Zscaler, Inc. (ZS) on Decifer

Why it ranks here

• It is not profitable yet and it now funds itself from its own cash.
• Revenue is growing about 25% a year, profits are expected to grow 15%, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind but its balance sheet leaves little room to fund growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.

The current read

The evidence on ZS points in two directions at once: the intelligence feed flags this name as connected to what is moving markets now, while price is lagging the market story behind this name, a sign the connection is not paying off. Until one side gives way, treat the picture as unresolved rather than a clean story.

Themes

• Cybersecurity & Identity: Cloud adoption, remote work and escalating breach costs are structurally increasing the share of IT budgets dedicated to security and identity.

Read the full ZS research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.