Skip to Content

Zscaler Inc ZS

Morningstar Rating
$249.04 −3.71 (1.47%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Zscaler Is Setting Itself Up for Long-Term Success in a Competitive Security Market

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 at a 36% premium.
Price
$249.04
Fair Value
$136.00
Uncertainty
High
1-Star Price
$152.47
5-Star Price
$745.70
Economic Moat
Wtjghrr
Capital Allocation
Bktmnyxb

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ZS is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$252.75
Day Range
$240.96251.94
52-Week Range
$84.93259.61
Bid/Ask
$225.72 / $227.40
Market Cap
$36.94 Bil
Volume/Avg
17,072 / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
117.25
Price/Sales
21.03
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)
117.2574.1112.17
Price/Book Value
46.5253.234.42
Price/Sales
21.0317.643.59
Price/Cash Flow
73.2453.4512.73
Price/Earnings
ZS
PANW
CSCO

Financial Strength

Metric
ZS
PANW
CSCO
Quick Ratio
1.830.771.10
Current Ratio
1.960.861.37
Interest Coverage
−33.6140.4533.76
Quick Ratio
ZS
PANW
CSCO

Profitability

Metric
ZS
PANW
CSCO
Return on Assets (Normalized)
10.40%11.85%17.02%
Return on Equity (Normalized)
54.87%128.35%38.38%
Return on Invested Capital (Normalized)
15.41%31.87%30.59%
Return on Assets
ZS
PANW
CSCO
See how this stock stacks up to its competitors with Morningstar Investor

Software - Infrastructure Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MSFT
Microsoft CorpRrtcn$3.0 Tril
ORCL
Oracle CorpRztmn$298.1 Bil
ADBE
Adobe IncCbksb$244.9 Bil
PANW
Palo Alto Networks IncNpqkf$115.4 Bil
SNPS
Synopsys IncRpncwyk$83.6 Bil
CRWD
CrowdStrike Holdings Inc Class AFyjdtv$77.7 Bil
FTNT
Fortinet IncZnjv$52.1 Bil
PLTR
Palantir Technologies Inc Ordinary Shares - Class AXfzkl$51.8 Bil
SQ
Block Inc Class AVzqgnmn$40.4 Bil

Sponsor Center