Zscaler Stock Fair Value – ZSCALER Reports Q4 FY2023 Earnings of USD 455 Million, up 43.1% YoY
September 20, 2023
🌥️Earnings Overview
On July 31 2023, ZSCALER ($NASDAQ:ZS) reported its fourth quarter FY2023 earnings results, with total revenue of USD 455.0 million, an increase of 43.1% compared to the same period in the previous year. Net income for the fourth quarter was reported at USD -30.7 million, an improvement from the previous year’s -97.6 million.
Analysis – Zscaler Stock Fair Value
GoodWhale recently conducted an analysis on the wellbeing of ZSCALER Inc., a cloud security company. Using our proprietary Valuation Line, we have calculated the intrinsic value of ZSCALER shares at $332.6. This indicates that currently, the stock is trading at $162.7, far below its intrinsic value and undervalued by 51.1%. This suggests that investors would be wise to consider buying ZSCALER shares at the current market price. With a strong company strategy, robust infrastructure, and experienced leadership team, ZSCALER is a great long-term investment opportunity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Zscaler. ZSCALER_Reports_Q4_FY2023_Earnings_of_USD_455_Million_up_43.1_YoY”>More…
| Total Revenues | Net Income | Net Margin |
| 1.62k | -202.34 | -12.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Zscaler. ZSCALER_Reports_Q4_FY2023_Earnings_of_USD_455_Million_up_43.1_YoY”>More…
| Operations | Investing | Financing |
| 462.34 | -259.34 | 45.99 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Zscaler. ZSCALER_Reports_Q4_FY2023_Earnings_of_USD_455_Million_up_43.1_YoY”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.61k | 2.88k | 4.97 |
Key Ratios Snapshot
Some of the financial key ratios for Zscaler are shown below. ZSCALER_Reports_Q4_FY2023_Earnings_of_USD_455_Million_up_43.1_YoY”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.4% | – | -10.9% |
| FCF Margin | ROE | ROA |
| 20.6% | -16.6% | -3.0% |
Peers
In the cyber security industry, there is intense competition between Zscaler Inc and its main rivals, CrowdStrike Holdings Inc, Palo Alto Networks Inc, and Fortinet Inc. All four companies are constantly innovating and developing new products and services in order to stay ahead of the competition and provide the best possible protection for their customers. While each company has its own strengths and weaknesses, it is clear that Zscaler is a leading player in the industry and its competitors are constantly trying to catch up.
– CrowdStrike Holdings Inc ($NASDAQ:CRWD)
CrowdStrike Holdings Inc is a provider of security technology and services. The company has a market cap of 36.61B as of 2022 and a return on equity of -6.41%. The company provides a cloud-based platform that helps organizations to prevent, detect, and respond to cyber threats. The company offers a range of services, including managed detection and response, incident response, and threat intelligence.
– Palo Alto Networks Inc ($NASDAQ:PANW)
Palo Alto Networks Inc is a global cybersecurity company with a market cap of 47.91B as of 2022 and a Return on Equity of -42.69%. The company provides a range of security products and services, including firewall and endpoint security products, to help enterprises protect their networks and data from cyber threats. Palo Alto Networks has a diversified customer base, including small and medium-sized businesses, large enterprises, and government agencies.
– Fortinet Inc ($NASDAQ:FTNT)
Fortinet Inc is a cybersecurity company that provides network security products and services. The company has a market cap of 40.84B as of 2022 and a Return on Equity of -502.78%. Fortinet’s products and services include firewall, intrusion detection and prevention, and virtual private network (VPN) products. The company offers its products and services to enterprises, service providers, and government organizations worldwide.
Summary
Investors are reacting positively to ZSCALER‘s fourth quarter of FY2023 financial results, with total revenue up 43.1% year over year. The company’s net income also improved, from a loss of -97.6 million to -30.7 million in the same period. Analysts are bullish on the stock, as the strong earnings report suggests that ZSCALER is well-positioned for growth in the coming quarters. With its highly competitive product offering, experienced management team, and strong customer base, ZSCALER appears to be a strong investment opportunity for long-term investors.
