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-3.6%
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-1.9%
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-29.4 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$374M
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$2.1B
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-Book13.00x
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$779M
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$479M
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 Zero Trust SASE, a solution that securely connects workforces, AI agents, workloads, and IoT/OT devices to cloud apps and AI services; Zscaler Internet Access, which provides advanced threat protection, sandbox, and zero trust firewall; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, and reduced attack surface; Zero Trust Browser, a solution that secures browser-based access to business applications for the extended workforce, including third parties and partners; Zscaler Digital Experience, a solution that monitors end-user experience and helps organizations identify and resolve performance issues across their digital environment; Zero Trust Branch; and Zero Trust Cloud solutions. It also provides Security for AI solution to secure AI adoption across the full AI ecosystem; data security services, including AI-powered data classification and contextual insights, data loss prevention, Saas security, and data security posture management solution. In addition, the company offers Agentic Security Operations solution that enables enterprises to reduce cyber risk by using AI-powered automation; exposure management platform; deception; managed detection and response; agentic security operations center; and threat hunting solutions. It serves 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 Zero Trust SASE, a solution that securely connects workforces, AI agents, workloads, and IoT/OT devices to cloud apps and AI services; Zscaler Internet Access, which provides advanced threat protection, sandbox, and zero trust firewall; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, and reduced attack surface; Zero Trust Browser, a solution that secures browser-based access to business applications for the extended workforce, including third parties and partners; Zscaler Digital Experience, a solution that monitors end-user experience and helps organizations identify and resolve performance issues across their digital environment; Zero Trust Branch; and Zero Trust Cloud solutions. It also provides Security for AI solution to secure AI adoption across the full AI ecosystem; data security services, including AI-powered data classification and contextual insights, data loss prevention, Saas security, and data security posture management solution. In addition, the company offers Agentic Security Operations solution that enables enterprises to reduce cyber risk by using AI-powered automation; exposure management platform; deception; managed detection and response; agentic security operations center; and threat hunting solutions. It serves 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
-63,179
-41,478
-57,706
-202,335
Reconciled Depreciation
192,012
121,181
80,932
66,816
Reconciled Cost Of Revenue
601,230
498,697
397,429
296,789
EBITDA
178,501
108,119
60,921
-109,207
EBIT
-13,511
-13,062
-20,011
-176,023
Net Interest Income
124,338
115,842
95,998
53,921
Interest Expense
3,628
5,229
9,218
6,541
Interest Income
136,132
125,364
109,130
60,462
Normalized Income
-55,902
-40,438
-57,706
-202,335
Net Income From Continuing And Discontinued Operation
-63,179
-41,478
-57,706
-202,335
Total Expenses
3,473,662
2,800,259
2,289,248
1,851,575
Total Operating Income As Reported
-133,267
-128,460
-121,477
-234,623
Diluted Average Shares
160,219
154,404
149,586
144,942
Basic Average Shares
160,219
154,404
149,586
144,942
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-63,179
-41,478
-57,706
-202,335
Net Income Common Stockholders
-63,179
-41,478
-57,706
-202,335
Net Income
-63,179
-41,478
-57,706
-202,335
Net Income Including Noncontrolling Interests
-63,179
-41,478
-57,706
-202,335
Net Income Continuous Operations
-63,179
-41,478
-57,706
-202,335
Tax Provision
46,040
23,187
28,477
19,771
Pretax Income
-17,139
-18,291
-29,229
-182,564
Other Income Expense
-20,338
-6,989
-3,750
-1,862
Other Non Operating Income Expenses
-8,210
-5,673
-3,750
-1,862
Special Income Charges
-12,128
-1,316
0
-7,600
Restructuring And Mergern Acquisition
12,128
1,316
0
7,600
Net Non Operating Interest Income Expense
124,338
115,842
95,998
53,921
Total Other Finance Cost
8,166
4,293
3,914
2,783
Interest Expense Non Operating
3,628
5,229
9,218
6,541
Interest Income Non Operating
136,132
125,364
109,130
60,462
Operating Income
-121,139
-127,144
-121,477
-234,623
Operating Expense
2,696,033
2,182,081
1,812,119
1,488,743
Depreciation Amortization Depletion Income Statement
15,613
1,700
1,232
773
Depreciation And Amortization In Income Statement
15,613
1,700
1,232
773
Amortization
15,613
1,700
1,232
773
Amortization Of Intangibles Income Statement
15,613
1,700
1,232
773
Research And Development
903,399
672,485
499,828
350,786
Selling General And Administration
1,777,021
1,507,896
1,311,059
1,137,184
Selling And Marketing Expense
1,473,698
1,257,458
1,099,007
958,329
General And Administrative Expense
303,323
250,438
212,052
178,855
Other Gand A
303,323
250,438
212,052
178,855
Salaries And Wages
295,331
281,306
Gross Profit
2,574,894
2,054,937
1,690,642
1,254,120
Cost Of Revenue
777,629
618,178
477,129
362,832
Total Revenue
3,352,523
2,673,115
2,167,771
1,616,952
Operating Revenue
3,352,523
2,673,115
2,167,771
1,616,952
Balance Sheet
2026
2025
2024
2023
2022
Ordinary Shares Number
163,055
158,301
152,490
147,169
Share Issued
163,055
158,301
152,490
147,169
Net Debt
768,001
Total Debt
1,855,824
1,796,576
1,237,965
1,210,545
Tangible Book Value
1,165,808
1,334,220
793,238
610,061
Invested Capital
4,294,616
3,500,000
2,416,377
1,859,271
Working Capital
2,069,922
2,464,679
283,730
1,354,446
Net Tangible Assets
1,165,808
1,334,220
793,238
610,061
Capital Lease Obligations
159,469
95,849
95,690
76,386
Common Stock Equity
2,598,261
1,799,273
1,274,102
725,112
Total Capitalization
4,294,616
3,500,000
1,274,102
1,859,271
Total Equity Gross Minority Interest
2,598,261
1,799,273
1,274,102
725,112
Stockholders Equity
2,598,261
1,799,273
1,274,102
725,112
Gains Losses Not Affecting Retained Earnings
-23,544
8,081
-4,789
-1,576
Other Equity Adjustments
-23,544
8,081
-4,789
-1,576
Retained Earnings
-1,252,737
-1,189,558
-1,148,080
-1,090,374
Additional Paid In Capital
3,874,379
2,980,591
2,426,819
1,816,915
Capital Stock
163
159
152
147
Common Stock
163
159
152
147
Total Liabilities Net Minority Interest
5,268,453
4,620,615
3,430,866
2,883,205
Total Non Current Liabilities Net Minority Interest
2,307,142
2,191,004
317,979
1,347,337
Other Non Current Liabilities
70,940
33,316
22,100
12,728
Non Current Deferred Liabilities
445,272
413,609
251,055
158,533
Non Current Deferred Revenue
445,272
413,609
251,055
158,533
Long Term Debt And Capital Lease Obligation
1,790,930
1,744,079
44,824
1,176,076
Long Term Capital Lease Obligation
94,575
43,352
44,824
41,917
Long Term Debt
1,696,355
1,700,727
1,134,159
968,674
Current Liabilities
2,961,311
2,429,611
3,112,887
1,535,868
Current Deferred Liabilities
2,480,501
2,054,417
1,643,919
1,281,143
Current Deferred Revenue
2,480,501
2,054,417
1,643,919
1,281,143
Current Debt And Capital Lease Obligation
64,894
52,497
1,193,141
34,469
Current Capital Lease Obligation
64,894
52,497
50,866
34,469
Current Debt
1,142,275
Other Current Borrowings
1,142,275
Pensionand Other Post Retirement Benefit Plans Current
77,350
61,008
62,255
44,779
Payables And Accrued Expenses
338,566
261,689
213,572
175,477
Current Accrued Expenses
290,594
214,783
190,263
156,996
Payables
47,972
46,906
23,309
18,481
Accounts Payable
47,972
46,906
23,309
18,481
Total Assets
7,866,714
6,419,888
4,704,968
3,608,317
Total Non Current Assets
2,835,481
1,525,598
1,308,351
718,003
Other Non Current Assets
110,373
98,674
58,083
30,519
Non Current Deferred Assets
402,423
328,722
296,525
259,407
Goodwill And Other Intangible Assets
1,432,453
465,053
480,864
115,051
Other Intangible Assets
214,355
47,323
63,835
25,859
Goodwill
1,218,098
417,730
417,029
89,192
Net PPE
890,232
633,149
472,879
313,026
Accumulated Depreciation
-542,373
-371,776
-250,311
-176,424
Gross PPE
1,432,605
1,004,925
723,190
489,450
Leases
37,806
10,141
7,974
7,608
Other Properties
940,087
661,084
508,533
351,522
Machinery Furniture Equipment
454,712
333,700
206,683
130,320
Current Assets
5,031,233
4,894,290
3,396,617
2,890,314
Other Current Assets
192,432
148,881
101,561
91,619
Current Deferred Assets
215,577
180,819
148,873
115,827
Prepaid Assets
39,353
Receivables
1,149,073
992,181
736,529
582,636
Accounts Receivable
1,149,073
992,181
736,529
582,636
Cash Cash Equivalents And Short Term Investments
3,474,151
3,572,409
2,409,654
2,100,232
Other Short Term Investments
2,545,797
1,183,386
986,574
838,026
Cash And Cash Equivalents
928,354
2,389,023
1,423,080
1,262,206
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
779,143
726,693
584,950
333,619
Repayment Of Debt
0
-1,150,040
0
0
Issuance Of Debt
0
1,725,000
0
0
Capital Expenditure
-350,511
-245,760
-194,896
-128,724
Interest Paid Supplemental Data
1,436
1,438
1,438
Income Tax Paid Supplemental Data
23,123
14,940
5,606
End Cash Position
928,354
2,389,023
1,423,080
1,262,206
Beginning Cash Position
2,389,023
1,423,080
1,262,206
1,013,210
Changes In Cash
-1,460,669
965,943
160,874
248,996
Financing Cash Flow
62,409
420,512
64,208
45,990
Cash Flow From Continuing Financing Activities
62,409
420,512
64,208
45,990
Net Other Financing Charges
-991
-221,592
-39
-217
Proceeds From Stock Option Exercised
63,400
67,144
64,247
46,207
Net Issuance Payments Of Debt
0
574,960
0
0
Net Short Term Debt Issuance
0
-1,150,040
0
0
Short Term Debt Payments
0
-1,150,040
0
0
Net Long Term Debt Issuance
0
1,725,000
0
0
Long Term Debt Issuance
0
1,725,000
0
0
Investing Cash Flow
-2,652,732
-427,022
-683,180
-259,337
Cash Flow From Continuing Investing Activities
-2,652,732
-427,022
-683,180
-259,337
Net Investment Purchase And Sale
-1,384,147
-180,428
-113,582
-114,970
Sale Of Investment
880,545
1,101,025
1,179,433
952,379
Purchase Of Investment
-2,264,692
-1,281,453
-1,293,015
-1,067,349
Net Business Purchase And Sale
-918,074
-834
-374,702
-15,643
Purchase Of Business
-918,074
-834
-374,702
-15,643
Net PPE Purchase And Sale
-277,304
-164,252
-144,588
-97,197
Purchase Of PPE
-277,304
-164,252
-144,588
-97,197
Capital Expenditure Reported
-73,207
-81,508
-50,308
-31,527
Operating Cash Flow
1,129,654
972,453
779,846
462,343
Cash Flow From Continuing Operating Activities
1,129,654
972,453
779,846
462,343
Change In Working Capital
-97,565
26,717
66,068
28,573
Change In Other Working Capital
67,721
342,599
250,011
241,614
Change In Other Current Liabilities
-67,601
-62,009
-49,239
-32,197
Change In Payables And Accrued Expense
70,380
43,709
58,227
42,936
Change In Accrued Expense
81,007
26,177
54,063
51,352
Change In Payable
-10,627
17,532
4,164
-8,416
Change In Account Payable
-10,627
17,532
4,164
-8,416
Change In Prepaid Assets
-28,076
-41,572
-39,971
-39,922
Change In Receivables
-139,989
-256,010
-152,960
-183,858
Changes In Account Receivables
-139,989
-256,010
-152,960
-183,858
Other Non Cash Items
302,277
234,588
186,818
134,004
Stock Based Compensation
821,923
661,350
527,676
444,834
Amortization Of Securities
-4,655
-15,923
-19,062
-6,582
Deferred Tax
-20,387
-14,351
-5,633
352
Deferred Income Tax
-20,387
-14,351
-5,633
352
Depreciation Amortization Depletion
192,012
121,181
80,932
66,816
Depreciation And Amortization
192,012
121,181
80,932
66,816
Amortization Cash Flow
43,468
16,820
14,624
11,060
Amortization Of Intangibles
43,468
16,820
14,624
11,060
Depreciation
148,544
104,361
66,308
55,756
Operating Gains Losses
-772
369
753
-3,319
Gain Loss On Investment Securities
-772
369
753
-3,319
Net Income From Continuing Operations
-63,179
-41,478
-57,706
-202,335
1/6
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
13.0x
Net Assets: $2.6B
Warren's Owner Earnings
$479M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/6 — 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.
$3.4B
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.
1.70x
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.
37.0x
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.
13.00x P/B (P/E×P/B: 480.8)
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 — $3.4Bvs > $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 — 1.70xvs 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 — 37.0xvs 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
$-1.45
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$-8.25
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
-2.0%
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
2026
2025
2024
2023
2022
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
N/A
Free Cash Flow
$779M▲
$727M▲
$585M▲
$334M•
N/A•
Warren's Owner Earnings
$479M
$325M
$218M
-$7M
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
34.67%
High — management has strong skin in the game
Return on Equity (ROE)
-2.4%
Weak — poor returns on equity
Return on Assets (ROA)
-0.8%
Poor — assets are not generating adequate returns
Debt Trend YoY
+3.3% YoY
Debt is roughly stable
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.
6.07%
9,890,384
Vanguard Portfolio Management LLC
3.80%
6,196,726
Vanguard Capital Management LLC
2.90%
4,721,393
First Trust Advisors LP
2.16%
3,529,213
Goldman Sachs Group Inc
1.94%
3,161,548
State Street Corporation
1.53%
2,493,672
Pictet Asset Management Holding SA
1.29%
2,104,621
Geode Capital Management, LLC
1.28%
2,090,724
Risk Analysis
Beta (Market Risk)
0.95
Low volatility — more stable than the market
Short Interest
6.0% of float
Moderate short interest
Debt-to-Equity
0.72x
Conservative balance sheet — low financial risk
Current Ratio
1.70x
Adequate liquidity
52-Week Price Range
Low: $114.62Current: $207.13High: $336.99
Currently at 42% 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: 76.8%. Operating margin: -3.6%. Net margin: -1.9%. Market cap: $33.8B. 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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