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Upturn AI SWOT - About
ZS 
Zscaler Inc (ZS)
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Upturn Advisory Summary
08/14/2025: ZS (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
46 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $316.07
1 Year Target Price $316.07
| 24 | Strong Buy |
| 9 | Buy |
| 11 | Hold |
| 1 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 6.71% | Avg. Invested days 40 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 42.19B USD | Price to earnings Ratio - | 1Y Target Price 316.07 |
Price to earnings Ratio - | 1Y Target Price 316.07 | ||
Volume (30-day avg) 46 | Beta 1.06 | 52 Weeks Range 153.45 - 318.46 | Updated Date 08/14/2025 |
52 Weeks Range 153.45 - 318.46 | Updated Date 08/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.25 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -1.52% | Operating Margin (TTM) -3.75% |
Management Effectiveness
Return on Assets (TTM) -1.61% | Return on Equity (TTM) -2.68% |
Valuation
Trailing PE - | Forward PE 75.19 | Enterprise Value 41470810811 | Price to Sales(TTM) 16.57 |
Enterprise Value 41470810811 | Price to Sales(TTM) 16.57 | ||
Enterprise Value to Revenue 16.28 | Enterprise Value to EBITDA 411.42 | Shares Outstanding 155696000 | Shares Floating 98907233 |
Shares Outstanding 155696000 | Shares Floating 98907233 | ||
Percent Insiders 36.8 | Percent Institutions 56.29 |
Upturn AI SWOT
Zscaler Inc
Company Overview
History and Background
Zscaler Inc. was founded in 2007 by Jay Chaudhry and K. Kailash. It pioneered cloud-native security solutions, evolving from a secure web gateway to a comprehensive zero trust platform.
Core Business Areas
- Zscaler Internet Access (ZIA): Provides secure internet and web access, preventing malware and data breaches.
- Zscaler Private Access (ZPA): Offers zero trust network access, connecting users to internal applications without network access.
- Zscaler Digital Experience (ZDX): Monitors and optimizes user experience for cloud and SaaS applications.
Leadership and Structure
Jay Chaudhry is the Chairman and CEO. The company has a typical hierarchical structure with departments for engineering, sales, marketing, and operations.
Top Products and Market Share
Key Offerings
- Zscaler Internet Access (ZIA): ZIA is a cloud-delivered security service that inspects all traffic, regardless of port or protocol, before it reaches its destination. Competitors include Palo Alto Networks (PANW), Netskope, and Cisco (CSCO). Market share data is difficult to precisely quantify, but Zscaler is a leading player in the Secure Web Gateway (SWG) market.
- Zscaler Private Access (ZPA): ZPA provides secure, zero trust access to private applications without the need for a VPN. Competitors include Palo Alto Networks (PANW), Akamai (AKAM), and VMware (VMW) (now Broadcom AVGO). Again, precise market share data is challenging to obtain.
- Zscaler Cloud Protection (ZCP): Offers cloud workload protection and Cloud Infrastructure Entitlement Management. Competitors include Palo Alto Networks (PANW) and Wiz.
Market Dynamics
Industry Overview
The cybersecurity industry is experiencing rapid growth, driven by increasing cyber threats, cloud adoption, and remote work trends. Zero trust architecture is becoming a standard.
Positioning
Zscaler is a leader in cloud-delivered security, offering a comprehensive zero trust platform. Its competitive advantage lies in its purpose-built cloud architecture and focus on zero trust principles.
Total Addressable Market (TAM)
Estimates for the cybersecurity TAM vary, but consistently show a multi-billion dollar market. The Secure Access Service Edge (SASE) market alone is estimated to reach tens of billions in the coming years. Zscaler is well-positioned to capture a significant portion of this TAM with its SASE platform.
Upturn SWOT Analysis
Strengths
- Cloud-native architecture
- Zero trust security model
- Comprehensive platform
- Strong brand reputation
- Scalable infrastructure
Weaknesses
- High valuation
- Reliance on subscription revenue
- Integration complexities with legacy systems
- Price Sensitivity among smaller business
Opportunities
- Expansion into new markets
- Adoption of SASE framework
- Integration with other security solutions
- Increased demand for cloud security
- Growing enterprise digital footprint
Threats
- Increasing competition
- Evolving cyber threats
- Economic downturn
- Data breaches
- Regulatory changes
Competitors and Market Share
Key Competitors
- PANW
- CRWD
- FTNT
- AKAM
- NET
Competitive Landscape
Zscaler's competitive advantage lies in its cloud-native architecture and zero trust platform. However, it faces competition from larger, more established security vendors with broader product portfolios.
Major Acquisitions
ShiftRight
- Year: 2019
- Acquisition Price (USD millions): 26
- Strategic Rationale: Accelerates DevSecOps automation through context-aware security.
Smokescreen Technologies
- Year: 2021
- Acquisition Price (USD millions): 0
- Strategic Rationale: Enhances Zscaler's deception capabilities, creating automated active defense and threat hunting.
Canopy
- Year: 2023
- Acquisition Price (USD millions): 0
- Strategic Rationale: Strengthening its data protection through the integration of advanced Data Loss Prevention (DLP) capabilities into its cloud-native security platform.
Growth Trajectory and Initiatives
Historical Growth: Zscaler has experienced significant revenue growth in recent years, driven by the increasing adoption of cloud security and zero trust architectures.
Future Projections: Analysts project continued revenue growth for Zscaler, driven by demand for its cloud security platform and expansion into new markets.
Recent Initiatives: Recent initiatives include strategic partnerships, product enhancements, and expansion of its sales and marketing efforts.
Summary
Zscaler is a leading cloud security company with a strong zero trust platform. Its cloud-native architecture and focus on zero trust provide a competitive advantage. High valuation and increasing competition are factors to watch, while cloud adoption and the shift to SASE represent significant growth opportunities.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Zscaler Inc
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 2018-03-16 | Co-Founder, CEO & Chairman of the Board Mr. Jagtar Singh Chaudhry | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 7348 | Website https://www.zscaler.com |
Full time employees 7348 | Website https://www.zscaler.com | ||
Zscaler, Inc. operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also provides Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. In addition, the company offers Posture Control solutions comprising cloud applications and workload data security to protect data in public cloud environments; and Cloud Infrastructure Entitlement Management that provides deep granularity into identity and privilege access management. Further, it provides Workload Segmentation solutions that secures application-to-application communications inside public clouds and data centers; and Zero Trust Device Segmentation solutions that offers agentless segmentation for enterprise IT and OT environments, as well as Zero Trust SD-WAN solutions. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. The company serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, 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.
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