ratio of 12.00x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Zscaler, Inc. has a price-to-sales ratio of 8.95x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue