CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation

NASDAQ:CHKP • IL0010824113

Current stock price

146.24 USD
-2.16 (-1.46%)
Last:

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.
  • Each year in the past 5 years CHKP had a positive operating cash flow.
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.
  • With an excellent Return On Equity value of 36.67%, CHKP belongs to the best of the industry, outperforming 93.09% of the companies in the same industry.
  • CHKP has a better Return On Invested Capital (12.32%) than 88.73% 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 10.99%.
  • The last Return On Invested Capital (12.32%) for CHKP is well below the 3 year average (17.67%), which needs to be investigated, but indicates that CHKP had better years and this may not be a problem.
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 94.91% of its industry peers.
  • In the last couple of years the Profit Margin of CHKP has remained more or less at the same level.
  • CHKP has a Operating Margin of 30.49%. This is amongst the best in the industry. CHKP outperforms 94.18% of its industry peers.
  • CHKP's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 86.72%, CHKP belongs to the best 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 less shares outstanding
  • CHKP has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CHKP has a worse debt to assets ratio.
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 5.66 indicates that CHKP is not in any danger for bankruptcy at the moment.
  • CHKP has a Altman-Z score of 5.66. This is in the better half of the industry: CHKP outperforms 79.64% of its industry peers.
  • The Debt to FCF ratio of CHKP is 1.68, which is an excellent value as it means it would take CHKP, only 1.68 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.68, CHKP is doing good in the industry, outperforming 68.36% of the companies in the same industry.
  • CHKP has a Debt/Equity ratio of 0.68. This is a neutral value indicating CHKP is somewhat dependend on debt financing.
  • The Debt to Equity ratio of CHKP (0.68) is worse than 68.73% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for CHKP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 1.68
Altman-Z 5.66
ROIC/WACC1.4
WACC8.8%
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

  • A Current Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
  • CHKP has a Current ratio (2.05) which is comparable to the rest of the industry.
  • A Quick Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
  • The Quick ratio of CHKP (2.05) 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

  • The Earnings Per Share has grown by an impressive 30.13% over the past year.
  • CHKP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.85% yearly.
  • CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
  • 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

  • Based on estimates for the next years, CHKP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
  • 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.
  • 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.
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

  • Based on the Price/Earnings ratio of 12.27, the valuation of CHKP can be described as correct.
  • 85.09% of the companies in the same industry are more expensive than CHKP, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.21. CHKP is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 13.73, which indicates a correct valuation of CHKP.
  • Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than the industry average as 77.45% of the companies are valued more expensively.
  • CHKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.27
Fwd PE 13.73
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

  • Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CHKP is valued cheaply inside the industry as 82.55% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.39
EV/EBITDA 14.8
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)1.04
EPS Next 2Y-0.73%
EPS Next 3Y4.89%

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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 (4/8/2026, 12:39:08 PM)

146.24

-2.16 (-1.46%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners77.44%
Inst Owner Change0%
Ins Owners23.17%
Ins Owner Change0%
Market Cap15.70B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts73.33
Price Target205.61 (40.6%)
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)-1.28%
PT rev (3m)-11.37%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 12.27
Fwd PE 13.73
P/S 5.76
P/FCF 13.39
P/OCF 13.09
P/B 5.45
P/tB 20.56
EV/EBITDA 14.8
EPS(TTM)11.92
EY8.15%
EPS(NY)10.65
Fwd EY7.28%
FCF(TTM)10.93
FCFY7.47%
OCF(TTM)11.17
OCFY7.64%
SpS25.39
BVpS26.85
TBVpS7.11
PEG (NY)N/A
PEG (5Y)1.04
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 43.03%
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)29.91%
ROICexc(5y)31.12%
ROICexgc(3y)123.18%
ROICexgc(5y)102.82%
ROCE(3y)20.31%
ROCE(5y)21.07%
ROICexgc growth 3Y1.9%
ROICexgc growth 5Y11.23%
ROICexc growth 3Y-10.68%
ROICexc growth 5Y-4.16%
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 1.68
Debt/EBITDA 2.13
Cap/Depr 28.63%
Cap/Sales 0.98%
Interest Coverage 250
Cash Conversion 129.81%
Profit Quality 110.97%
Current Ratio 2.05
Quick Ratio 2.05
Altman-Z 5.66
F-Score5
WACC8.8%
ROIC/WACC1.4
Cap/Depr(3y)32.27%
Cap/Depr(5y)41.93%
Cap/Sales(3y)0.9%
Cap/Sales(5y)0.87%
Profit Quality(3y)117.95%
Profit Quality(5y)126.92%
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 1Y14.06%
FCF growth 3Y2.9%
FCF growth 5Y0.54%
OCF growth 1Y13.97%
OCF growth 3Y2.97%
OCF growth 5Y0.65%

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 12.27 and the Price/Book (PB) ratio is 5.45.


Can you provide the financial health for CHKP stock?

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