(ZS) Zscaler - Ratings and Ratios
Cloud Security, Internet Access, Private Access, Digital Experience
ZS EPS (Earnings per Share)
ZS Revenue
Description: ZS Zscaler
Zscaler Inc (NASDAQ:ZS) is a cloud security company that provides a range of security solutions, including secure access to external applications, private access to internal applications, and digital experience monitoring. The companys platform is designed to provide a zero-trust security model, which assumes that all users and devices are potentially malicious and verifies their identity and access rights accordingly.
Key performance indicators (KPIs) for Zscaler include revenue growth, customer acquisition, and retention rates. As a cloud security company, Zscalers revenue is likely driven by subscription-based models, and its customer base includes a range of industries, such as financial services, healthcare, and technology. The companys ability to expand its customer base and increase revenue from existing customers will be critical to its long-term success.
From a competitive perspective, Zscaler operates in a rapidly growing market, with increasing demand for cloud security solutions. The companys zero-trust security model is well-positioned to capitalize on this trend, and its platform modules, such as Zscaler Central Authority and Zscaler Enforcement Node, provide a robust and scalable security solution. Key competitors in the cloud security space include companies like Palo Alto Networks, Check Point Software, and Cisco Systems.
In terms of financial performance, Zscalers market capitalization is approximately $49.3 billion, with a forward price-to-earnings ratio of 85.47. The companys return on equity (ROE) is currently negative, indicating that it is investing heavily in its business. As a growth stock, Zscalers financial performance will be closely watched by investors, with key metrics including revenue growth, gross margin expansion, and operating expense management.
ZS Stock Overview
| Market Cap in USD | 42,692m |
| Sub-Industry | Systems Software |
| IPO / Inception | 2018-03-16 |
ZS Stock Ratings
| Growth Rating | 63.9% |
| Fundamental | 54.5% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 39.4% |
| Analyst Rating | 4.17 of 5 |
ZS Dividends
Currently no dividends paidZS Growth Ratios
| Growth Correlation 3m | -82.7% |
| Growth Correlation 12m | 83.9% |
| Growth Correlation 5y | 11.1% |
| CAGR 5y | 18.85% |
| CAGR/Max DD 3y | 0.36 |
| CAGR/Mean DD 3y | 0.87 |
| Sharpe Ratio 12m | 2.43 |
| Alpha | 67.56 |
| Beta | 0.579 |
| Volatility | 41.33% |
| Current Volume | 1340.9k |
| Average Volume 20d | 1340.9k |
| Stop Loss | 273.1 (-3.6%) |
| Signal | -0.36 |
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) 54.53
| 1. Piotroski 3.50pt = -1.50 |
| 2. FCF Yield 1.86% = 0.93 |
| 3. FCF Margin 28.82% = 7.21 |
| 4. Debt/Equity 1.25 = 1.77 |
| 5. Debt/Ebitda 19.96 = -2.50 |
| 6. ROIC - WACC -7.52% = -9.40 |
| 7. RoE -2.50% = -0.42 |
| 8. Rev. Trend 99.26% = 4.96 |
| 9. Rev. CAGR 29.20% = 2.50 |
| 10. EPS Trend 38.69% = 0.97 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of ZS shares?
Over the past week, the price has changed by +0.56%, over one month by +4.50%, over three months by -7.16% and over the past year by +64.86%.
Is Zscaler a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ZS is around 287.80 USD . This means that ZS is currently overvalued and has a potential downside of 1.63%.
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 | 324.7 | 14.6% |
| Analysts Target Price | 324.7 | 14.6% |
| ValueRay Target Price | 318.7 | 12.6% |
Last update: 2025-09-07 02:02
ZS Fundamental Data Overview
CCE Cash And Equivalents = 3.57b USD (Cash And Short Term Investments, last quarter)
P/E Forward = 72.9927
P/S = 15.9708
P/B = 23.2124
P/EG = 3.6546
Beta = 1.049
Revenue TTM = 2.67b USD
EBIT TTM = 8.05m USD
EBITDA TTM = 112.4m USD
Long Term Debt = 2.19b USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 52.5m USD (from shortTermDebt, last quarter)
Debt = 2.24b USD (Calculated: Short Term 52.5m + Long Term 2.19b)
Net Debt = -592.4m USD (from netDebt column, last quarter)
Enterprise Value = 41.36b USD (42.69b + Debt 2.24b - CCE 3.57b)
Interest Coverage Ratio = 0.86 (Ebit TTM 8.05m / Interest Expense TTM 9.32m)
FCF Yield = 1.86% (FCF TTM 770.4m / Enterprise Value 41.36b)
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)
Tobins Q-Ratio = -35.01 (set to none) (Enterprise Value 41.36b / Book Value Of Equity -1.18b)
Interest Expense / Debt = 0.09% (Interest Expense 2.07m / Debt 2.24b)
Taxrate = 21.0% (US default)
NOPAT = 6.36m (EBIT 8.05m * (1 - 21.00%))
Current Ratio = 2.01 (Total Current Assets 4.89b / Total Current Liabilities 2.43b)
Debt / Equity = 1.25 (Debt 2.24b / last Quarter total Stockholder Equity 1.80b)
Debt / EBITDA = 19.96 (Net Debt -592.4m / EBITDA 112.4m)
Debt / FCF = 2.91 (Debt 2.24b / FCF TTM 770.4m)
Total Stockholder Equity = 1.66b (last 4 quarters mean)
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 = 0.21% (Ebit 8.05m / (Equity 1.66b + L.T.Debt 2.19b))
RoIC = 0.23% (NOPAT 6.36m / Invested Capital 2.76b)
WACC = 7.75% (E(42.69b)/V(44.94b) * Re(8.15%)) + (D(2.24b)/V(44.94b) * Rd(0.09%) * (1-Tc(0.21)))
Shares Correlation 3-Years: 90.67 | Cagr: 0.86%
Discount Rate = 8.15% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 81.10% ; FCFE base≈696.2m ; Y1≈858.9m ; Y5≈1.47b
Fair Price DCF = 156.9 (DCF Value 24.43b / Shares Outstanding 155.7m; 5y FCF grow 25.0% → 3.0% )
Revenue Correlation: 99.26 | Revenue CAGR: 29.20%
Rev Growth-of-Growth: -8.06
EPS Correlation: 38.69 | EPS CAGR: 0.0%
EPS Growth-of-Growth: -62.61
Additional Sources for ZS Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle