Zscaler Inc (ZS, Financial), a leading player in the software industry, has seen a significant uptick in its stock price over the past week and three months. The company's stock price has gained 6.14% over the past week and a remarkable 19.27% over the past three months. The current price stands at $170.21, with a market cap of $25.05 billion. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The GF Value for Zscaler Inc is $444.99, compared to $439.66 three months ago, indicating that the stock is significantly undervalued.
Company Overview
Zscaler Inc is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. The company's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018. 
Profitability Analysis
When it comes to profitability, Zscaler Inc has a Profitability Rank of 3/10, which is lower than the industry average. The company's Operating Margin stands at -14.04%, which is better than 29.1% of the companies in the industry. The ROE is -35.38%, better than 18.73% of the companies, while the ROA is -6.52%, better than 34.86% of the companies. The ROIC is -13.87%, better than 27.74% of the companies. 
Growth Prospects
Zscaler Inc has a Growth Rank of 8/10, indicating strong growth potential. The company's 3-Year Revenue Growth Rate per Share is 49.60%, better than 92.61% of the companies in the industry. The 5-Year Revenue Growth Rate per Share is 34.80%, better than 93.16% of the companies. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 26.57%, better than 91.04% of the companies. However, the 3-Year EPS without NRI Growth Rate is -16.30%, better than only 24.15% of the companies, and the 5-Year EPS without NRI Growth Rate is -41.80%, better than just 3.17% of the companies. The EPS Growth Rate (Future 3Y To 5Y Est) is 44.06%, better than 93.39% of the companies. 
Major Stock Holders
The top three holders of Zscaler Inc's stock are Jim Simons (Trades, Portfolio), who holds 620,700 shares (0.43% share percentage), Ron Baron (Trades, Portfolio), who holds 128,952 shares (0.09% share percentage), and Ken Fisher (Trades, Portfolio), who holds 12,214 shares (0.01% share percentage).
Competitive Landscape
Zscaler Inc operates in a competitive industry, with major competitors including VeriSign Inc(VRSN, Financial) with a stock market cap of $21.34 billion, Fleetcor Technologies Inc(FLT, Financial) with a stock market cap of $18.78 billion, and Cloudflare Inc(NET, Financial) with a stock market cap of $21.22 billion.
Conclusion
In conclusion, Zscaler Inc has shown impressive stock performance over the past three months, with a significant increase in its stock price. Despite a lower profitability rank, the company has strong growth prospects, as indicated by its high growth rank and impressive revenue growth rates. However, the company faces stiff competition in the industry. With major stockholders like Jim Simons (Trades, Portfolio), Ron Baron (Trades, Portfolio), and Ken Fisher (Trades, Portfolio), Zscaler Inc is well-positioned for future growth.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
