Zscaler, Inc. cash flow to debt ratio of 60.87% 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 17.29% from $726.69M last year to $852.35M, signaling increasing performance

Zscaler, Inc.'s debt to equity ratio is 0.71, which means that the company's assets are unhealthy financed, signaling financial risk.

Zscaler, Inc.'s debt has decreased relative to shareholder equity from 1.00 last year to 0.71 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 was -1.55% last year and is -1.88% this year, signaling decreasing performance

Zscaler, Inc.'s short-term assets of $5.03B exceed its short-term liabilities of $2.96B

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 -2.76%, 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 2.73%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Zscaler, Inc.'s yearly earnings has decreased 52.32% since last year from $-41.48M to $-63.18M, signaling decreasing performance

Zscaler, Inc.'s yearly revenue has increased 25.42% since last year from $2.67B to $3.35B, signaling increasing performance

ROIC -2.68% (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 27.51% 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. has insufficient data to evaluate this check.

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 0.00 based on Base EBITDA Valuation model

Zscaler, Inc. has an EV/EBITDA ratio of 158.66x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Zscaler, Inc. has insufficient data to evaluate this check.

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 11.90x, 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 9.23x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue