Zscaler reported strong third-quarter results, with sales and adjusted operating margins expanding 25% and 140 basis points to $851 million and 23%, respectively. Despite 25% annual recurring revenue growth in the quarter, the firm guided to 16.5% growth next year, leading to shares selling off.
Zscaler has strong secular tailwinds behind its back as the convergence of networking and the security market is in its early innings.
Large public cloud vendors often offer their own cybersecurity solutions, which could hamper Zscaler’s growth opportunities.
|
Metric
|
ZS
|
PANW
|
CSCO
|
|---|---|---|---|
Price/Earnings (Normalized) | 32.87 | 74.37 | 29.62 |
Price/Book Value | 8.85 | 8.22 | 9.77 |
Price/Sales | 6.48 | 19.41 | 7.94 |
Price/Cash Flow | 17.76 | 57.69 | 28.03 |
|
Metric
|
ZS
|
PANW
|
CSCO
|
|---|---|---|---|
Quick Ratio | 1.71 | 0.73 | 0.66 |
Current Ratio | 1.86 | 0.86 | 0.92 |
Interest Coverage | −23.63 | — | 10.01 |
|
Metric
|
ZS
|
PANW
|
CSCO
|
|---|---|---|---|
Return on Assets (Normalized) | 10.16% | 9.80% | 13.34% |
Return on Equity (Normalized) | 32.16% | 22.63% | 34.57% |
Return on Invested Capital (Normalized) | 14.73% | 19.49% | 21.97% |
|
1-Day Chart
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Morningstar Rating for Stocks
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United States