184.34 USD
-1.56 (-0.84%)
184.34 USD
0 (0%)
Overall CHKP gets a fundamental rating of 7 out of 10. We evaluated CHKP against 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making CHKP a very profitable company, without any liquidiy or solvency issues. CHKP may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, CHKP could be worth investigating further for value and 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.
In the past 5 years CHKP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHKP (17.72%) is better than 92.86% of its industry peers.
With an excellent Return On Equity value of 32.79%, CHKP belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
The Return On Invested Capital of CHKP (18.51%) is better than 93.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHKP is significantly above the industry average of 11.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.72% | ||
| ROE | 32.79% | ||
| ROIC | 18.51% |
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
The Profit Margin of CHKP (37.62%) is better than 93.57% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 31.76%, CHKP belongs to the top of the industry, outperforming 93.93% of the companies in the same industry.
CHKP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 86.81%, CHKP belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
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 | 31.76% | ||
| PM (TTM) | 37.62% | ||
| GM | 86.81% |
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.
The number of shares outstanding for CHKP has been reduced compared to 1 year ago.
Compared to 5 years ago, CHKP has less shares outstanding
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
An Altman-Z score of 9.27 indicates that CHKP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.27, CHKP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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 | 9.27 |
ROIC/WACC2.1
WACC8.82%
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.
CHKP has a worse Current ratio (1.19) than 65.71% of its industry peers.
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.
CHKP has a worse Quick ratio (1.19) than 64.64% 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 | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.25% over the past year.
The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.31% in the past year.
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)24.25%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%75.11%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
3.2 Future
Based on estimates for the next years, CHKP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.82% on average per year.
CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
Revenue Next 5Y6.81%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.43, CHKP is valued correctly.
79.29% of the companies in the same industry are more expensive than CHKP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.15, CHKP is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.11 indicates a rather expensive valuation of CHKP.
Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.12. CHKP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 17.11 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than CHKP, based on the Enterprise Value to EBITDA ratio.
CHKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CHKP is cheaper than 80.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.84 | ||
| EV/EBITDA | 18.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)1.99
EPS Next 2Y8.46%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
184.34
-1.56 (-0.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change-1.61%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap19.98B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts72.73
Price Target231.64 (25.66%)
Short Float %4.38%
Short Ratio4.53
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)1
Avg EPS beat(2)27.94%
Min EPS beat(2)-1.7%
Max EPS beat(2)57.59%
EPS beat(4)1
Avg EPS beat(4)13.68%
Min EPS beat(4)-1.7%
Max EPS beat(4)57.59%
EPS beat(8)2
Avg EPS beat(8)6.61%
EPS beat(12)6
Avg EPS beat(12)5.04%
EPS beat(16)9
Avg EPS beat(16)4.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)1
Avg Revenue beat(16)-1.24%
PT rev (1m)1.88%
PT rev (3m)0.51%
EPS NQ rev (1m)-4.04%
EPS NQ rev (3m)-4.05%
EPS NY rev (1m)12.14%
EPS NY rev (3m)12.33%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 17.11 | ||
| P/S | 7.44 | ||
| P/FCF | 17.84 | ||
| P/OCF | 17.43 | ||
| P/B | 6.49 | ||
| P/tB | 17.37 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)11.22
EY6.09%
EPS(NY)10.77
Fwd EY5.85%
FCF(TTM)10.33
FCFY5.61%
OCF(TTM)10.57
OCFY5.74%
SpS24.77
BVpS28.42
TBVpS10.61
PEG (NY)0.69
PEG (5Y)1.99
Graham Number84.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.72% | ||
| ROE | 32.79% | ||
| ROCE | 21.38% | ||
| ROIC | 18.51% | ||
| ROICexc | 29.31% | ||
| ROICexgc | 125.46% | ||
| OM | 31.76% | ||
| PM (TTM) | 37.62% | ||
| GM | 86.81% | ||
| FCFM | 41.72% |
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%
ROICexgc growth 3Y30.18%
ROICexgc 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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 25.75% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.22% | ||
| Profit Quality | 110.89% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 9.27 |
F-Score8
WACC8.82%
ROIC/WACC2.1
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)24.25%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%75.11%
EPS Next Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
Revenue Next 5Y6.81%
EBIT growth 1Y-2.4%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year6.62%
EBIT Next 3Y5.34%
EBIT Next 5Y5.39%
FCF growth 1Y-5.59%
FCF growth 3Y-4.7%
FCF growth 5Y-0.95%
OCF growth 1Y-5.04%
OCF growth 3Y-4.38%
OCF growth 5Y-0.96%
CHECK POINT SOFTWARE TECH / CHKP FAQ
What is the fundamental rating for CHKP stock?
ChartMill assigns a fundamental rating of 7 / 10 to CHKP.
What is the valuation status for CHKP stock?
ChartMill assigns a valuation rating of 7 / 10 to CHECK POINT SOFTWARE TECH (CHKP). This can be considered as Undervalued.
What is the profitability of CHKP stock?
CHECK POINT SOFTWARE TECH (CHKP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CHECK POINT SOFTWARE TECH (CHKP) stock?
The Price/Earnings (PE) ratio for CHECK POINT SOFTWARE TECH (CHKP) is 16.43 and the Price/Book (PB) ratio is 6.49.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.