CHECK POINT SOFTWARE TECH (CHKP)
IL0010824113 - Common Stock
Overall CHKP gets a fundamental rating of 7 out of 10. We evaluated CHKP against 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 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.
Each year in the past 5 years CHKP had a positive operating cash flow.
1.2 Ratios
CHKP has a Return On Assets of 15.19%. This is amongst the best in the industry. CHKP outperforms 91.21% of its industry peers.
Looking at the Return On Equity, with a value of 29.60%, CHKP belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
CHKP's Return On Invested Capital of 19.78% is amongst the best of the industry. CHKP outperforms 93.04% 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 12.15%.
The last Return On Invested Capital (19.78%) for CHKP is above the 3 year average (19.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 29.6% | ||
| ROIC | 19.78% |
ROA(3y)14.17%
ROA(5y)14.26%
ROE(3y)27.34%
ROE(5y)25.92%
ROIC(3y)19.55%
ROIC(5y)18.82%
1.3 Margins
With an excellent Profit Margin value of 33.17%, CHKP belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
CHKP's Profit Margin has declined in the last couple of years.
CHKP's Operating Margin of 34.60% is amongst the best of the industry. CHKP outperforms 96.34% of its industry peers.
CHKP's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 87.70%, CHKP belongs to the best of the industry, outperforming 93.04% 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 | 34.6% | ||
| PM (TTM) | 33.17% | ||
| GM | 87.7% |
OM growth 3Y-5.26%
OM growth 5Y-4.83%
PM growth 3Y-5.32%
PM growth 5Y-4.08%
GM growth 3Y-0.28%
GM growth 5Y-0.27%
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 9.12 indicates that CHKP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 9.12, CHKP is doing good in the industry, outperforming 78.75% 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 | 9.12 |
ROIC/WACC2.11
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CHKP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, CHKP is not doing good in the industry: 69.96% of the companies in the same industry are doing better.
CHKP has a Quick Ratio of 1.14. This is a normal value and indicates that CHKP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.14, CHKP is not doing good in the industry: 69.60% of the companies in the same industry are doing better.
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 | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
CHKP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.53%, which is quite good.
The Earnings Per Share has been growing by 8.05% 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 5.65%.
Measured over the past years, CHKP shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
EPS 1Y (TTM)8.53%
EPS 3Y7.42%
EPS 5Y8.05%
EPS Q2Q%8.7%
Revenue 1Y (TTM)5.65%
Revenue growth 3Y5.35%
Revenue growth 5Y4.73%
Sales Q2Q%6.51%
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 11.22% on average per year.
The Revenue is expected to grow by 5.59% on average over the next years.
EPS Next Y10%
EPS Next 2Y9.64%
EPS Next 3Y9.51%
EPS Next 5Y11.22%
Revenue Next Year6.1%
Revenue Next 2Y5.86%
Revenue Next 3Y5.67%
Revenue Next 5Y5.59%
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 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 20.44, the valuation of CHKP can be described as rather expensive.
Based on the Price/Earnings ratio, CHKP is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
CHKP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.19 indicates a rather expensive valuation of CHKP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 81.32% of the companies listed in the same industry.
CHKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 83.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CHKP is valued cheaply inside the industry as 88.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.27 | ||
| EV/EBITDA | 19.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)2.54
EPS Next 2Y9.64%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CHECK POINT SOFTWARE TECH
NASDAQ:CHKP (1/2/2025, 8:20:25 PM)
After market: 184.4 -0.18 (-0.1%)184.58
-2.12 (-1.14%)
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 Cap20.30B
Analysts70.23
Price Target199.67 (8.18%)
Short Float %3.55%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-1.7%
Min EPS beat(2)-1.99%
Max EPS beat(2)-1.42%
EPS beat(4)1
Avg EPS beat(4)-0.47%
Min EPS beat(4)-1.99%
Max EPS beat(4)1.77%
EPS beat(8)5
Avg EPS beat(8)0.72%
EPS beat(12)8
Avg EPS beat(12)1.11%
EPS beat(16)12
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.29%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)1
Avg Revenue beat(12)-1.18%
Revenue beat(16)1
Avg Revenue beat(16)-1.14%
PT rev (1m)0.64%
PT rev (3m)0.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 18.19 | ||
| P/S | 8.04 | ||
| P/FCF | 19.27 | ||
| P/OCF | 18.86 | ||
| P/B | 7.18 | ||
| P/tB | 21.87 | ||
| EV/EBITDA | 19.08 |
EPS(TTM)9.03
EY4.89%
EPS(NY)10.15
Fwd EY5.5%
FCF(TTM)9.58
FCFY5.19%
OCF(TTM)9.78
OCFY5.3%
SpS22.96
BVpS25.72
TBVpS8.44
PEG (NY)2.04
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 29.6% | ||
| ROCE | 23.01% | ||
| ROIC | 19.78% | ||
| ROICexc | 32.28% | ||
| ROICexgc | 176.07% | ||
| OM | 34.6% | ||
| PM (TTM) | 33.17% | ||
| GM | 87.7% | ||
| FCFM | 41.73% |
ROA(3y)14.17%
ROA(5y)14.26%
ROE(3y)27.34%
ROE(5y)25.92%
ROIC(3y)19.55%
ROIC(5y)18.82%
ROICexc(3y)33.16%
ROICexc(5y)31.3%
ROICexgc(3y)99.08%
ROICexgc(5y)77.97%
ROCE(3y)22.74%
ROCE(5y)21.89%
ROICexcg growth 3Y45.98%
ROICexcg growth 5Y28.05%
ROICexc growth 3Y4.85%
ROICexc growth 5Y3.72%
OM growth 3Y-5.26%
OM growth 5Y-4.83%
PM growth 3Y-5.32%
PM growth 5Y-4.08%
GM growth 3Y-0.28%
GM growth 5Y-0.27%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.98% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.18% | ||
| Profit Quality | 125.83% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 9.12 |
F-Score7
WACC9.36%
ROIC/WACC2.11
Cap/Depr(3y)50.69%
Cap/Depr(5y)66.24%
Cap/Sales(3y)0.82%
Cap/Sales(5y)0.94%
Profit Quality(3y)134.01%
Profit Quality(5y)133.5%
High Growth Momentum
Growth
EPS 1Y (TTM)8.53%
EPS 3Y7.42%
EPS 5Y8.05%
EPS Q2Q%8.7%
EPS Next Y10%
EPS Next 2Y9.64%
EPS Next 3Y9.51%
EPS Next 5Y11.22%
Revenue 1Y (TTM)5.65%
Revenue growth 3Y5.35%
Revenue growth 5Y4.73%
Sales Q2Q%6.51%
Revenue Next Year6.1%
Revenue Next 2Y5.86%
Revenue Next 3Y5.67%
Revenue Next 5Y5.59%
EBIT growth 1Y-3.08%
EBIT growth 3Y-0.19%
EBIT growth 5Y-0.32%
EBIT Next Year5.51%
EBIT Next 3Y5.01%
EBIT Next 5Y2.67%
FCF growth 1Y1.62%
FCF growth 3Y-3.71%
FCF growth 5Y-1.98%
OCF growth 1Y1.81%
OCF growth 3Y-3.67%
OCF growth 5Y-1.92%