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Zscaler Inc ZS

Morningstar Rating
$171.64 −0.27 (0.16%)
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Company Report

Zscaler Is a Leading Security Vendor Aiming to Displace Firewalls’ Dominance in Network Security

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of an enterprise and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

Price vs Fair Value

ZS is trading within a range we consider fairly valued.
Price
$176.98
Fair Value
$738.00
Uncertainty
High
1-Star Price
$425.16
5-Star Price
$964.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Zscaler has strong secular tailwinds behind its back as the convergence of networking and the security market is in its early innings.

Bears

Large public cloud vendors often offer their own cybersecurity solutions, which could hamper Zscaler’s growth opportunities.

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News

Trading Information

Previous Close Price
$171.91
Day Range
$170.82173.77
52-Week Range
$125.25259.61
Bid/Ask
$171.91 / $172.34
Market Cap
$25.72 Bil
Volume/Avg
1.3 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
70.82
Price/Sales
14.01
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler’s offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
5,962

Competitors

Valuation

Metric
ZS
PANW
CSCO
Price/Earnings (Normalized)
70.8255.1011.60
Price/Book Value
28.2122.344.09
Price/Sales
14.0114.033.42
Price/Cash Flow
46.1645.5211.56
Price/Earnings
ZS
PANW
CSCO

Financial Strength

Metric
ZS
PANW
CSCO
Quick Ratio
1.860.731.10
Current Ratio
1.980.841.37
Interest Coverage
−22.5697.9333.76
Quick Ratio
ZS
PANW
CSCO

Profitability

Metric
ZS
PANW
CSCO
Return on Assets (Normalized)
11.57%11.97%15.60%
Return on Equity (Normalized)
55.65%68.27%36.40%
Return on Invested Capital (Normalized)
17.27%31.97%26.89%
Return on Assets
ZS
PANW
CSCO
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