Is Zscaler, Inc. (ZS) Halal?
Shariah Screening — 5 Standards
Based on financial data from July 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 6.8% / 30% | 13.5% / 30% | 3.8% / 30% | 4.69% / 5% | ✓ HALAL |
| DJIM | 6.8% / 33% | 13.5% / 33% | 3.8% / 33% | 4.69% / 5% | ✓ HALAL |
| MSCI | 28.0% / 33% | 55.6% / 33% | 15.5% / 33% | 4.69% / 5% | ✗ NOT HALAL |
| S&P | 6.8% / 33% | 13.5% / 33% | 3.8% / 33% | 4.69% / 5% | ✓ HALAL |
| FTSE | 28.0% / 33% | 55.6% / 33% | 15.5% / 50% | 4.69% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 76.6% | |
| Operating Margin | -6.2% | |
| Net Margin | -2.3% | |
| Return on Equity (ROE) | -3.6% | |
| Return on Assets (ROA) | -1.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $972M |
| Free Cash Flow | $727M |
| Total Debt | $1.8B |
| Debt-to-Equity | 85.0 |
| Current Ratio | 1.9 |
| Total Assets | $6.4B |
Price & Trading
| Last Close | $141.50 |
| 50-Day MA | $171.19 |
| 200-Day MA | $254.25 |
| Avg Volume | 2.5M |
| Beta | 1.1 |
|
52-Week Range
$128.00
| |
About Zscaler, Inc. (ZS)
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and 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. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, 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.
Purification Calculator
As a halal stock with 4.69% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Zscaler, Inc. (ZS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Zscaler, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Zscaler, Inc.'s debt ratio?
Zscaler, Inc.'s debt ratio is 6.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 28.0%.
Does Zscaler, Inc. require dividend purification?
Yes, Zscaler, Inc. has an impermissible income ratio of 4.69%, which means 4.69% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Zscaler, Inc.'s key financial metrics?
Zscaler, Inc. has a market capitalization of $21.4B, and revenue of $2.7B. The company maintains a gross margin of 76.6% and a net margin of -2.3%. Return on equity stands at -3.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.