ZS Zscaler, Inc. - Fundamental Analysis
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ZS Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Infrastructure
Current Price
Live
$213.98
Analyst Target
$318.35
+48.8%
Upside
52W High
$336.99
52W Low
$164.78
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
ZS exhibits weak financial health with a Piotroski F-Score of just 2/9, signaling significant operational and profitability concerns. Despite strong revenue growth of 25.5% and a bullish analyst recommendation (buy), the company is unprofitable with negative profit and operating margins, weak ROE and ROA, and deteriorating earnings momentum. Insider selling worth $9.75M over the past six months adds to caution, while rich valuation multiples (P/S of 12.04, Forward P/E of 47.70) imply high growth expectations already priced in. The stock's recent underperformance (-25.9% over 6M) and lack of Graham or Altman metrics further limit confidence in a near-term re-rating.
Key Strengths
Strong revenue growth (25.5% YoY), outpacing sector average of 19.00%
Exceptional gross margin of 76.77%, indicating pricing power and scalable software model
Consistently beats earnings estimates, with 3 out of last 4 quarters and a strong average surprise of 19.51%
Bullish analyst consensus with 45 analysts recommending 'buy'
Solid balance sheet liquidity with Current Ratio of 1.82 and Quick Ratio of 1.68
Key Risks
Very weak Piotroski F-Score of 2/9, indicating poor financial health and deteriorating fundamentals
Negative profitability: -1.45% net margin and -3.88% operating margin
Negative ROE (-2.41%) and ROA (-1.36%), suggesting inefficient use of equity and assets
Significant insider selling: $9.75M in net sales over last 6 months, signaling lack of confidence
Rich valuation metrics (P/S 12.04, Forward P/E 47.70) leave little margin for error
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare ZS against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
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