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Zscaler (WBO:ZSCA) Piotroski F-Score : 6 (As of Dec. 14, 2024)


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What is Zscaler Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Zscaler has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Zscaler's Piotroski F-Score or its related term are showing as below:

WBO:ZSCA' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 6
Current: 6

During the past 10 years, the highest Piotroski F-Score of Zscaler was 6. The lowest was 3. And the median was 5.


Zscaler Piotroski F-Score Historical Data

The historical data trend for Zscaler's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zscaler Piotroski F-Score Chart

Zscaler Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 4.00 5.00 5.00 6.00

Zscaler Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 6.00 6.00 6.00

Competitive Comparison of Zscaler's Piotroski F-Score

For the Software - Infrastructure subindustry, Zscaler's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zscaler's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Zscaler's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Zscaler's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct24) TTM:Last Year (Oct23) TTM:
Net Income was -26.135 + 17.824 + -13.718 + -11.063 = €-33 Mil.
Cash Flow from Operations was 130.419 + 161.622 + 187.68 + 304.166 = €784 Mil.
Revenue was 481.949 + 515.583 + 546.624 + 576.463 = €2,121 Mil.
Gross Profit was 374.36 + 405.299 + 426.575 + 446.601 = €1,653 Mil.
Average Total Assets from the begining of this year (Oct23)
to the end of this year (Oct24) was
(3442.898 + 3611.619 + 3913.236 + 4337.98 + 4322.864) / 5 = €3925.7194 Mil.
Total Assets at the begining of this year (Oct23) was €3,443 Mil.
Long-Term Debt & Capital Lease Obligation was €38 Mil.
Total Current Assets was €3,115 Mil.
Total Current Liabilities was €2,721 Mil.
Net Income was -53.316 + -41.994 + -27.729 + -31.708 = €-155 Mil.

Revenue was 359.691 + 381.946 + 411.325 + 470.378 = €1,623 Mil.
Gross Profit was 278.394 + 294.531 + 318.501 + 364.888 = €1,256 Mil.
Average Total Assets from the begining of last year (Oct22)
to the end of last year (Oct23) was
(2878.268 + 2821.079 + 2919.049 + 3261.919 + 3442.898) / 5 = €3064.6426 Mil.
Total Assets at the begining of last year (Oct22) was €2,878 Mil.
Long-Term Debt & Capital Lease Obligation was €1,115 Mil.
Total Current Assets was €2,738 Mil.
Total Current Liabilities was €1,396 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Zscaler's current Net Income (TTM) was -33. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Zscaler's current Cash Flow from Operations (TTM) was 784. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct23)
=-33.092/3442.898
=-0.00961167

ROA (Last Year)=Net Income/Total Assets (Oct22)
=-154.747/2878.268
=-0.05376393

Zscaler's return on assets of this year was -0.00961167. Zscaler's return on assets of last year was -0.05376393. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Zscaler's current Net Income (TTM) was -33. Zscaler's current Cash Flow from Operations (TTM) was 784. ==> 784 > -33 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct23 to Oct24
=38.499/3925.7194
=0.00980686

Gearing (Last Year: Oct23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct22 to Oct23
=1115.218/3064.6426
=0.36389822

Zscaler's gearing of this year was 0.00980686. Zscaler's gearing of last year was 0.36389822. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct24)=Total Current Assets/Total Current Liabilities
=3115.49/2720.594
=1.14515065

Current Ratio (Last Year: Oct23)=Total Current Assets/Total Current Liabilities
=2738.336/1396.274
=1.96117381

Zscaler's current ratio of this year was 1.14515065. Zscaler's current ratio of last year was 1.96117381. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Zscaler's number of shares in issue this year was 152.557. Zscaler's number of shares in issue last year was 147.625. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1652.835/2120.619
=0.77941158

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1256.314/1623.34
=0.77390688

Zscaler's gross margin of this year was 0.77941158. Zscaler's gross margin of last year was 0.77390688. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct23)
=2120.619/3442.898
=0.61594012

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct22)
=1623.34/2878.268
=0.5639989

Zscaler's asset turnover of this year was 0.61594012. Zscaler's asset turnover of last year was 0.5639989. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+1+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Zscaler has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Zscaler  (WBO:ZSCA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Zscaler Piotroski F-Score Related Terms

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Zscaler Business Description

Comparable Companies
Traded in Other Exchanges
Address
120 Holger Way, San Jose, CA, USA, 95134
Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.

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