ZS

Technology

Zscaler, Inc. · Software - Infrastructure · $29B

UQS Score — Balanced Preset
40.5
Below Average

Zscaler, Inc. scores 40.5/100 using the Balanced preset.

UQS vs Technology Sector
ZS
40.5
Sector avg
38.0
Quality
Weak
Moat
Neutral
Growth
Good
Risk
Weak
Valuation
Neutral

ZS Price History

-28.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Zscaler, Inc.?

$
Today it would be worth
$7,503
That's a -25.0% total return, or -5.6% annualized.

Based on Zscaler, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

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Pro Analysis

ZS — Score History

35404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 14 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 24, 202640.514.350.068.429.142.4-0.2
May 19, 202640.714.550.068.429.143.6-0.8
May 14, 202641.515.350.068.429.147.2-0.1
May 12, 202641.615.550.068.429.147.8-0.4
May 7, 202642.016.050.068.429.149.60.0
May 3, 202642.016.050.068.429.149.4-0.1
Apr 26, 202642.116.050.068.529.150.20.0
Apr 22, 202642.116.050.068.529.150.40.0
Apr 19, 202642.116.050.068.429.150.3-0.4
Apr 18, 202642.516.050.068.429.152.8-1.9

ZS — Pillar Breakdown

Quality

14.3/100 (25%)

Zscaler, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

68.4/100 (20%)

Zscaler, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRModerate

Compound annual revenue growth rate over 3 years.

EPS GrowthModerate

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

29.1/100 (15%)

Zscaler, Inc. presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

42.4/100 (15%)

Zscaler, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowWeak

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

50/100 (25%)

Zscaler, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ZS.

Score Composition

Quality
14.3×25%3.6
Growth
68.4×20%13.7
Risk
29.1×15%4.4
Valuation
42.4×15%6.4
Moat
50.0×25%12.5
Total
40.5Below Average

Financial Data

More Stock Analysis

How is the ZS UQS Score Calculated?

The UQS (Unified Quality Score) for Zscaler, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Zscaler, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Zscaler, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.