Zscaler, Inc. operates as a cloud security company worldwide. More Details
Adequate balance sheet and slightly overvalued.
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 +/- 5% a week.
Volatility Over Time: ZS's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: ZS exceeded the US Software industry which returned 35.5% over the past year.
Return vs Market: ZS exceeded the US Market which returned 34.7% over the past year.
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
2 days ago | Simply Wall StIs Now An Opportune Moment To Examine Zscaler, Inc. (NASDAQ:ZS)?
2 weeks ago | Simply Wall StDo Insiders Own Lots Of Shares In Zscaler, Inc. (NASDAQ:ZS)?
1 month ago | Simply Wall StHave Zscaler, Inc. (NASDAQ:ZS) Insiders Been Selling Their Stock?
Is Zscaler undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ZS ($247.93) is trading below our estimate of fair value ($368.3)
Significantly Below Fair Value: ZS is trading below fair value by more than 20%.
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 (66.8x) compared to the US Software industry average (6.8x).
How is Zscaler forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
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 (23.6% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: ZS's revenue (23.6% 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 low in 3 years time (18.9%).
How has Zscaler performed over the past 5 years?
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 43.7% 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 (34.2%).
Return on Equity
High ROE: ZS has a negative Return on Equity (-45.38%), as it is currently unprofitable.
How is Zscaler's financial position?
Financial Position Analysis
Short Term Liabilities: ZS's short term assets ($1.7B) exceed its short term liabilities ($564.9M).
Long Term Liabilities: ZS's short term assets ($1.7B) exceed its long term liabilities ($989.3M).
Debt to Equity History and Analysis
Debt Level: ZS's debt to equity ratio (177.2%) is considered high.
Reducing Debt: Insufficient data to determine if ZS's debt to equity ratio has reduced over the past 5 years.
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 64.4% per year.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jay Chaudhry (62 yo)
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 ($USD11.17M).
Compensation vs Earnings: Jay's compensation has increased whilst the company is unprofitable.
Experienced Management: ZS's management team is considered experienced (4.5 years average tenure).
Experienced Board: ZS's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.
Zscaler, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Zscaler, Inc.
- Ticker: ZS
- Exchange: NasdaqGS
- Founded: 2007
- Industry: Systems Software
- Sector: Software
- Market Cap: US$33.963b
- Shares outstanding: 136.99m
- Website: https://www.zscaler.com
Number of Employees
- Zscaler, Inc.
- 120 Holger Way
- San Jose
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/04 23:13|
|End of Day Share Price||2021/08/04 00:00|
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.