ZS Stock Analysis: Zscaler | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 32.057m USD | 12M Return: -25.9% | US98980G1022 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 601M
EPS Trend: 1.7%
Qual. Beats: 2
Rev. Trend: 99.9%
Qual. Beats: 13
Warnings
Tailwinds
Seasonality 8.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Zscaler, Inc. is a cloud security company headquartered in San Jose, California, offering a broad suite of cybersecurity products built around a zero trust architecture. Its core platform, Zero Trust SASE, integrates solutions such as Zscaler Internet Access, Zscaler Private Access, Zero Trust Browser, and Zero Trust Branch/Cloud to securely connect users, devices, and workloads to cloud and AI services. The company is classified within the Systems Software sub-industry of the Information Technology sector, a segment that includes major providers of enterprise security and infrastructure software.
In addition to network and access security, Zscaler provides data protection services (including AI-powered data classification, DLP, and SaaS security posture management), security for AI workloads, and an agentic AI-driven security operations platform with exposure management, deception, managed detection and response, and threat hunting. The company serves a diverse global customer base across industries such as automotive, financial services, healthcare, manufacturing, public sector, and telecommunications. Zscaler was incorporated in 2007, originally as SafeChannel, Inc., and has been publicly traded on NASDAQ since its IPO in March 2018.
- Zero Trust SASE adoption fuels double-digit revenue growth
- AI security products expand total addressable market
- Federal government wins accelerate amid rising cyber threats
| Net Income: -63.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -0.04 > 1.0 |
| NWC/Revenue: 61.74% < 20% (prev 92.20%; Δ -30.46% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.13b > Net Income -63.2m |
| Net Debt (-1.46b) to EBITDA (186.6m): -7.82 < 3 |
| Current Ratio: 1.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (160.2m) vs 12m ago 2.38% < -2% |
| Gross Margin: 76.80% > 18% (prev 76.85%; Δ -0.05% > 0.5%) |
| Asset Turnover: 46.93% > 50% (prev 41.64%; Δ 5.29% > 0%) |
| Interest Coverage Ratio: -0.46 > 6 (EBIT TTM -5.46m / Interest Expense TTM 11.8m) |
| A: 0.26 (Total Current Assets 5.03b - Total Current Liabilities 2.96b) / Total Assets 7.87b |
| B: -0.16 (Retained Earnings -1.25b / Total Assets 7.87b) |
| C: -0.00 (EBIT TTM -5.46m / Avg Total Assets 7.14b) |
| D: 0.49 (Book Value of Equity 2.60b / Total Liabilities 5.27b) |
| Altman-Z'' = 1.72 = BBB |
| DSRI: 0.92 (Receivables 1.15b/992.2m, Revenue 3.35b/2.67b) |
| GMI: 1.00 (GM 76.85% / 76.80%) |
| AQI: 1.78 (AQ_t 0.25 / AQ_t-1 0.14) |
| SGI: 1.25 (Revenue 3.35b / 2.67b) |
| TATA: -0.15 (NI -63.2m - CFO 1.13b) / TA 7.87b) |
| Beneish M = -2.46 (Cap -4..+1) = BBB |
As of October 12, 2026, the stock is trading at USD 233.73 with a total of 3,787,810 shares traded. Over the past week, the price has changed by +18.89%, over one month by +40.72%, over three months by +58.87% and over the past year by -25.85%.
Current recommended Stop Loss: 222.50 (which is 4.8% or 1.2 ATR below the current price).
Zscaler has received a consensus analysts rating of 4.41. Therefore, it is recommended to buy ZS.
- StrongBuy: 29
- Buy: 7
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 210.1 | -10.1% |
P/E Forward = 43.8596
P/S = 9.5619
P/B = 13.4579
P/EG = 2.1972
Revenue TTM = 3.35b USD
EBIT TTM = -5.46m USD
EBITDA TTM = 186.6m USD
Long Term Debt = 1.70b USD (from longTermDebt, last quarter)
Short Term Debt = 64.9m USD (from shortTermDebt, last quarter)
Debt = 2.02b USD (from shortLongTermDebtTotal, last quarter) + Leases 159.5m
Net Debt = -1.46b USD (calculated: Debt 2.02b - CCE 3.47b)
Enterprise Value = 30.6b USD (32.1b + Debt 2.02b - CCE 3.47b)
Interest Coverage Ratio = -0.46 (Ebit TTM -5.46m / Interest Expense TTM 11.8m)
EV/FCF = 50.70x (Enterprise Value 30.6b / FCF TTM 603.5m)
FCF Yield = 1.97% (FCF TTM 603.5m / Enterprise Value 30.6b)
FCF Margin = 18.00% (FCF TTM 603.5m / Revenue TTM 3.35b)
Net Margin = -1.88% (Net Income TTM -63.2m / Revenue TTM 3.35b)
Gross Margin = 76.80% ((Revenue TTM 3.35b - Cost of Revenue TTM 777.6m) / Revenue TTM)
Gross Margin QoQ = 76.73% (prev 77.35%)
Tobins Q-Ratio = 3.89 (Enterprise Value 30.6b / Total Assets 7.87b)
Interest Expense / Debt = 0.59% (Interest Expense 11.8m / Debt 2.02b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -4.31m (EBIT -5.46m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.67 (Total Current Assets 5.03b / Total Current Liabilities 3.01b)
Debt / Equity = 0.78 (Debt 2.02b / totalStockholderEquity, last quarter 2.60b)
Debt / EBITDA = -7.82 (Net Debt -1.46b / EBITDA 186.6m)
Debt / FCF = -2.42 (Net Debt -1.46b / FCF TTM 603.5m)
Total Stockholder Equity = 2.29b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.88% (Net Income -63.2m / Total Assets 7.87b)
RoE = -2.76% (Net Income TTM -63.2m / Total Stockholder Equity 2.29b)
RoCE = -0.14% (EBIT -5.46m / Capital Employed (Equity 2.29b + L.T.Debt 1.70b))
RoIC = -0.09% (negative operating profit) (NOPAT -4.31m / Invested Capital 4.80b)
WACC = 8.97% (E(32.1b)/V(34.1b) * Re(9.50%) + D(2.02b)/V(34.1b) * Rd(0.59%) * (1-Tc(0.21)))
Discount Rate = 9.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 93.42 | Cagr: 1.75%
[DCF] Terminal Value 76.00% ; FCFF base≈560.2m ; Y1≈642.2m ; Y5≈945.1m
[DCF] Fair Price = 87.65 (EV 12.8b - Net Debt -1.46b = Equity 14.3b / Shares 163.1m; r=8.97% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 1.72 | EPS CAGR: 0.33% | SUE: 1.28 | # QB: 2
Revenue Correlation: 99.86 | Revenue CAGR: 25.63% | SUE: 4.0 | # QB: 13
EPS current Quarter (2026-10-31): EPS=1.16 | Chg30d=+7.74% | Revisions=+92% | Analysts=40
EPS next Quarter (2027-01-31): EPS=1.18 | Chg30d=+6.46% | Revisions=+78% | Analysts=40
EPS current Year (2027-07-31): EPS=4.91 | Chg30d=+6.75% | Revisions=+92% | GrowthEPS=+16.6% | GrowthRev=+17.3%
EPS next Year (2028-07-31): EPS=5.60 | Chg30d=+3.38% | Revisions=+68% | GrowthEPS=+14.1% | GrowthRev=+16.4%
[Analyst] Revisions Ratio: +90% (up=118, down=5)