(ZS) Zscaler - Ratings and Ratios
Cloud Security, Zero Trust, Threat Protection, Data Security, Digital Experience
ZS EPS (Earnings per Share)
ZS Revenue
Description: ZS Zscaler
Zscaler, Inc. (NASDAQ:ZS) is a pure-play cloud security vendor that delivers a portfolio of Zero Trust-based solutions spanning network, data, application, and endpoint protection. Its flagship offerings include Zscaler Internet Access (ZIA) for secure web traffic, Zscaler Private Access (ZPA) for zero-trust application connectivity, a Zero Trust Firewall, and a suite of data-security tools such as web/email DLP, CASB, and AI-driven SaaS protection. The company also bundles Zero Trust Branch services (SD-WAN, IoT/OT segmentation, privileged remote access) and a Digital Experience layer that quantifies end-user performance across corporate apps.
Beyond the technology stack, Zscaler serves a broad cross-section of industries-automotive, financial services, healthcare, technology, and the public sector-leveraging its cloud-native architecture to replace legacy on-prem security appliances. The firm’s revenue model is subscription-based, with FY 2024 total revenue of approximately $2.2 billion, representing a 15 % year-over-year increase and an annual recurring revenue (ARR) run-rate exceeding $4.5 billion. Gross margins have remained high (≈78 %) due to the scalability of its multi-tenant cloud platform, though the company continues to post net losses as it invests heavily in sales and R&D.
Key macro drivers for Zscaler’s market include the accelerating shift to remote and hybrid work, the rapid adoption of public-cloud services, and the industry-wide mandate for Zero Trust architectures-trends that the IDC forecasts will push global cloud security spending to a CAGR of roughly 23 % through 2027. Competitive pressures from Palo Alto Networks, Cisco, and emerging pure-play cloud security startups could compress pricing, making customer churn and expansion rates critical levers for future growth.
Given the high-growth backdrop and Zscaler’s strong platform stickiness, analysts should monitor ARR churn, net dollar retention, and the pace of enterprise Zero Trust adoption as primary risk gauges. For a deeper, data-driven valuation framework, you may find the ValueRay platform’s free analyst toolkit worth exploring.
ZS Stock Overview
| Market Cap in USD | 49,554m |
| Sub-Industry | Systems Software |
| IPO / Inception | 2018-03-16 |
ZS Stock Ratings
| Growth Rating | 70.2% |
| Fundamental | 62.8% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 33.4% |
| Analyst Rating | 4.17 of 5 |
ZS Dividends
Currently no dividends paidZS Growth Ratios
| Growth Correlation 3m | 51.1% |
| Growth Correlation 12m | 82% |
| Growth Correlation 5y | 11.6% |
| CAGR 5y | 26.95% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.60 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.60 |
| Sharpe Ratio 12m | 2.41 |
| Alpha | 35.75 |
| Beta | 1.062 |
| Volatility | 49.84% |
| Current Volume | 1054.9k |
| Average Volume 20d | 1297.8k |
| Stop Loss | 291.1 (-3.7%) |
| Signal | 0.22 |
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income (-41.5m TTM) > 0 and > 6% of Revenue (6% = 160.4m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA -0.43pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 92.20% (prev 13.09%; Δ 79.11pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.15 (>3.0%) and CFO 976.7m > Net Income -41.5m (YES >=105%, WARN >=100%) |
| Net Debt (-592.4m) to EBITDA (112.4m) ratio: -5.27 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.01 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (156.5m) change vs 12m ago 3.30% (target <= -2.0% for YES) |
| Gross Margin 76.85% (prev 77.87%; Δ -1.02pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 48.06% (prev 46.07%; Δ 1.98pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 0.86 (EBITDA TTM 112.4m / Interest Expense TTM 9.32m) >= 6 (WARN >= 3) |
Altman Z'' 1.66
| (A) 0.38 = (Total Current Assets 4.89b - Total Current Liabilities 2.43b) / Total Assets 6.42b |
| (B) -0.19 = Retained Earnings (Balance) -1.19b / Total Assets 6.42b |
| (C) 0.00 = EBIT TTM 8.05m / Avg Total Assets 5.56b |
| (D) -0.26 = Book Value of Equity -1.18b / Total Liabilities 4.62b |
| Total Rating: 1.66 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 62.83
| 1. Piotroski 3.50pt = -1.50 |
| 2. FCF Yield 1.61% = 0.81 |
| 3. FCF Margin 28.82% = 7.21 |
| 4. Debt/Equity 1.00 = 2.02 |
| 5. Debt/Ebitda -5.27 = 2.50 |
| 6. ROIC - WACC (= -7.61)% = -9.51 |
| 7. RoE -2.50% = -0.42 |
| 8. Rev. Trend 99.26% = 7.44 |
| 9. EPS Trend 85.46% = 4.27 |
What is the price of ZS shares?
Over the past week, the price has changed by -3.68%, over one month by +5.84%, over three months by +4.66% and over the past year by +54.92%.
Is Zscaler a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ZS is around 298.83 USD . This means that ZS is currently overvalued and has a potential downside of -1.16%.
Is ZS a buy, sell or hold?
- Strong Buy: 24
- Buy: 9
- Hold: 11
- Sell: 1
- Strong Sell: 1
What are the forecasts/targets for the ZS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 325.4 | 7.6% |
| Analysts Target Price | 325.4 | 7.6% |
| ValueRay Target Price | 336.3 | 11.2% |
Last update: 2025-10-16 02:29
ZS Fundamental Data Overview
P/E Forward = 84.0336
P/S = 18.5381
P/B = 27.061
P/EG = 4.1905
Beta = 1.062
Revenue TTM = 2.67b USD
EBIT TTM = 8.05m USD
EBITDA TTM = 112.4m USD
Long Term Debt = 1.70b USD (from longTermDebt, last quarter)
Short Term Debt = 52.5m USD (from shortTermDebt, last quarter)
Debt = 1.80b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -592.4m USD (from netDebt column, last quarter)
Enterprise Value = 47.78b USD (49.55b + Debt 1.80b - CCE 3.57b)
Interest Coverage Ratio = 0.86 (Ebit TTM 8.05m / Interest Expense TTM 9.32m)
FCF Yield = 1.61% (FCF TTM 770.4m / Enterprise Value 47.78b)
FCF Margin = 28.82% (FCF TTM 770.4m / Revenue TTM 2.67b)
Net Margin = -1.55% (Net Income TTM -41.5m / Revenue TTM 2.67b)
Gross Margin = 76.85% ((Revenue TTM 2.67b - Cost of Revenue TTM 618.8m) / Revenue TTM)
Gross Margin QoQ = 76.05% (prev 77.01%)
Tobins Q-Ratio = 7.44 (Enterprise Value 47.78b / Total Assets 6.42b)
Interest Expense / Debt = 0.12% (Interest Expense 2.07m / Debt 1.80b)
Taxrate = -823.7% (out of range, set to none) (15.7m / -1.90m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 2.01 (Total Current Assets 4.89b / Total Current Liabilities 2.43b)
Debt / Equity = 1.00 (Debt 1.80b / totalStockholderEquity, last quarter 1.80b)
Debt / EBITDA = -5.27 (Net Debt -592.4m / EBITDA 112.4m)
Debt / FCF = -0.77 (Net Debt -592.4m / FCF TTM 770.4m)
Total Stockholder Equity = 1.66b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.65% (Net Income -41.5m / Total Assets 6.42b)
RoE = -2.50% (Net Income TTM -41.5m / Total Stockholder Equity 1.66b)
RoCE = 0.24% (EBIT 8.05m / Capital Employed (Equity 1.66b + L.T.Debt 1.70b))
RoIC = 1.93% (EBIT 8.05m / (Assets 6.42b - Curr.Liab 2.43b - Cash 3.57b))
WACC = 9.53% (E(49.55b)/V(51.35b) * Re(9.88%) + (debt cost/tax rate unavailable))
Discount Rate = 9.88% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.96%
[DCF Debug] Terminal Value 75.71% ; FCFE base≈696.2m ; Y1≈858.9m ; Y5≈1.47b
Fair Price DCF = 114.3 (DCF Value 18.09b / Shares Outstanding 158.3m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 85.46 | EPS CAGR: 50.34% | SUE: 1.77 | # QB: 14
Revenue Correlation: 99.26 | Revenue CAGR: 29.20% | SUE: 2.11 | # QB: 9
Additional Sources for ZS Stock
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Fund Manager Positions: Dataroma | Stockcircle