Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-4.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-1.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt-43.3 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$764M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.5B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Price-to-Book11.22x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$727M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$325M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Zscaler, Inc.
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-41,478
-57,706
-202,335
-390,278
Reconciled Depreciation
121,181
80,932
66,816
49,466
Reconciled Cost Of Revenue
498,697
397,429
296,789
242,282
EBITDA
108,119
64,835
-109,207
-277,585
EBIT
-13,062
-16,097
-176,023
-327,051
Net Interest Income
115,842
95,998
53,921
-51,993
Interest Expense
5,229
13,132
6,541
56,579
Interest Income
125,364
109,130
60,462
4,586
Normalized Income
-40,438
-57,706
-202,335
-390,278
Net Income From Continuing And Discontinued Operation
-41,478
-57,706
-202,335
-390,278
Total Expenses
2,800,259
2,289,248
1,851,575
1,418,375
Total Operating Income As Reported
-128,460
-121,477
-234,623
-327,429
Diluted Average Shares
154,404
149,586
144,942
140,895
Basic Average Shares
154,404
149,586
144,942
140,895
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-41,478
-57,706
-202,335
-390,278
Net Income Common Stockholders
-41,478
-57,706
-202,335
-390,278
Net Income
-41,478
-57,706
-202,335
-390,278
Net Income Including Noncontrolling Interests
-41,478
-57,706
-202,335
-390,278
Net Income Continuous Operations
-41,478
-57,706
-202,335
-390,278
Tax Provision
23,187
28,477
19,771
6,648
Pretax Income
-18,291
-29,229
-182,564
-383,630
Other Income Expense
-6,989
-3,750
-1,862
-4,208
Other Non Operating Income Expenses
-5,673
-3,750
-1,862
-4,208
Special Income Charges
-1,316
0
-7,600
0
Write Off
0
0
416
Restructuring And Mergern Acquisition
1,316
0
7,600
0
Net Non Operating Interest Income Expense
115,842
95,998
53,921
-51,993
Total Other Finance Cost
4,293
2,783
2,621
Interest Expense Non Operating
5,229
13,132
6,541
56,579
Interest Income Non Operating
125,364
109,130
60,462
4,586
Operating Income
-127,144
-121,477
-234,623
-327,429
Operating Expense
2,182,081
1,812,119
1,488,743
1,176,093
Depreciation Amortization Depletion Income Statement
1,700
1,232
773
704
Depreciation And Amortization In Income Statement
1,700
1,232
773
704
Amortization
1,700
1,232
773
704
Amortization Of Intangibles Income Statement
1,700
1,232
773
704
Research And Development
672,485
499,828
350,786
289,139
Selling General And Administration
1,507,896
1,311,059
1,137,184
886,954
Selling And Marketing Expense
1,257,458
1,099,007
958,329
735,219
General And Administrative Expense
250,438
212,052
178,855
151,735
Other Gand A
250,438
212,052
178,855
151,735
Salaries And Wages
295,331
281,306
190,052
Gross Profit
2,054,937
1,690,642
1,254,120
848,664
Cost Of Revenue
618,178
477,129
362,832
242,282
Total Revenue
2,673,115
2,167,771
1,616,952
1,090,946
Operating Revenue
2,673,115
2,167,771
1,616,952
1,090,946
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
158,301
152,490
147,169
143,038
Share Issued
158,301
152,490
147,169
143,038
Net Debt
637,640
Total Debt
1,796,576
1,237,965
1,210,545
1,045,722
Tangible Book Value
1,334,220
793,238
610,061
462,934
Invested Capital
3,500,000
2,416,377
1,859,271
1,541,974
Working Capital
2,464,679
283,730
1,354,446
1,122,200
Net Tangible Assets
1,334,220
793,238
610,061
462,934
Capital Lease Obligations
95,849
95,690
76,386
77,048
Common Stock Equity
1,799,273
1,274,102
725,112
573,300
Total Capitalization
3,500,000
1,274,102
1,859,271
1,541,974
Total Equity Gross Minority Interest
1,799,273
1,274,102
725,112
573,300
Stockholders Equity
1,799,273
1,274,102
725,112
573,300
Gains Losses Not Affecting Retained Earnings
8,081
-4,789
-1,576
-25,850
Other Equity Adjustments
8,081
-4,789
-1,576
-25,850
Retained Earnings
-1,189,558
-1,148,080
-1,090,374
-991,878
Additional Paid In Capital
2,980,591
2,426,819
1,816,915
1,590,885
Capital Stock
159
152
147
143
Common Stock
159
152
147
143
Total Liabilities Net Minority Interest
4,620,615
3,430,866
2,883,205
2,259,365
Total Non Current Liabilities Net Minority Interest
2,191,004
317,979
1,347,337
1,124,918
Other Non Current Liabilities
33,316
22,100
12,728
7,922
Non Current Deferred Liabilities
413,609
251,055
158,533
97,374
Non Current Deferred Revenue
413,609
251,055
158,533
97,374
Long Term Debt And Capital Lease Obligation
1,744,079
44,824
1,176,076
1,019,622
Long Term Capital Lease Obligation
43,352
44,824
41,917
50,948
Long Term Debt
1,700,727
1,134,159
968,674
913,538
Current Liabilities
2,429,611
3,112,887
1,535,868
1,134,447
Current Deferred Liabilities
2,054,417
1,643,919
1,281,143
923,749
Current Deferred Revenue
2,054,417
1,643,919
1,281,143
923,749
Current Debt And Capital Lease Obligation
52,497
1,193,141
34,469
26,100
Current Capital Lease Obligation
52,497
50,866
34,469
26,100
Current Debt
1,142,275
Other Current Borrowings
1,142,275
Pensionand Other Post Retirement Benefit Plans Current
61,008
62,255
44,779
111,948
Payables And Accrued Expenses
261,689
213,572
175,477
72,650
Current Accrued Expenses
214,783
190,263
156,996
46,496
Payables
46,906
23,309
18,481
26,154
Accounts Payable
46,906
23,309
18,481
26,154
Total Assets
6,419,888
4,704,968
3,608,317
2,832,665
Total Non Current Assets
1,525,598
1,308,351
718,003
576,018
Other Non Current Assets
98,674
58,083
30,519
21,870
Non Current Deferred Assets
328,722
296,525
259,407
210,792
Goodwill And Other Intangible Assets
465,053
480,864
115,051
110,366
Other Intangible Assets
47,323
63,835
25,859
31,819
Goodwill
417,730
417,029
89,192
78,547
Net PPE
633,149
472,879
313,026
232,990
Accumulated Depreciation
-371,776
-250,311
-176,424
-119,117
Gross PPE
1,004,925
723,190
489,450
352,107
Leases
10,141
7,974
7,608
7,339
Other Properties
661,084
508,533
351,522
263,394
Machinery Furniture Equipment
333,700
206,683
130,320
81,374
Current Assets
4,894,290
3,396,617
2,890,314
2,256,647
Other Current Assets
148,881
101,561
91,619
39,353
Current Deferred Assets
180,819
148,873
115,827
86,210
Prepaid Assets
39,353
31,269
Receivables
992,181
736,529
582,636
399,745
Accounts Receivable
992,181
736,529
582,636
399,745
Cash Cash Equivalents And Short Term Investments
3,572,409
2,409,654
2,100,232
1,731,339
Other Short Term Investments
1,183,386
986,574
838,026
718,129
Cash And Cash Equivalents
2,389,023
1,423,080
1,262,206
1,013,210
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
726,693
584,950
333,619
231,332
Repayment Of Debt
-1,150,040
0
0
Issuance Of Debt
1,725,000
0
0
0
Capital Expenditure
-245,760
-194,896
-128,724
-90,580
Interest Paid Supplemental Data
1,436
1,438
1,438
1,462
Income Tax Paid Supplemental Data
23,123
14,940
5,606
4,144
End Cash Position
2,389,023
1,423,080
1,262,206
1,013,210
Beginning Cash Position
1,423,080
1,262,206
1,013,210
275,898
Changes In Cash
965,943
160,874
248,996
737,312
Financing Cash Flow
420,512
64,208
45,990
41,337
Cash Flow From Continuing Financing Activities
420,512
64,208
45,990
41,337
Net Other Financing Charges
-221,592
-39
-217
-255
Proceeds From Stock Option Exercised
67,144
64,247
46,207
41,592
Net Issuance Payments Of Debt
574,960
0
0
0
Net Short Term Debt Issuance
-1,150,040
0
0
Short Term Debt Payments
-1,150,040
0
0
Net Long Term Debt Issuance
1,725,000
0
0
0
Long Term Debt Issuance
1,725,000
0
0
0
Investing Cash Flow
-427,022
-683,180
-259,337
374,063
Cash Flow From Continuing Investing Activities
-427,022
-683,180
-259,337
374,063
Net Investment Purchase And Sale
-180,428
-113,582
-114,970
489,930
Sale Of Investment
1,101,025
1,179,433
952,379
1,334,874
Purchase Of Investment
-1,281,453
-1,293,015
-1,067,349
-844,944
Net Business Purchase And Sale
-834
-374,702
-15,643
-25,287
Purchase Of Business
-834
-374,702
-15,643
-25,287
Net PPE Purchase And Sale
-164,252
-144,588
-97,197
-69,296
Purchase Of PPE
-164,252
-144,588
-97,197
-69,296
Capital Expenditure Reported
-81,508
-50,308
-31,527
-21,284
Operating Cash Flow
972,453
779,846
462,343
321,912
Cash Flow From Continuing Operating Activities
972,453
779,846
462,343
321,912
Change In Working Capital
26,717
66,068
28,573
97,451
Change In Other Working Capital
342,599
250,011
241,614
232,676
Change In Other Current Liabilities
-62,009
-49,239
-32,197
-27,663
Change In Payables And Accrued Expense
43,709
58,227
42,936
46,061
Change In Accrued Expense
26,177
54,063
51,352
31,703
Change In Payable
17,532
4,164
-8,416
14,358
Change In Account Payable
17,532
4,164
-8,416
14,358
Change In Prepaid Assets
-41,572
-39,971
-39,922
-10,287
Change In Receivables
-256,010
-152,960
-183,858
-143,336
Changes In Account Receivables
-256,010
-152,960
-183,858
-143,336
Other Non Cash Items
234,588
186,818
134,004
148,194
Stock Based Compensation
661,350
527,676
444,834
409,562
Asset Impairment Charge
0
0
416
Amortization Of Securities
-15,923
-19,062
-6,582
6,580
Deferred Tax
-14,351
-5,633
352
-562
Deferred Income Tax
-14,351
-5,633
352
-562
Depreciation Amortization Depletion
121,181
80,932
66,816
49,466
Depreciation And Amortization
121,181
80,932
66,816
49,466
Amortization Cash Flow
16,820
14,624
11,060
9,010
Amortization Of Intangibles
16,820
14,624
11,060
9,010
Depreciation
104,361
66,308
55,756
40,456
Operating Gains Losses
369
753
-3,319
1,499
Gain Loss On Investment Securities
369
753
-3,319
1,499
Net Income From Continuing Operations
-41,478
-57,706
-202,335
-390,278
2/6
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap / Net Assets
11.2x
Net Assets: $1.8B
Warren's Owner Earnings
$325M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/6 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$2.7B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
2.01x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
4 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
27.2x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
11.22x P/B (P/E×P/B: 304.7)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $2.7Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 2.01xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 4 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
❌ Moderate P/E Ratio — 27.2xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Zscaler, Inc. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$1.69
Trading at 73.8x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$-8.74
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
-2.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
N/A
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
N/A
N/A
N/A
N/A
$0M
Free Cash Flow
$727M▲
$585M▲
$334M▲
$231M•
N/A•
Warren's Owner Earnings
$325M
$218M
-$7M
-$250M
N/A
Peers & Industry
No auto-detected peers for Software - Infrastructure. You can manually compare ZS against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
34.96%
High — management has strong skin in the game
Return on Equity (ROE)
-2.3%
Weak — poor returns on equity
Return on Assets (ROA)
-0.6%
Poor — assets are not generating adequate returns
Debt Trend YoY
+45.1% YoY
Debt is growing — management is leveraging up
Leadership Team
Jagtar Singh Chaudhry
Co-Founder, CEO & Chairman of the Board
Age 66
Pay: $29,753
Mike Rich
Chief Revenue Officer & President of Global Sales
Age 58
Pay: $944,231
Kevin Rubin
Chief Financial Officer
Age 50
Pay: $609,760
Kailash
Founder & Chief Architect
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
5.30%
8,568,317
Vanguard Portfolio Management LLC
3.67%
5,930,635
Vanguard Capital Management LLC
2.88%
4,660,890
First Trust Advisors LP
2.18%
3,518,678
Goldman Sachs Group Inc
1.81%
2,924,939
State Street Corporation
1.47%
2,384,518
American Century Companies Inc
1.47%
2,384,425
FMR, LLC
1.35%
2,190,318
Risk Analysis
Beta (Market Risk)
0.96
Low volatility — more stable than the market
Short Interest
11.5% of float
Moderate short interest
Debt-to-Equity
0.79x
Conservative balance sheet — low financial risk
Current Ratio
1.86x
Adequate liquidity
52-Week Price Range
Low: $114.62Current: $124.85High: $336.99
Currently at 5% of 52-week range
Zscaler, Inc. (ZS) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 76.9%. Operating margin: -4.8%. Net margin: -1.6%. Market cap: $20.2B. Sector: Technology. Industry: Software - Infrastructure. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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