(ZS) Zscaler - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 21.148m USD | Total Return: -56.4% in 12m
Avg Turnover: 732M
EPS Trend: 43.2%
Qual. Beats: 2
Rev. Trend: 99.7%
Qual. Beats: 12
Warnings
Interest Coverage Ratio -2.9 is critical
Below Avwap Earnings
Tailwinds
Confidence
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: -77.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.55 > 1.0 |
| NWC/Revenue: 67.85% < 20% (prev 29.33%; Δ 38.52% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.10b > Net Income -77.4m |
| Net Debt (-1.52b) to EBITDA (69.1m): -21.95 < 3 |
| Current Ratio: 1.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (160.7m) vs 12m ago 3.76% < -2% |
| Gross Margin: 76.65% > 18% (prev 77.33%; Δ -0.68% > 0.5%) |
| Asset Turnover: 51.03% > 50% (prev 47.70%; Δ 3.34% > 0%) |
| Interest Coverage Ratio: -2.93 > 6 (EBIT TTM -32.5m / Interest Expense TTM 11.1m) |
| A: 0.30 (Total Current Assets 4.65b - Total Current Liabilities 2.50b) / Total Assets 7.10b |
| B: -0.18 (Retained Earnings -1.25b / Total Assets 7.10b) |
| C: -0.01 (EBIT TTM -32.5m / Avg Total Assets 6.22b) |
| D: 0.50 (Book Value of Equity 2.37b / Total Liabilities 4.73b) |
| Altman-Z'' = 1.91 = BBB |
| DSRI: 0.95 (Receivables 730.5m/615.8m, Revenue 3.17b/2.55b) |
| GMI: 1.01 (GM 77.33% / 76.65%) |
| AQI: 1.52 (AQ_t 0.24 / AQ_t-1 0.16) |
| SGI: 1.25 (Revenue 3.17b / 2.55b) |
| TATA: -0.17 (NI -77.4m - CFO 1.10b) / TA 7.10b) |
| Beneish M = -2.59 (Cap -4..+1) = A |
As of June 08, 2026, the stock is trading at USD 130.78 with a total of 4,390,162 shares traded.
Over the past week, the price has changed by -6.41%,
over one month by -14.41%,
over three months by -19.58% and
over the past year by -56.39%.
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 | 193.8 | 48.2% |
P/E Forward = 29.4985
P/S = 6.6639
P/B = 9.2423
P/EG = 1.4734
Revenue TTM = 3.17b USD
EBIT TTM = -32.5m USD
EBITDA TTM = 69.1m USD
Long Term Debt = 1.70b USD (from longTermDebt, last quarter)
Short Term Debt = 66.8m USD (from shortTermDebt, last quarter)
Debt = 2.02b USD (from shortLongTermDebtTotal, last quarter) + Leases 161.5m
Net Debt = -1.52b USD (calculated: Debt 2.02b - CCE 3.54b)
Enterprise Value = 19.6b USD (21.1b + Debt 2.02b - CCE 3.54b)
Interest Coverage Ratio = -2.93 (Ebit TTM -32.5m / Interest Expense TTM 11.1m)
EV/FCF = 29.48x (Enterprise Value 19.6b / FCF TTM 666.0m)
FCF Yield = 3.39% (FCF TTM 666.0m / Enterprise Value 19.6b)
FCF Margin = 20.99% (FCF TTM 666.0m / Revenue TTM 3.17b)
Net Margin = -2.44% (Net Income TTM -77.4m / Revenue TTM 3.17b)
Gross Margin = 76.65% ((Revenue TTM 3.17b - Cost of Revenue TTM 740.9m) / Revenue TTM)
Gross Margin QoQ = 77.35% (prev 76.55%)
Tobins Q-Ratio = 2.77 (Enterprise Value 19.6b / Total Assets 7.10b)
Interest Expense / Debt = 0.55% (Interest Expense 11.1m / Debt 2.02b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -25.7m (EBIT -32.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.84 (Total Current Assets 4.65b / Total Current Liabilities 2.53b)
Debt / Equity = 0.85 (Debt 2.02b / totalStockholderEquity, last quarter 2.37b)
Debt / EBITDA = -21.95 (Net Debt -1.52b / EBITDA 69.1m)
Debt / FCF = -2.28 (Net Debt -1.52b / FCF TTM 666.0m)
Total Stockholder Equity = 2.09b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.24% (Net Income -77.4m / Total Assets 7.10b)
RoE = -3.71% (Net Income TTM -77.4m / Total Stockholder Equity 2.09b)
RoCE = -0.86% (EBIT -32.5m / Capital Employed (Equity 2.09b + L.T.Debt 1.70b))
RoIC = -0.57% (negative operating profit) (NOPAT -25.7m / Invested Capital 4.51b)
WACC = 9.55% (E(21.1b)/V(23.2b) * Re(10.42%) + D(2.02b)/V(23.2b) * Rd(0.55%) * (1-Tc(0.21)))
Discount Rate = 10.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 3.44%
[DCF] Terminal Value 74.19% ; FCFF base≈588.3m ; Y1≈674.4m ; Y5≈992.5m
[DCF] Fair Price = 85.63 (EV 12.3b - Net Debt -1.52b = Equity 13.8b / Shares 161.7m; r=9.55% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 43.23 | EPS CAGR: 7.57% | SUE: 1.08 | # QB: 2
Revenue Correlation: 99.70 | Revenue CAGR: 26.76% | SUE: 2.94 | # QB: 12
EPS next Quarter (2026-10-31): EPS=1.08 | Chg30d=+1.07% | Revisions=+33% | Analysts=38
EPS current Year (2026-07-31): EPS=4.13 | Chg30d=+2.64% | Revisions=+88% | GrowthEPS=+25.8% | GrowthRev=+24.6%
EPS next Year (2027-07-31): EPS=4.60 | Chg30d=+0.23% | Revisions=+12% | GrowthEPS=+11.4% | GrowthRev=+17.0%
[Analyst] Revisions Ratio: +88%