CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation

NASDAQ:CHKP • IL0010824113

Current stock price

148.23 USD
+2.47 (+1.69%)
At close:
148.23 USD
0 (0%)
After Hours:

This CHKP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. CHKP Profitability Analysis

1.1 Basic Checks

  • CHKP had positive earnings in the past year.
  • 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.
CHKP Yearly Net Income VS EBIT VS OCF VS FCFCHKP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.54%, CHKP belongs to the top of the industry, outperforming 91.27% of the companies in the same industry.
  • CHKP's Return On Equity of 36.67% is amongst the best of the industry. CHKP outperforms 93.09% of its industry peers.
  • CHKP has a better Return On Invested Capital (12.32%) than 88.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 10.93%.
  • 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 RankSector 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%
CHKP Yearly ROA, ROE, ROICCHKP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • The Profit Margin of CHKP (38.78%) is better than 94.55% of its industry peers.
  • CHKP's Profit Margin has been stable in the last couple of years.
  • CHKP has a better Operating Margin (30.49%) than 94.18% of its industry peers.
  • CHKP's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 86.72%, CHKP belongs to the top of the industry, outperforming 93.45% of the companies in the same industry.
  • CHKP's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CHKP Yearly Profit, Operating, Gross MarginsCHKP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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7

2. CHKP Health Analysis

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 about the same amount of shares outstanding.
  • The number of shares outstanding for CHKP has been reduced compared to 5 years ago.
  • CHKP has a worse debt/assets ratio than last year.
CHKP Yearly Shares OutstandingCHKP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CHKP Yearly Total Debt VS Total AssetsCHKP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 5.65 indicates that CHKP is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.65, CHKP is doing good in the industry, outperforming 78.91% of the companies in the same industry.
  • 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 68.73% of its industry peers.
  • A Debt/Equity ratio of 0.68 indicates that CHKP is somewhat dependend on debt financing.
  • CHKP has a worse Debt to Equity ratio (0.68) than 69.09% of its industry peers.
  • Although CHKP's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.68
Debt/FCF 1.59
Altman-Z 5.65
ROIC/WACC1.43
WACC8.6%
CHKP Yearly LT Debt VS Equity VS FCFCHKP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • CHKP has a Current Ratio of 2.05. This indicates that CHKP is financially healthy and has no problem in meeting its short term obligations.
  • CHKP has a Current ratio (2.05) which is in line with its industry peers.
  • A Quick Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
  • CHKP has a Quick ratio (2.05) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 2.05
CHKP Yearly Current Assets VS Current LiabilitesCHKP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. CHKP Growth Analysis

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.
  • The Revenue has been growing slightly by 6.25% in the past year.
  • Measured over the past years, CHKP shows a small growth in Revenue. The Revenue has been growing by 5.71% on average per year.
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 15.55% on average over the next years. This is quite good.
  • Based on estimates for the next years, CHKP will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y-10.66%
EPS Next 2Y-0.73%
EPS Next 3Y4.89%
EPS Next 5Y15.55%
Revenue Next Year6.11%
Revenue Next 2Y6.07%
Revenue Next 3Y6.41%
Revenue Next 5Y7.62%

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.
CHKP Yearly Revenue VS EstimatesCHKP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B 4B
CHKP Yearly EPS VS EstimatesCHKP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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6

4. CHKP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.44, CHKP is valued correctly.
  • Based on the Price/Earnings ratio, CHKP is valued cheaper than 86.18% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, CHKP is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 13.92, CHKP is valued correctly.
  • Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than 77.82% of the companies in the same industry.
  • CHKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.44
Fwd PE 13.92
CHKP Price Earnings VS Forward Price EarningsCHKP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 79.27% of the companies listed in the same industry.
  • 83.64% of the companies in the same industry are more expensive than CHKP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.84
EV/EBITDA 14.78
CHKP Per share dataCHKP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-0.73%
EPS Next 3Y4.89%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CHKP Dividend Analysis

5.1 Amount

  • CHKP does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

CHKP Fundamentals: All Metrics, Ratios and Statistics

CHECK POINT SOFTWARE TECH

NASDAQ:CHKP (4/2/2026, 8:14:06 PM)

After market: 148.23 0 (0%)

148.23

+2.47 (+1.69%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-21
Inst Owners77.44%
Inst Owner Change4.72%
Ins Owners23.17%
Ins Owner Change0%
Market Cap15.91B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts73.64
Price Target205.61 (38.71%)
Short Float %6.03%
Short Ratio3.79
Dividend
Industry RankSector 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)-7.73%
PT rev (3m)-10.22%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 12.44
Fwd PE 13.92
P/S 5.84
P/FCF 12.84
P/OCF 12.57
P/B 5.52
P/tB 20.84
EV/EBITDA 14.78
EPS(TTM)11.92
EY8.04%
EPS(NY)10.65
Fwd EY7.18%
FCF(TTM)11.54
FCFY7.79%
OCF(TTM)11.79
OCFY7.95%
SpS25.39
BVpS26.85
TBVpS7.11
PEG (NY)N/A
PEG (5Y)1.05
Graham Number84.86
Profitability
Industry RankSector 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 RankSector 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 5.65
F-Score5
WACC8.6%
ROIC/WACC1.43
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-10.66%
EPS Next 2Y-0.73%
EPS Next 3Y4.89%
EPS Next 5Y15.55%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y5.37%
Revenue growth 5Y5.71%
Sales Q2Q%5.85%
Revenue Next Year6.11%
Revenue Next 2Y6.07%
Revenue Next 3Y6.41%
Revenue Next 5Y7.62%
EBIT growth 1Y-5.13%
EBIT growth 3Y-2.05%
EBIT growth 5Y-1.67%
EBIT Next Year4.73%
EBIT Next 3Y2.53%
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 Fundamental Analysis FAQ

What is the fundamental rating for CHKP stock?

ChartMill assigns a fundamental rating of 7 / 10 to CHKP.


What is the valuation status of CHECK POINT SOFTWARE TECH (CHKP) stock?

ChartMill assigns a valuation rating of 6 / 10 to CHECK POINT SOFTWARE TECH (CHKP). This can be considered as Fairly Valued.


How profitable is CHECK POINT SOFTWARE TECH (CHKP) stock?

CHECK POINT SOFTWARE TECH (CHKP) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for CHKP stock?

The Price/Earnings (PE) ratio for CHECK POINT SOFTWARE TECH (CHKP) is 12.44 and the Price/Book (PB) ratio is 5.52.


Can you provide the financial health for CHKP stock?

The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 7 / 10.