CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
NASDAQ:CHKP - Nasdaq - IL0010824113 - Common Stock - Currency: USD
Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 284 industry peers in the Software industry. CHKP gets an excellent profitability rating and is at the same time showing great financial health properties. CHKP has a decent growth rate and is not valued too expensively. This makes CHKP very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year CHKP was profitable.
CHKP had a positive operating cash flow in the past year.
CHKP had positive earnings in each of the past 5 years.
In the past 5 years CHKP always reported a positive cash flow from operatings.
1.2 Ratios
CHKP's Return On Assets of 14.72% is amongst the best of the industry. CHKP outperforms 90.97% of its industry peers.
CHKP's Return On Equity of 30.32% is amongst the best of the industry. CHKP outperforms 91.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.96%, CHKP belongs to the top of the industry, outperforming 93.50% 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 12.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.72% | ||
| ROE | 30.32% | ||
| ROIC | 19.96% |
ROA(3y)14.47%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.08%
ROIC(5y)19.45%
1.3 Margins
Looking at the Profit Margin, with a value of 32.97%, CHKP belongs to the top of the industry, outperforming 94.22% of the companies in the same industry.
CHKP's Profit Margin has declined in the last couple of years.
CHKP's Operating Margin of 34.15% is amongst the best of the industry. CHKP outperforms 96.39% of its industry peers.
In the last couple of years the Operating Margin of CHKP has declined.
With an excellent Gross Margin value of 87.55%, CHKP belongs to the best of the industry, outperforming 93.14% of the companies in the same industry.
CHKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.15% | ||
| PM (TTM) | 32.97% | ||
| GM | 87.55% |
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
CHKP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CHKP has less shares outstanding
CHKP has less shares outstanding than it did 5 years ago.
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.
2.2 Solvency
CHKP has an Altman-Z score of 9.16. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
CHKP has a better Altman-Z score (9.16) than 77.26% of its industry peers.
CHKP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.16 |
ROIC/WACC2.19
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.13 indicates that CHKP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, CHKP is doing worse than 68.95% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that CHKP should not have too much problems paying its short term obligations.
The Quick ratio of CHKP (1.13) is worse than 68.23% of its industry peers.
The current and quick ratio evaluation for CHKP is rather negative, while it does have 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 | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.53% over the past year.
The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
Measured over the past years, CHKP shows a small growth in Revenue. The Revenue has been growing by 5.16% on average per year.
EPS 1Y (TTM)8.53%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%5.06%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.06%
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 11.65% yearly.
Based on estimates for the next years, CHKP will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y10.57%
EPS Next 2Y9.73%
EPS Next 3Y7.27%
EPS Next 5Y11.65%
Revenue Next Year6.2%
Revenue Next 2Y5.86%
Revenue Next 3Y5.95%
Revenue Next 5Y5.59%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.17, CHKP is valued on the expensive side.
CHKP's Price/Earnings ratio is rather cheap when compared to the industry. CHKP is cheaper than 80.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. CHKP is around the same levels.
CHKP is valuated rather expensively with a Price/Forward Earnings ratio of 20.96.
Based on the Price/Forward Earnings ratio, CHKP is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CHKP to the average of the S&P500 Index (92.74), we can say CHKP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 20.96 |
4.2 Price Multiples
CHKP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHKP is cheaper than 82.31% of the companies in the same industry.
85.20% 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 | 21.82 | ||
| EV/EBITDA | 22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)2.81
EPS Next 2Y9.73%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHECK POINT SOFTWARE TECH
NASDAQ:CHKP (2/4/2025, 8:00:00 PM)
Premarket: 211.98 -0.28 (-0.13%)212.26
-1.61 (-0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.66%
Inst Owner Change-0.97%
Ins Owners22.63%
Ins Owner ChangeN/A
Market Cap23.34B
Analysts69.55
Price Target201.79 (-4.93%)
Short Float %3.78%
Short Ratio4.66
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)-1.13%
Min EPS beat(2)-1.99%
Max EPS beat(2)-0.28%
EPS beat(4)0
Avg EPS beat(4)-0.98%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.23%
EPS beat(8)4
Avg EPS beat(8)0.43%
EPS beat(12)7
Avg EPS beat(12)0.75%
EPS beat(16)11
Avg EPS beat(16)1.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.63%
Revenue beat(12)0
Avg Revenue beat(12)-1.34%
Revenue beat(16)1
Avg Revenue beat(16)-1.19%
PT rev (1m)1.06%
PT rev (3m)1.33%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.17 | ||
| Fwd PE | 20.96 | ||
| P/S | 9.1 | ||
| P/FCF | 21.82 | ||
| P/OCF | 21.34 | ||
| P/B | 8.37 | ||
| P/tB | 26.16 | ||
| EV/EBITDA | 22 |
EPS(TTM)9.16
EY4.32%
EPS(NY)10.13
Fwd EY4.77%
FCF(TTM)9.73
FCFY4.58%
OCF(TTM)9.95
OCFY4.69%
SpS23.32
BVpS25.36
TBVpS8.11
PEG (NY)2.19
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.72% | ||
| ROE | 30.32% | ||
| ROCE | 23.06% | ||
| ROIC | 19.96% | ||
| ROICexc | 31.24% | ||
| ROICexgc | 143.02% | ||
| OM | 34.15% | ||
| PM (TTM) | 32.97% | ||
| GM | 87.55% | ||
| FCFM | 41.71% |
ROA(3y)14.47%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.08%
ROIC(5y)19.45%
ROICexc(3y)33.3%
ROICexc(5y)32.28%
ROICexgc(3y)126.26%
ROICexgc(5y)98.44%
ROCE(3y)23.2%
ROCE(5y)22.46%
ROICexcg growth 3Y31.08%
ROICexcg growth 5Y27.01%
ROICexc growth 3Y-0.27%
ROICexc growth 5Y2.68%
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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.95% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.01% | ||
| Profit Quality | 126.5% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 9.16 |
F-Score6
WACC9.11%
ROIC/WACC2.19
Cap/Depr(3y)43.08%
Cap/Depr(5y)50.45%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.87%
Profit Quality(3y)127.63%
Profit Quality(5y)132.68%
High Growth Momentum
Growth
EPS 1Y (TTM)8.53%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%5.06%
EPS Next Y10.57%
EPS Next 2Y9.73%
EPS Next 3Y7.27%
EPS Next 5Y11.65%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.06%
Revenue Next Year6.2%
Revenue Next 2Y5.86%
Revenue Next 3Y5.95%
Revenue Next 5Y5.59%
EBIT growth 1Y-2.57%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year7.42%
EBIT Next 3Y6.88%
EBIT Next 5YN/A
FCF growth 1Y4.95%
FCF growth 3Y-3.43%
FCF growth 5Y-0.16%
OCF growth 1Y5.41%
OCF growth 3Y-3.14%
OCF growth 5Y-0.19%