(ZS) Zscaler - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 29.323m USD | Total Return: -29.1% in 12m
Avg Turnover: 390M
EPS Trend: 55.9%
Qual. Beats: 1
Rev. Trend: 99.5%
Qual. Beats: 11
Warnings
Interest Coverage Ratio 0.0 is critical
Tailwinds
No distinct edge detected
Zscaler, Inc. is a global cloud security provider specializing in zero-trust architecture. Its primary offerings include Zscaler Internet Access (ZIA) and Zscaler Private Access (ZPA), which facilitate secure connections between users, workloads, and applications regardless of location. The company’s comprehensive portfolio extends to data protection, security operations, and digital experience monitoring for diverse industries including finance, healthcare, and technology.
The company operates on a Software-as-a-Service (SaaS) business model, providing security through a distributed cloud platform rather than traditional on-premises hardware appliances. This approach aligns with the industry-wide shift toward Secure Access Service Edge (SASE) frameworks, which integrate wide-area networking with comprehensive network security functions.
You can further evaluate the company’s long-term valuation metrics and growth trajectory on ValueRay.
Headquartered in San Jose, California, Zscaler has evolved from its 2007 origins as SafeChannel, Inc. to become a significant player in the Systems Software sub-industry. Its platform secures communications across branches, IoT/OT environments, and public generative AI tools, addressing the increasing complexity of modern enterprise attack surfaces.
- Enterprise migration toward Zero Trust architecture accelerates subscription revenue growth
- Expansion into federal government and public sector sectors drives contract value
- High research and development spending pressures short-term GAAP operating margins
- Competition from traditional firewall vendors impacts market share in cloud security
- Growing adoption of AI-driven data protection tools increases average revenue per user
| Net Income: -67.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -0.92 > 1.0 |
| NWC/Revenue: 70.30% < 20% (prev 25.45%; Δ 44.85% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.11b > Net Income -67.6m |
| Net Debt (-1.49b) to EBITDA (137.7m): -10.80 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (159.7m) vs 12m ago 3.91% < -2% |
| Gross Margin: 76.54% > 18% (prev 0.78%; Δ 7.58k% > 0.5%) |
| Asset Turnover: 51.04% > 50% (prev 48.38%; Δ 2.66% > 0%) |
| Interest Coverage Ratio: 0.04 > 6 (EBITDA TTM 137.7m / Interest Expense TTM 10.4m) |
| A: 0.31 (Total Current Assets 4.45b - Total Current Liabilities 2.34b) / Total Assets 6.75b |
| B: -0.18 (Retained Earnings -1.24b / Total Assets 6.75b) |
| C: 0.00 (EBIT TTM 396k / Avg Total Assets 5.88b) |
| D: -0.27 (Book Value of Equity -1.22b / Total Liabilities 4.56b) |
| Altman-Z'' = 1.17 = BB |
| DSRI: 0.87 (Receivables 551.8m/514.3m, Revenue 3.00b/2.42b) |
| GMI: 1.01 (GM 76.54% / 77.68%) |
| AQI: 1.44 (AQ_t 0.24 / AQ_t-1 0.17) |
| SGI: 1.24 (Revenue 3.00b / 2.42b) |
| TATA: -0.17 (NI -67.6m - CFO 1.11b) / TA 6.75b) |
| Beneish M = -2.87 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 171.01 with a total of 2,525,910 shares traded.
Over the past week, the price has changed by +13.24%,
over one month by +34.59%,
over three months by +22.10% and
over the past year by -29.12%.
Zscaler has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy ZS.
- StrongBuy: 24
- Buy: 9
- Hold: 11
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 223.4 | 30.6% |
P/S = 9.7708
P/B = 13.3534
P/EG = 1.961
Revenue TTM = 3.00b USD
EBIT TTM = 396k USD
EBITDA TTM = 137.7m USD
Long Term Debt = 1.70b USD (from longTermDebt, last quarter)
Short Term Debt = 67.6m USD (from shortTermDebt, last quarter)
Debt = 2.03b USD (from shortLongTermDebtTotal, last quarter) + Leases 161.7m
Net Debt = -1.49b USD (calculated: Debt 2.03b - CCE 3.51b)
Enterprise Value = 27.8b USD (29.3b + Debt 2.03b - CCE 3.51b)
Interest Coverage Ratio = 0.04 (Ebit TTM 396k / Interest Expense TTM 10.4m)
EV/FCF = 47.71x (Enterprise Value 27.8b / FCF TTM 583.4m)
FCF Yield = 2.10% (FCF TTM 583.4m / Enterprise Value 27.8b)
FCF Margin = 19.44% (FCF TTM 583.4m / Revenue TTM 3.00b)
Net Margin = -2.25% (Net Income TTM -67.6m / Revenue TTM 3.00b)
Gross Margin = 76.54% ((Revenue TTM 3.00b - Cost of Revenue TTM 704.1m) / Revenue TTM)
Gross Margin QoQ = 76.55% (prev 76.56%)
Tobins Q-Ratio = 4.12 (Enterprise Value 27.8b / Total Assets 6.75b)
Interest Expense / Debt = 0.51% (Interest Expense 10.4m / Debt 2.03b)
Taxrate = 21.0% (US default 21%)
NOPAT = 313k (EBIT 396k * (1 - 21.00%))
Current Ratio = 1.88 (Total Current Assets 4.45b / Total Current Liabilities 2.37b)
Debt / Equity = 0.92 (Debt 2.03b / totalStockholderEquity, last quarter 2.20b)
Debt / EBITDA = -10.80 (Net Debt -1.49b / EBITDA 137.7m)
Debt / FCF = -2.55 (Net Debt -1.49b / FCF TTM 583.4m)
Total Stockholder Equity = 1.95b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.15% (Net Income -67.6m / Total Assets 6.75b)
RoE = -2.13% (Net Income TTM -67.6m / Total Stockholder Equity 3.18b)
RoCE = 0.01% (EBIT 396k / Capital Employed (Equity 3.18b + L.T.Debt 1.70b))
RoIC = 0.01% (NOPAT 313k / Invested Capital 4.48b)
WACC = 10.13% (E(29.3b)/V(31.3b) * Re(10.80%) + D(2.03b)/V(31.3b) * Rd(0.51%) * (1-Tc(0.21)))
Discount Rate = 10.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 3.55%
[DCF] Terminal Value 72.44% ; FCFF base≈541.6m ; Y1≈620.8m ; Y5≈913.6m
[DCF] Fair Price = 74.31 (EV 10.5b - Net Debt -1.49b = Equity 11.9b / Shares 160.8m; r=10.13% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 55.85 | EPS CAGR: 14.64% | SUE: 1.64 | # QB: 1
Revenue Correlation: 99.52 | Revenue CAGR: 28.31% | SUE: 3.33 | # QB: 11
EPS current Year (2026-07-31): EPS=4.02 | Chg30d=-0.13% | Revisions=-20% | GrowthEPS=+22.6% | GrowthRev=+24.1%
EPS next Year (2027-07-31): EPS=4.58 | Chg30d=-0.15% | Revisions=+0% | GrowthEPS=+13.9% | GrowthRev=+19.6%
[Analyst] Revisions Ratio: -20%