ZS Stock Analysis: Zscaler | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 32.172m USD | 12M Return: -27.9% | US98980G1022 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 581M
EPS Trend: 1.7%
Qual. Beats: 2
Rev. Trend: 99.9%
Qual. Beats: 13
Warnings
Tailwinds
Seasonality 8.4 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: -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 September 23, 2026, the stock is trading at USD 210.18 with a total of 2,901,575 shares traded. Over the past week, the price has changed by +8.40%, over one month by +19.38%, over three months by +69.42% and over the past year by -27.91%.
Current recommended Stop Loss: 197.90 (which is 5.8% or 1.2 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 | 208.9 | -0.6% |
P/E Forward = 40.4858
P/S = 9.5965
P/B = 12.3923
P/EG = 2.0233
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 = 30.7b USD (32.2b + Debt 2.02b - CCE 3.47b)
Interest Coverage Ratio = -0.46 (Ebit TTM -5.46m / Interest Expense TTM 11.8m)
EV/FCF = 50.89x (Enterprise Value 30.7b / FCF TTM 603.5m)
FCF Yield = 1.96% (FCF TTM 603.5m / Enterprise Value 30.7b)
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 = 3.90 (Enterprise Value 30.7b / 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 = 8.90% (E(32.2b)/V(34.2b) * Re(9.43%) + D(2.02b)/V(34.2b) * Rd(0.59%) * (1-Tc(0.21)))
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 93.42 | Cagr: 1.75%
[DCF] Terminal Value 76.20% ; FCFF base≈560.2m ; Y1≈642.2m ; Y5≈945.1m
[DCF] Fair Price = 88.46 (EV 13.0b - Net Debt -1.46b = Equity 14.4b / Shares 163.1m; r=8.90% [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=+7.77% | Revisions=+91% | Analysts=39
EPS next Quarter (2027-01-31): EPS=1.18 | Chg30d=+6.47% | Revisions=+78% | Analysts=39
EPS current Year (2027-07-31): EPS=4.91 | Chg30d=+6.77% | Revisions=+92% | GrowthEPS=+16.6% | GrowthRev=+17.3%
EPS next Year (2028-07-31): EPS=5.60 | Chg30d=+3.06% | Revisions=+68% | GrowthEPS=+14.1% | GrowthRev=+16.4%
[Analyst] Revisions Ratio: +89% (up=113, down=5)