ZS Stock Analysis: Zscaler | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 22.251m USD | 12M Return: -53.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 506M
EPS Trend: -28.7%
Qual. Beats: 0
Rev. Trend: 99.7%
Qual. Beats: 12
Warnings
Tailwinds
Seasonality 8.3 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 (NASDAQ: ZS) is a cloud-native security platform provider headquartered in San Jose, California, founded in 2007 and taken public in March 2018. Its product portfolio is built around a Zero Trust security framework and includes Zscaler Internet Access (ZIA) for secure web traffic, Zscaler Private Access (ZPA) for application access, a Zero Trust Firewall, data security and SaaS protection tools (CASB, DSPM), Zero Trust SD-WAN/branch solutions, and security operations offerings such as Risk360 and managed detection and response. The company serves a broad range of industries including automotive, financial services, healthcare, public sector, and telecommunications.
Operating within the Information Technology sector (GICS Sub Industry: Systems Software), Zscaler generates revenue primarily through a subscription-based SaaS business model, delivering its security services from a globally distributed cloud platform rather than via on-premises hardware, which differentiates it from traditional appliance-based security vendors.
- Customer spend optimization pressures net retention rate
- Free cash flow margin expansion drives operating leverage
- SASE competition intensifies from Palo Alto Networks and Cloudflare
| 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 (121.8m): -12.45 < 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 July 04, 2026, the stock is trading at USD 147.33 with a total of 2,596,200 shares traded. Over the past week, the price has changed by +19.01%, over one month by +9.65%, over three months by +5.60% and over the past year by -53.19%.
Current recommended Stop Loss: 136.40 (which is 7.4% or 1.3 ATR below the current price).
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 | 192.6 | 30.7% |
P/E Forward = 28.8184
P/S = 7.0114
P/B = 9.0373
P/EG = 1.4407
Revenue TTM = 3.17b USD
EBIT TTM = -32.5m USD
EBITDA TTM = 121.8m 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 = 20.7b USD (22.3b + Debt 2.02b - CCE 3.54b)
Interest Coverage Ratio = -2.93 (Ebit TTM -32.5m / Interest Expense TTM 11.1m)
EV/FCF = 31.13x (Enterprise Value 20.7b / FCF TTM 666.0m)
FCF Yield = 3.21% (FCF TTM 666.0m / Enterprise Value 20.7b)
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 = 2.92 (Enterprise Value 20.7b / 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 = -12.45 (Net Debt -1.52b / EBITDA 121.8m)
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 = 9.76% (E(22.3b)/V(24.3b) * Re(10.61%) + D(2.02b)/V(24.3b) * Rd(0.55%) * (1-Tc(0.21)))
Discount Rate = 10.61% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 3.44%
[DCF] Terminal Value 73.54% ; FCFF base≈588.3m ; Y1≈674.4m ; Y5≈992.5m
[DCF] Fair Price = 83.32 (EV 12.0b - Net Debt -1.52b = Equity 13.5b / Shares 161.7m; r=9.76% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -28.72 | EPS CAGR: -6.32% | SUE: 0.82 | # QB: 0
Revenue Correlation: 99.70 | Revenue CAGR: 26.76% | SUE: 2.94 | # QB: 12
EPS current Quarter (2026-10-31): EPS=1.08 | Chg30d=+1.07% | Revisions=+27% | Analysts=38
EPS current Year (2026-07-31): EPS=4.13 | Chg30d=-0.05% | Revisions=+90% | GrowthEPS=+25.9% | GrowthRev=+24.6%
EPS next Year (2027-07-31): EPS=4.60 | Chg30d=-0.22% | Revisions=+15% | GrowthEPS=+11.4% | GrowthRev=+17.0%
[Analyst] Revisions Ratio: +47% (up=92, down=32)