CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation

NASDAQ:CHKP • IL0010824113

Current stock price

152.83 USD
-0.82 (-0.53%)
At close:
152.83 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.
  • 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.
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

  • CHKP has a Return On Assets of 13.54%. This is amongst the best in the industry. CHKP outperforms 91.34% of its industry peers.
  • The Return On Equity of CHKP (36.67%) is better than 93.14% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.32%, CHKP belongs to the top of the industry, outperforming 89.17% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CHKP is significantly above the industry average of 10.87%.
  • 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

  • CHKP's Profit Margin of 38.78% is amongst the best of the industry. CHKP outperforms 94.22% of its industry peers.
  • CHKP's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 30.49%, CHKP belongs to the top of the industry, outperforming 94.22% 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 86.72%, CHKP belongs to the top of the industry, outperforming 93.50% 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. CHKP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHKP is creating value.
  • CHKP has about the same amout of shares outstanding than it did 1 year ago.
  • 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

  • CHKP has an Altman-Z score of 5.72. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.72, CHKP is in the better half of the industry, outperforming 79.42% of the companies in the same industry.
  • CHKP has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 1.59, CHKP is doing good in the industry, outperforming 69.68% of the companies in the same industry.
  • A Debt/Equity ratio of 0.68 indicates that CHKP is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.68, CHKP is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
  • 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 5.72
ROIC/WACC1.39
WACC8.88%
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.
  • Looking at the Current ratio, with a value of 2.05, CHKP is in line with its industry, outperforming 58.84% 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 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.
  • The Earnings Per Share has been growing by 11.85% 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 6.25%.
  • 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

  • CHKP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.55% yearly.
  • CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
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

  • 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.
  • 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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Find the best growth stocksShow best growing peers

6

4. CHKP Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.82, the valuation of CHKP can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 83.75% of the companies listed in the same industry.
  • CHKP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
  • With a Price/Forward Earnings ratio of 14.35, CHKP is valued correctly.
  • 76.53% of the companies in the same industry are more expensive than CHKP, based on the Price/Forward Earnings ratio.
  • CHKP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
Industry RankSector Rank
PE 12.82
Fwd PE 14.35
CHKP Price Earnings VS Forward Price EarningsCHKP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than 79.42% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CHKP is valued cheaper than 83.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.24
EV/EBITDA 15.41
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

  • The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
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

  • No dividends for CHKP!.
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 (3/16/2026, 4:30:00 PM)

After market: 152.83 0 (0%)

152.83

-0.82 (-0.53%)

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 ChangeN/A
Market Cap16.41B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts73.64
Price Target208.29 (36.29%)
Short Float %5.95%
Short Ratio3.45
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)-10.08%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 12.82
Fwd PE 14.35
P/S 6.02
P/FCF 13.24
P/OCF 12.96
P/B 5.69
P/tB 21.49
EV/EBITDA 15.41
EPS(TTM)11.92
EY7.8%
EPS(NY)10.65
Fwd EY6.97%
FCF(TTM)11.54
FCFY7.55%
OCF(TTM)11.79
OCFY7.71%
SpS25.39
BVpS26.85
TBVpS7.11
PEG (NY)N/A
PEG (5Y)1.08
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 5.72
F-Score5
WACC8.88%
ROIC/WACC1.39
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.


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 12.82 and the Price/Book (PB) ratio is 5.69.


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 -10.66% in the next year.