NasdaqGS:ZS

Stock Analysis Report

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Executive Summary

Zscaler, Inc. operates as a cloud security company worldwide. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Zscaler's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ZS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

ZS

0.1%

US Software

0.7%

US Market


1 Year Return

194.5%

ZS

45.9%

US Software

22.2%

US Market

Return vs Industry: ZS exceeded the US Software industry which returned 46.9% over the past year.

Return vs Market: ZS exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

ZSIndustryMarket
7 Day-0.1%0.1%0.7%
30 Day9.2%10.0%11.8%
90 Day2.3%2.4%8.6%
1 Year194.5%194.5%46.8%45.9%25.0%22.2%
3 Yearn/a144.4%136.6%49.4%39.5%
5 Yearn/a235.2%216.9%100.2%78.1%

Long-Term Price Volatility Vs. Market

How volatile is Zscaler's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zscaler undervalued compared to its fair value and its price relative to the market?

40.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ZS ($146.79) is trading above our estimate of fair value ($116.03)

Significantly Below Fair Value: ZS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZS is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: ZS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ZS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ZS is overvalued based on its PB Ratio (40.2x) compared to the US Software industry average (8x).


Next Steps

Future Growth

How is Zscaler forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ZS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ZS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ZS's revenue (20.4% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: ZS's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZS's Return on Equity is forecast to be high in 3 years time (23.7%)


Next Steps

Past Performance

How has Zscaler performed over the past 5 years?

-21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZS is currently unprofitable.

Growing Profit Margin: ZS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZS is unprofitable, and losses have increased over the past 5 years at a rate of 21.4% per year.

Accelerating Growth: Unable to compare ZS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ZS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (8%).


Return on Equity

High ROE: ZS has a negative Return on Equity (-23.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Zscaler's financial position?


Financial Position Analysis

Short Term Liabilities: ZS's short term assets ($1.6B) exceed its short term liabilities ($423.9M).

Long Term Liabilities: ZS's short term assets ($1.6B) exceed its long term liabilities ($924.7M).


Debt to Equity History and Analysis

Debt Level: ZS's debt to equity ratio (177.7%) is considered high.

Reducing Debt: Insufficient data to determine if ZS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ZS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ZS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 61.7% per year.


Next Steps

Dividend

What is Zscaler current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ZS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Jay Chaudhry (61 yo)

13.25yrs

Tenure

US$6,620,660

Compensation

Mr. Jagtar S. Chaudhry, also known as Jay, is the Co-Founder of Zscaler, Inc. and has been its Chief Executive Officer, President and Chairman of the Board since September 2007 and serves as its Director s...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD6.62M) is below average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Jay's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jagtar Chaudhry
Co-Founder13.25yrsUS$6.62m42.23%
$ 8.3b
Remo Canessa
Chief Financial Officer3.83yrsUS$8.04m0.19%
$ 37.4m
Amit Sinha
President of Research & Development3.58yrsUS$10.58m0.37%
$ 73.6m
Robert Schlossman
Chief Legal Officer & Secretary4.83yrsUS$4.94m0.021%
$ 4.1m
Dali Rajic
President of Go-to-Market & Chief Revenue Officer1.25yrsUS$23.81m0.055%
$ 10.7m
K. Kailash
Founder & Chief Architect13.92yrsno datano data
Patrick Foxhoven
Chief Information Officer & Executive VP of Emerging Technologiesno datano datano data
Hyodong Choi
Senior Vice President of Investor Relationsno datano datano data
Tom Stilwell
Vice President of Global Communicationsno datano datano data
Chris Kozup
Chief Marketing Officer0.083yrno datano data
Gregory Pappas
Chief People Officerno datano datano data
Manoj Apte
Senior VP & Chief Strategy Officer4.25yrsUS$6.53m0.16%
$ 32.1m

4.0yrs

Average Tenure

52yo

Average Age

Experienced Management: ZS's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jagtar Chaudhry
Co-Founder13.25yrsUS$6.62m42.23%
$ 8.3b
Amit Sinha
President of Research & Development3.58yrsUS$10.58m0.37%
$ 73.6m
Charles Giancarlo
Independent Director4.08yrsUS$271.69k0.27%
$ 53.7m
Karen Blasing
Independent Director3.92yrsUS$284.19k0.020%
$ 3.8m
Scott Darling
Independent Director4.08yrsUS$267.64k0.052%
$ 10.3m
David Schneider
Independent Director0.92yrUS$821.18k0.0047%
$ 935.5k
Andrew Brown
Independent Director5.17yrsUS$279.19k0.023%
$ 4.6m

4.1yrs

Average Tenure

61yo

Average Age

Experienced Board: ZS's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ZS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Top Shareholders

Company Information

Zscaler, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zscaler, Inc.
  • Ticker: ZS
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$19.695b
  • Shares outstanding: 134.17m
  • Website: https://www.zscaler.com

Number of Employees


Location

  • Zscaler, Inc.
  • 120 Holger Way
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2018
0XVULSE (London Stock Exchange)YesCommon StockGBUSDMar 2018
ZS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2018

Biography

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, internet of things, and device secu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:18
End of Day Share Price2020/12/02 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.