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Zscaler, Inc. (ZS) stock analysis

ZSNasdaqServices-Computer Programming ServicesFiscal year ends July 31
Financials through Q4 FY2026, quarter ended Jul 31, 2026Last filing: 10-K on Sep 3, 2026Score 10/30
$193.22−0.57 (-0.30%)

Close on Nov 12, 2026Market cap $31.51BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth3Performance2Health5Dividend0

Mixed10 of 30 checks passed

Zscaler passes 10 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
3/6
Past performance
2/6
Financial health
5/6
Dividend
0/6

What stands out

  • No debt

    Zscaler has no borrowings on its latest balance sheet.

  • Revenue growing 10%+ a year

    Revenue grew 27.5% a year over the last three fiscal years.

  • Debt covered by cash flow

    There is no debt to cover.

  • Low bankruptcy risk

    The Altman Z-score is 4.06; above 3 is the safe zone and below 1.8 the distress zone.

What to watch

  • Return on equity under 15%

    Return on equity was -2.9% over the last twelve months and averaged -22.7% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -19.5%, below the 10% that usually covers the cost of capital.

  • Interest not well covered

    Operating income covers interest expense -11.3 times; we look for at least 5.

  • P/B above the industry

    Zscaler's price-to-book of 12.16 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Zscaler's price-to-book of 12.16 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth3/6

  • Revenue growing 10%+ a year

    Revenue grew 27.5% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 25.4% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

  • Guidance raised

    Zscaler raised its full year of fiscal 2026 Revenue outlook on May 26, 2026.

  • Gross margin slipping

    Gross margin was 76.8% over the last twelve months, against 76.9% a year earlier.

Past performance2/6

  • Return on equity under 15%

    Return on equity was -2.9% over the last twelve months and averaged -22.7% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -19.5%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Zscaler's return on equity of -2.9% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -1.9% over the last twelve months, against a 5-year average of -10.9%.

  • Net margin above the industry

    Zscaler's net margin of -1.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Financial health5/6

  • No debt

    Zscaler has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest not well covered

    Operating income covers interest expense -11.3 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 1.70 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 4.06; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Zscaler has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Zscaler. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/B at month end
  • Own 5-year median 27.9
  • Computer Programming, Data Processing, and Other Computer Related Services median 3.3

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$575.80M
Value traded per 1% price move
$188.58M

Downside

High risk

Typical loss in a bad month
29.0%
Volatility (annualized)
68%
Sharpe ratio, 1 year
-0.66
Beta to the S&P 500 (5Y)
1.82

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2015 to 2026

Gross margin

76.8%−0.9 pts over 5 years

Operating margin

-4.0%+26.9 pts over 5 years

Net margin

-1.9%+37.0 pts over 5 years

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