(ZS) Zscaler - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 25.895m USD | Total Return: -30.8% in 12m
Cloud Security, Data Protection, Threat Prevention, Network Access
Total Rating 42
Safety 57
Buy Signal 0.36
Software - Infrastructure
Industry Rotation: +18.2
Industry Rotation: +18.2
Market Cap:
25.9B
Avg Turnover: 365M
Avg Turnover: 365M
Risk 3d forecast
Volatility68.8%
VaR 5th Pctl11.7%
VaR vs Median3.47%
Reward TTM
Sharpe Ratio-0.62
Rel. Str. IBD9.3
Rel. Str. Peer Group31.1
Character TTM
Beta1.364
Beta Downside1.510
Hurst Exponent0.434
Drawdowns 3y
Max DD64.89%
CAGR/Max DD0.17
CAGR/Mean DD0.55
EPS (Earnings per Share)
EPS CAGR: 60.83%
EPS Trend: 33.0%
EPS Trend: 33.0%
Last SUE: 1.64
Qual. Beats: 1
Qual. Beats: 1
Revenue
Rev. CAGR: 32.15%
Rev. Trend: 98.8%
Rev. Trend: 98.8%
Last SUE: 3.33
Qual. Beats: 11
Qual. Beats: 11
Warnings
Interest Coverage Ratio 0.0 is critical
Extended 1w
Tailwinds
Tailwind
Description: ZS Zscaler
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
Piotroski VR‑10 (Strict)
5.0
| Net Income: -67.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 0.09 > 1.0 |
| NWC/Revenue: 70.30% < 20% (prev 25.45%; Δ 44.85% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.11b > Net Income -67.6m |
| Net Debt (-1.65b) to EBITDA (137.7m): -11.97 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (159.7m) vs 12m ago 3.91% < -2% |
| Gross Margin: 76.54% > 18% (prev 0.78%; Δ 7.58k% > 0.5%) |
| Asset Turnover: 51.04% > 50% (prev 48.38%; Δ 2.66% > 0%) |
| Interest Coverage Ratio: 0.04 > 6 (EBITDA TTM 137.7m / Interest Expense TTM 10.4m) |
Altman Z''
1.17
| A: 0.31 (Total Current Assets 4.45b - Total Current Liabilities 2.34b) / Total Assets 6.75b |
| B: -0.18 (Retained Earnings -1.24b / Total Assets 6.75b) |
| C: 0.00 (EBIT TTM 396k / Avg Total Assets 5.88b) |
| D: -0.27 (Book Value of Equity -1.22b / Total Liabilities 4.56b) |
| Altman-Z'' Score: 1.17 = BB |
Beneish M
-2.87
| DSRI: 0.87 (Receivables 551.8m/514.3m, Revenue 3.00b/2.42b) |
| GMI: 1.01 (GM 76.54% / 77.68%) |
| AQI: 1.44 (AQ_t 0.24 / AQ_t-1 0.17) |
| SGI: 1.24 (Revenue 3.00b / 2.42b) |
| TATA: -0.17 (NI -67.6m - CFO 1.11b) / TA 6.75b) |
| Beneish M-Score: -2.87 (Cap -4..+1) = A |
What is the price of ZS shares?
As of May 19, 2026, the stock is trading at USD 174.69 with a total of 6,138,744 shares traded.
Over the past week, the price has changed by +17.34%, over one month by +29.59%, over three months by +1.49% and over the past year by -30.84%.
Over the past week, the price has changed by +17.34%, over one month by +29.59%, over three months by +1.49% and over the past year by -30.84%.
Is ZS a buy, sell or hold?
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
What are the forecasts/targets for the ZS price?
| Analysts Target Price | 224.1 | 28.3% |
Zscaler (ZS) - Fundamental Data Overview
as of 18 May 2026
P/E Forward = 32.6797 P/S = 8.6286
P/B = 11.1392
P/EG = 1.6358
Revenue TTM = 3.00b USD
EBIT TTM = 396k USD
EBITDA TTM = 137.7m USD
Long Term Debt = 1.70b USD (from longTermDebt, last quarter)
Short Term Debt = 67.6m USD (from shortTermDebt, last quarter)
Debt = 1.86b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.65b USD (recalculated: Debt 1.86b - CCE 3.51b)
Enterprise Value = 24.25b USD (25.90b + Debt 1.86b - CCE 3.51b)
Interest Coverage Ratio = 0.04 (Ebit TTM 396k / Interest Expense TTM 10.4m)
EV/FCF = 25.69x (Enterprise Value 24.25b / FCF TTM 943.7m)
FCF Yield = 3.89% (FCF TTM 943.7m / Enterprise Value 24.25b)
FCF Margin = 31.45% (FCF TTM 943.7m / Revenue TTM 3.00b)
Net Margin = -2.25% (Net Income TTM -67.6m / Revenue TTM 3.00b)
Gross Margin = 76.54% ((Revenue TTM 3.00b - Cost of Revenue TTM 704.1m) / Revenue TTM)
Gross Margin QoQ = 76.55% (prev 76.56%)
Tobins Q-Ratio = 3.59 (Enterprise Value 24.25b / Total Assets 6.75b)
Interest Expense / Debt = 0.23% (Interest Expense 4.22m / Debt 1.86b)
Taxrate = 21.0% (US default 21%)
NOPAT = 313k (EBIT 396k * (1 - 21.00%))
Current Ratio = 1.90 (Total Current Assets 4.45b / Total Current Liabilities 2.34b)
Debt / Equity = 0.85 (Debt 1.86b / totalStockholderEquity, last quarter 2.20b)
Debt / EBITDA = -11.97 (Net Debt -1.65b / EBITDA 137.7m)
Debt / FCF = -1.75 (Net Debt -1.65b / FCF TTM 943.7m)
Total Stockholder Equity = 1.95b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.15% (Net Income -67.6m / Total Assets 6.75b)
RoE = -3.48% (Net Income TTM -67.6m / Total Stockholder Equity 1.95b)
RoCE = 0.01% (EBIT 396k / Capital Employed (Equity 1.95b + L.T.Debt 1.70b))
RoIC = 0.01% (NOPAT 313k / Invested Capital 3.51b)
WACC = 10.07% (E(25.90b)/V(27.76b) * Re(10.78%) + D(1.86b)/V(27.76b) * Rd(0.23%) * (1-Tc(0.21)))
Discount Rate = 10.78% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 3.55%
[DCF] Terminal Value 75.15% ; FCFF base≈844.1m ; Y1≈1.04b ; Y5≈1.78b
[DCF] Fair Price = 142.9 (EV 21.33b - Net Debt -1.65b = Equity 22.98b / Shares 160.8m; r=10.07% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 33.00 | EPS CAGR: 60.83% | SUE: 1.64 | # QB: 1
Revenue Correlation: 98.82 | Revenue CAGR: 32.15% | SUE: 3.33 | # QB: 11
EPS current Year (2026-07-31): EPS=4.02 | Chg30d=-0.14% | Revisions=-20% | GrowthEPS=+22.6% | GrowthRev=+24.1%
EPS next Year (2027-07-31): EPS=4.59 | Chg30d=-0.02% | Revisions=+0% | GrowthEPS=+14.1% | GrowthRev=+19.8%
[Analyst] Revisions Ratio: -20%