Zscaler Inc Receives 66% Rating from Guru Growth Model

Zscaler Inc is highlighted in a recent report, receiving a 66% rating based on fundamental analysis. This indicates moderate interest from the growth model used, showing potential but also areas of concern.

Date: 08-03-2025

AI Rating: 6

Performance Overview

Zscaler Inc (ZS) has received a rating of 66% based on the P/B Growth Investor model, indicating a moderate level of interest in the stock's fundamentals and valuation. A score above 80% typically suggests stronger interest, so this rating provides a somewhat positive outlook but recognizes room for improvement.

Key Metrics Analysis

Reviewing the stock's criteria reveals several important insights:

Book/Market Ratio: The stock passed this criterion, which suggests it is priced attractively compared to its book value.
Return on Assets: This also passed, indicating effective utilization of the firm’s assets to generate earnings.
Cash Flow from Operations to Assets: This criterion failed, highlighting a potential weakness in cash flow generation relative to assets.
Cash Flow from Operations to Assets vs. Return on Assets: This passed, suggesting that while cash flow generation may be weak, it is effective in relation to asset utilization.
Return on Assets Variance: A passing score here further emphasizes stable returns.
Sales Variance: Passing indicates consistent sales performance.
Advertising to Assets, Capital Expenditures to Assets: Both failed, suggesting concerns about spending effectiveness.
Research and Development to Assets: This passed, reflecting good investment in future growth initiatives.

While the company shows potential in certain areas such as effective asset management and investment in R&D, the failure in cash flow metrics raises caution for investors.

Stocks: ZS