# Zscaler Inc. (ZS) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $169.80, market value $27.7 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Zscaler Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 8.3×**. Each dollar of revenue is priced at 8.3×.
- **Price / book: 10.7×**. The shares trade at 10.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 3.1%** (5-yr avg 2.1%). Free cash flow equals 3.1% of the market value, above its five-year average of 2.1%, so the shares are cheaper on cash than they have usually been.

## Profitability
- **Gross margin: 76.8%**. Zscaler Inc. keeps 76.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: -4.0%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -1.9%**. The company reported a net loss over the last twelve months.
- **Return on equity: -2.4%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -3.7%**. Return on all capital, debt included, is -3.7%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -0.8%**. Each dollar of assets produces -0.8% of profit.

## Growth
- **Revenue growth (1 yr): 25.4%** (3-yr 27.5%/yr, 5-yr 37.9%/yr). Revenue grew 25.4% over the last year, against 37.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -44.4%**. Earnings per share fell 44.4%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 32.7%/yr**. Free cash flow has compounded at 32.7% a year over three years.

## Financial health
- **Debt to equity: 0.44**. Debt is 0.44 times equity: a conservative balance sheet.
- **Current ratio: 1.70** (quick 1.70). Current assets cover the next year's liabilities 1.70 times.
- **Altman Z-score: 4.30**. A Z-score of 4.30 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Zscaler Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (43 analysts). 43 analysts cover Zscaler Inc.; the consensus is buy, with an average price target of $206.34 (+22% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -36.7%** (YTD -24.5%, 3-mo 29.8%). The shares are down 36.7% over twelve months including dividends.
- **From 52-week high: -49.6%** (48.1% above the low). Trading 50% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 1.03** (volatility 63%). Beta of 1.03 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ZS · Page: https://foliofundamentals.com/stocks/zs

Not investment advice.