CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
196.62 USD
+0.08 (+0.04%)
Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 280 industry peers in the Software industry. CHKP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHKP has a correct valuation and a medium growth rate. These ratings could make CHKP a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
CHKP had positive earnings in the past year.
CHKP had a positive operating cash flow in the past year.
Each year in the past 5 years CHKP has been profitable.
CHKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHKP's Return On Assets of 15.09% is amongst the best of the industry. CHKP outperforms 91.79% of its industry peers.
With an excellent Return On Equity value of 30.27%, CHKP belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.22%, CHKP belongs to the best of the industry, outperforming 93.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.09% | ||
| ROE | 30.27% | ||
| ROIC | 19.22% |
ROA(3y)14.46%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.07%
ROIC(5y)19.43%
1.3 Margins
CHKP has a better Profit Margin (32.48%) than 92.14% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
The Operating Margin of CHKP (33.00%) is better than 94.29% of its industry peers.
In the last couple of years the Operating Margin of CHKP has declined.
CHKP has a better Gross Margin (86.92%) than 94.29% of its industry peers.
In the last couple of years the Gross Margin of CHKP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 32.48% | ||
| GM | 86.92% |
OM growth 3Y-6.58%
OM growth 5Y-5.03%
PM growth 3Y-4.32%
PM growth 5Y-4.45%
GM growth 3Y-0.2%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHKP is creating value.
The number of shares outstanding for CHKP has been reduced compared to 1 year ago.
The number of shares outstanding for CHKP has been reduced compared to 5 years ago.
CHKP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 9.07 indicates that CHKP is not in any danger for bankruptcy at the moment.
CHKP has a Altman-Z score of 9.07. This is amongst the best in the industry. CHKP outperforms 83.21% of its industry peers.
There is no outstanding debt for CHKP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.07 |
ROIC/WACC2.15
WACC8.96%
2.3 Liquidity
CHKP has a Current Ratio of 1.19. This is a normal value and indicates that CHKP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.19, CHKP is doing worse than 63.21% of the companies in the same industry.
CHKP has a Quick Ratio of 1.19. This is a normal value and indicates that CHKP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CHKP (1.19) is worse than 62.86% of its industry peers.
CHKP does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
CHKP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.68%.
CHKP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.26% yearly.
CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.27%.
CHKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
EPS 1Y (TTM)7.68%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%9.22%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
3.2 Future
CHKP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.82% yearly.
CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y10.23%
EPS Next 2Y9.22%
EPS Next 3Y9.68%
EPS Next 5Y11.82%
Revenue Next Year6.2%
Revenue Next 2Y5.9%
Revenue Next 3Y5.86%
Revenue Next 5Y6.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.63 indicates a rather expensive valuation of CHKP.
CHKP's Price/Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 75.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. CHKP is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.00, the valuation of CHKP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. CHKP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 18 |
4.2 Price Multiples
CHKP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHKP is cheaper than 81.79% of the companies in the same industry.
83.21% of the companies in the same industry are more expensive than CHKP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.31 | ||
| EV/EBITDA | 19.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHKP does not grow enough to justify the current Price/Earnings ratio.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)2.5
EPS Next 2Y9.22%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CHKP (9/18/2025, 2:37:41 PM)
196.62
+0.08 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.34%
Inst Owner Change-1.59%
Ins Owners22.96%
Ins Owner ChangeN/A
Market Cap21.31B
Analysts73.04
Price Target227.36 (15.63%)
Short Float %3.89%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.29%
Min EPS beat(2)-1.7%
Max EPS beat(2)-0.88%
EPS beat(4)0
Avg EPS beat(4)-1.21%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.28%
EPS beat(8)2
Avg EPS beat(8)-0.53%
EPS beat(12)6
Avg EPS beat(12)0.55%
EPS beat(16)9
Avg EPS beat(16)0.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.47%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.23%
PT rev (1m)-1.35%
PT rev (3m)-5.57%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 18 | ||
| P/S | 8.07 | ||
| P/FCF | 18.31 | ||
| P/OCF | 17.93 | ||
| P/B | 7.52 | ||
| P/tB | 24.05 | ||
| EV/EBITDA | 19.53 |
EPS(TTM)9.53
EY4.85%
EPS(NY)10.93
Fwd EY5.56%
FCF(TTM)10.74
FCFY5.46%
OCF(TTM)10.97
OCFY5.58%
SpS24.38
BVpS26.16
TBVpS8.17
PEG (NY)2.02
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.09% | ||
| ROE | 30.27% | ||
| ROCE | 22.21% | ||
| ROIC | 19.22% | ||
| ROICexc | 31.42% | ||
| ROICexgc | 166.54% | ||
| OM | 33% | ||
| PM (TTM) | 32.48% | ||
| GM | 86.92% | ||
| FCFM | 44.06% |
ROA(3y)14.46%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.07%
ROIC(5y)19.43%
ROICexc(3y)33.25%
ROICexc(5y)32.25%
ROICexgc(3y)125.28%
ROICexgc(5y)97.86%
ROCE(3y)23.18%
ROCE(5y)22.45%
ROICexcg growth 3Y30.18%
ROICexcg growth 5Y26.49%
ROICexc growth 3Y-0.42%
ROICexc growth 5Y2.59%
OM growth 3Y-6.58%
OM growth 5Y-5.03%
PM growth 3Y-4.32%
PM growth 5Y-4.45%
GM growth 3Y-0.2%
GM growth 5Y-0.37%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 26.44% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.09% | ||
| Profit Quality | 135.64% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 9.07 |
F-Score7
WACC8.96%
ROIC/WACC2.15
Cap/Depr(3y)43.08%
Cap/Depr(5y)50.45%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.87%
Profit Quality(3y)125.99%
Profit Quality(5y)131.69%
High Growth Momentum
Growth
EPS 1Y (TTM)7.68%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%9.22%
EPS Next Y10.23%
EPS Next 2Y9.22%
EPS Next 3Y9.68%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
Revenue Next Year6.2%
Revenue Next 2Y5.9%
Revenue Next 3Y5.86%
Revenue Next 5Y6.81%
EBIT growth 1Y-1.04%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year5.55%
EBIT Next 3Y5.02%
EBIT Next 5Y5.86%
FCF growth 1Y0.42%
FCF growth 3Y-4.7%
FCF growth 5Y-0.95%
OCF growth 1Y0.95%
OCF growth 3Y-4.38%
OCF growth 5Y-0.96%