Zscaler, Inc. (ZS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Zscaler, Inc. ?

Negative results in Apr 26

PRE-TAX PROFIT(Q) At USD -0.78 MM has Fallen at -117.19%
NET PROFIT(Q) At USD -12.3 MM has Fallen at -198.28%
INTEREST(HY) At USD 6.2 MM has Grown at 45.98%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -57.03%, its profits have fallen by -259.8%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -0.83% over the previous quarter and currently hold 0.04% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Below par performance in long term as well as near term

Along with generating -57.03% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zscaler, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zscaler, Inc.

-57.03%

-0.48

61.23%

S&P 500

22.93%

1.75

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.13%

EBIT Growth (5y)

2.91%

EBIT to Interest (avg)

-9.16

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.00

Sales to Capital Employed (avg)

0.84

Tax Ratio

80.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

66.19%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

9.75

EV to EBIT

-144.33

EV to EBITDA

1142.12

EV to Capital Employed

43.37

EV to Sales

6.55

PEG Ratio

Dividend Yield

ROCE (Latest)

-30.05%

ROE (Latest)

-2.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,100.29 MM

NET SALES(Q)

Highest at USD 850.48 MM

RAW MATERIAL COST(Y)

Fallen by 0.17% (YoY

CASH AND EQV(HY)

Highest at USD 7,051.86 MM

OPERATING PROFIT(Q)

Highest at USD 20.8 MM

OPERATING PROFIT MARGIN(Q)

Highest at 2.45 %

-20What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -0.78 MM has Fallen at -117.19%

NET PROFIT(Q)

At USD -12.3 MM has Fallen at -198.28%

INTEREST(HY)

At USD 6.2 MM has Grown at 45.98%

DEBT-EQUITY RATIO (HY)

Highest at -70.9 %

Here's what is working for Zscaler, Inc.

Operating Cash Flow

Highest at USD 1,100.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 850.48 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 20.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 2.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 7,051.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.17% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 48.94 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Zscaler, Inc.

Pre-Tax Profit

At USD -0.78 MM has Fallen at -117.19%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -12.3 MM has Fallen at -198.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 6.2 MM has Grown at 45.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at -70.9 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio