CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
NASDAQ:CHKP • IL0010824113
152.44 USD
-2.29 (-1.48%)
At close: Feb 24, 2026
152.45 USD
+0.01 (+0.01%)
After Hours: 2/24/2026, 8:15:35 PM
CHKP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 274 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make CHKP suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year CHKP was profitable.
- In the past year CHKP had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 13.54%, CHKP belongs to the best of the industry, outperforming 91.24% of the companies in the same industry.
- CHKP has a better Return On Equity (36.67%) than 93.43% of its industry peers.
- CHKP's Return On Invested Capital of 12.32% is amongst the best of the industry. CHKP outperforms 87.23% 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 10.77%.
- The 3 year average ROIC (17.67%) for CHKP is well above the current ROIC(12.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 36.67% | ||
| ROIC | 12.32% |
ROA(3y)14.33%
ROA(5y)14.15%
ROE(3y)32.26%
ROE(5y)29.8%
ROIC(3y)17.67%
ROIC(5y)18.33%
1.3 Margins
- CHKP has a Profit Margin of 38.78%. This is amongst the best in the industry. CHKP outperforms 92.70% of its industry peers.
- CHKP's Profit Margin has been stable in the last couple of years.
- CHKP's Operating Margin of 30.49% is amongst the best of the industry. CHKP outperforms 92.34% of its industry peers.
- CHKP's Operating Margin has declined in the last couple of years.
- CHKP's Gross Margin of 86.72% is amongst the best of the industry. CHKP outperforms 93.07% of its industry peers.
- CHKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.49% | ||
| PM (TTM) | 38.78% | ||
| GM | 86.72% |
OM growth 3Y-7.03%
OM growth 5Y-6.98%
PM growth 3Y4.27%
PM growth 5Y-1.11%
GM growth 3Y-0.08%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHKP is creating value.
- The number of shares outstanding for CHKP remains at a similar level compared to 1 year ago.
- CHKP has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CHKP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.71 indicates that CHKP is not in any danger for bankruptcy at the moment.
- CHKP has a Altman-Z score of 5.71. This is amongst the best in the industry. CHKP outperforms 80.66% of its industry peers.
- The Debt to FCF ratio of CHKP is 1.59, which is an excellent value as it means it would take CHKP, only 1.59 years of fcf income to pay off all of its debts.
- CHKP has a better Debt to FCF ratio (1.59) than 69.71% of its industry peers.
- CHKP has a Debt/Equity ratio of 0.68. This is a neutral value indicating CHKP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.68, CHKP is doing worse than 70.80% of the companies in the same industry.
- Although CHKP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 5.71 |
ROIC/WACC1.41
WACC8.71%
2.3 Liquidity
- A Current Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.05, CHKP is in line with its industry, outperforming 59.85% of the companies in the same industry.
- CHKP has a Quick Ratio of 2.05. This indicates that CHKP is financially healthy and has no problem in meeting its short term obligations.
- CHKP's Quick ratio of 2.05 is fine compared to the rest of the industry. CHKP outperforms 60.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
- CHKP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.13%, which is quite impressive.
- Measured over the past years, CHKP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.85% on average per year.
- Looking at the last year, CHKP shows a small growth in Revenue. The Revenue has grown by 6.25% in the last year.
- The Revenue has been growing slightly by 5.71% on average over the past years.
EPS 1Y (TTM)30.13%
EPS 3Y17.01%
EPS 5Y11.85%
EPS Q2Q%25.93%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y5.37%
Revenue growth 5Y5.71%
Sales Q2Q%5.85%
3.2 Future
- The Earnings Per Share is expected to grow by 8.31% on average over the next years. This is quite good.
- CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.54% yearly.
EPS Next Y-10.43%
EPS Next 2Y-0.23%
EPS Next 3Y4.08%
EPS Next 5Y8.31%
Revenue Next Year6.11%
Revenue Next 2Y6.06%
Revenue Next 3Y6.34%
Revenue Next 5Y6.54%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.79, the valuation of CHKP can be described as correct.
- 81.39% of the companies in the same industry are more expensive than CHKP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of CHKP to the average of the S&P500 Index (26.98), we can say CHKP is valued rather cheaply.
- With a Price/Forward Earnings ratio of 14.28, CHKP is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 75.18% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. CHKP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 78.10% of the companies listed in the same industry.
- 83.58% 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 | 13.21 | ||
| EV/EBITDA | 15.27 |
4.3 Compensation for Growth
- The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-0.23%
EPS Next 3Y4.08%
5. Dividend
5.1 Amount
- No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
152.44
-2.29 (-1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12 2026-02-12/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners72.59%
Inst Owner Change4.67%
Ins Owners23.17%
Ins Owner ChangeN/A
Market Cap16.36B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts72.73
Price Target225.73 (48.08%)
Short Float %7.4%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)39.07%
Min EPS beat(2)20.55%
Max EPS beat(2)57.59%
EPS beat(4)2
Avg EPS beat(4)18.89%
Min EPS beat(4)-1.7%
Max EPS beat(4)57.59%
EPS beat(8)2
Avg EPS beat(8)8.96%
EPS beat(12)6
Avg EPS beat(12)6.59%
EPS beat(16)9
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)-1.33%
Revenue beat(8)0
Avg Revenue beat(8)-1.55%
Revenue beat(12)0
Avg Revenue beat(12)-1.63%
Revenue beat(16)0
Avg Revenue beat(16)-1.42%
PT rev (1m)-1.97%
PT rev (3m)-0.54%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 14.28 | ||
| P/S | 6 | ||
| P/FCF | 13.21 | ||
| P/OCF | 12.93 | ||
| P/B | 5.68 | ||
| P/tB | 21.43 | ||
| EV/EBITDA | 15.27 |
EPS(TTM)11.92
EY7.82%
EPS(NY)10.68
Fwd EY7%
FCF(TTM)11.54
FCFY7.57%
OCF(TTM)11.79
OCFY7.73%
SpS25.39
BVpS26.85
TBVpS7.11
PEG (NY)N/A
PEG (5Y)1.08
Graham Number84.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 36.67% | ||
| ROCE | 14.16% | ||
| ROIC | 12.32% | ||
| ROICexc | 25.33% | ||
| ROICexgc | 98.2% | ||
| OM | 30.49% | ||
| PM (TTM) | 38.78% | ||
| GM | 86.72% | ||
| FCFM | 45.46% |
ROA(3y)14.33%
ROA(5y)14.15%
ROE(3y)32.26%
ROE(5y)29.8%
ROIC(3y)17.67%
ROIC(5y)18.33%
ROICexc(3y)30.45%
ROICexc(5y)31.45%
ROICexgc(3y)131.72%
ROICexgc(5y)107.95%
ROCE(3y)20.31%
ROCE(5y)21.07%
ROICexgc growth 3Y6.73%
ROICexgc growth 5Y14.36%
ROICexc growth 3Y-9.55%
ROICexc growth 5Y-3.44%
OM growth 3Y-7.03%
OM growth 5Y-6.98%
PM growth 3Y4.27%
PM growth 5Y-1.11%
GM growth 3Y-0.08%
GM growth 5Y-0.52%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 28.63% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.96% | ||
| Profit Quality | 117.22% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 5.71 |
F-Score5
WACC8.71%
ROIC/WACC1.41
Cap/Depr(3y)32.27%
Cap/Depr(5y)41.93%
Cap/Sales(3y)0.9%
Cap/Sales(5y)0.87%
Profit Quality(3y)120.03%
Profit Quality(5y)128.17%
High Growth Momentum
Growth
EPS 1Y (TTM)30.13%
EPS 3Y17.01%
EPS 5Y11.85%
EPS Q2Q%25.93%
EPS Next Y-10.43%
EPS Next 2Y-0.23%
EPS Next 3Y4.08%
EPS Next 5Y8.31%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y5.37%
Revenue growth 5Y5.71%
Sales Q2Q%5.85%
Revenue Next Year6.11%
Revenue Next 2Y6.06%
Revenue Next 3Y6.34%
Revenue Next 5Y6.54%
EBIT growth 1Y-5.13%
EBIT growth 3Y-2.05%
EBIT growth 5Y-1.67%
EBIT Next Year6.02%
EBIT Next 3Y6.36%
EBIT Next 5YN/A
FCF growth 1Y20.49%
FCF growth 3Y4.8%
FCF growth 5Y1.65%
OCF growth 1Y20.25%
OCF growth 3Y4.83%
OCF growth 5Y1.74%
CHECK POINT SOFTWARE TECH / CHKP FAQ
What is the fundamental rating for CHKP stock?
ChartMill assigns a fundamental rating of 7 / 10 to CHKP.
Can you provide the valuation status for CHECK POINT SOFTWARE TECH?
ChartMill assigns a valuation rating of 6 / 10 to CHECK POINT SOFTWARE TECH (CHKP). This can be considered as Fairly Valued.
What is the profitability of CHKP stock?
CHECK POINT SOFTWARE TECH (CHKP) has a profitability rating of 9 / 10.
What is the valuation of CHECK POINT SOFTWARE TECH based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHECK POINT SOFTWARE TECH (CHKP) is 12.79 and the Price/Book (PB) ratio is 5.68.
Can you provide the expected EPS growth for CHKP stock?
The Earnings per Share (EPS) of CHECK POINT SOFTWARE TECH (CHKP) is expected to decline by -10.43% in the next year.