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Zscaler Inc ZS Stock Quote

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Morningstar‘s Stock Analysis ZS

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Is it the right time to buy or sell?

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Zscaler Scales Up Sales to See Off Fiscal 2022; Maintain FVE; Shares Undervalued

Analyst Note

| Malik Ahmed Khan |

We are maintaining our fair value estimate of $211 for narrow-moat Zscaler after the firm reported strong results to close out fiscal 2022. The better-than-expected results’ impact on our fair value estimate was neutralized by the firm’s expectation of fiscal 2023 revenue below our prior estimates. At the same time, however, we reiterate our confidence in Zscaler’s business and maintain our belief that the firm will continue to grow rapidly with the secular tailwinds of zero-trust security and digital transformations behind its back. Despite shares being up more than 11% after hours (after a 4% ascent during trading hours today), we still view the shares as undervalued.

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Key Statistics ZS

Company Profile ZS

Business Description

Zscaler is a security-as-a-service firm that offers its customers cloud-delivered solutions for protecting user devices and data. The firm leverages its position in 150 colocation data centers to deliver traditionally appliance-based security functionality, such as firewalls and sandboxes, as a completely cloud-native platform. The firm focuses on large enterprise customers and offers two primary product suites: Zscaler Internet Access, which securely connects users to externally managed application and websites (such as Salesforce and Google), and Zscaler Private Access, which securely connects users to internally managed applications. Both product suites encompass a broad gamut of capabilities situated across the traditional security stack.

120 Holger Way
San Jose, CA, 95134
T +1 408 533-0288
Industry Software - Infrastructure
Most Recent Earnings Jul 31, 2022
Fiscal Year End Jul 30, 2023
Employees 4,975

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