CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation
NASDAQ:CHKP • IL0010824113
Current stock price
142.82 USD
+0.41 (+0.29%)
At close:
142.82 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.
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.
- In the past 5 years CHKP has always been profitable.
- In the past 5 years CHKP always reported a positive cash flow from operatings.
1.2 Ratios
- CHKP has a Return On Assets of 13.54%. This is amongst the best in the industry. CHKP outperforms 91.37% of its industry peers.
- CHKP has a better Return On Equity (36.67%) than 93.17% of its industry peers.
- With an excellent Return On Invested Capital value of 12.32%, CHKP belongs to the best of the industry, outperforming 88.85% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 10.92%.
- 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
- Looking at the Profit Margin, with a value of 38.78%, CHKP belongs to the top of the industry, outperforming 94.60% of the companies in the same industry.
- CHKP's Profit Margin has been stable in the last couple of years.
- CHKP has a Operating Margin of 30.49%. This is amongst the best in the industry. CHKP outperforms 94.24% of its industry peers.
- CHKP's Operating Margin has declined in the last couple of years.
- CHKP has a Gross Margin of 86.72%. This is amongst the best in the industry. CHKP outperforms 93.53% 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. 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.
- CHKP has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CHKP has less shares outstanding
- CHKP has a worse debt/assets ratio than last year.
2.2 Solvency
- CHKP has an Altman-Z score of 5.58. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
- CHKP has a better Altman-Z score (5.58) than 80.22% of its industry peers.
- 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.
- The Debt to FCF ratio of CHKP (1.59) is better than 69.06% of its industry peers.
- 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: 69.06% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 5.58 |
ROIC/WACC1.48
WACC8.35%
2.3 Liquidity
- A Current Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
- CHKP's Current ratio of 2.05 is in line compared to the rest of the industry. CHKP outperforms 58.99% of its industry peers.
- 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
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.
- Looking at the last year, CHKP shows a small growth in Revenue. The Revenue has grown by 6.25% in the last year.
- CHKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.71% yearly.
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.
- The Revenue is expected to grow by 7.62% on average over the next years.
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.
4. CHKP Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.98, which indicates a very decent valuation of CHKP.
- CHKP's Price/Earnings ratio is rather cheap when compared to the industry. CHKP is cheaper than 85.97% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.23. CHKP is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 13.41 indicates a correct valuation of CHKP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 78.42% of the companies listed in the same industry.
- CHKP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 13.41 |
4.2 Price Multiples
- CHKP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHKP is cheaper than 80.22% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CHKP is valued cheaply inside the industry as 84.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
- CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-0.73%
EPS Next 3Y4.89%
5. CHKP Dividend Analysis
5.1 Amount
- No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CHKP Fundamentals: All Metrics, Ratios and Statistics
142.82
+0.41 (+0.29%)
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 Owners77.44%
Inst Owner Change4.72%
Ins Owners23.17%
Ins Owner Change0%
Market Cap15.33B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts73.64
Price Target208.29 (45.84%)
Short Float %5.95%
Short Ratio3.45
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)-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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 13.41 | ||
| P/S | 5.63 | ||
| P/FCF | 12.38 | ||
| P/OCF | 12.12 | ||
| P/B | 5.32 | ||
| P/tB | 20.08 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)11.92
EY8.35%
EPS(NY)10.65
Fwd EY7.46%
FCF(TTM)11.54
FCFY8.08%
OCF(TTM)11.79
OCFY8.25%
SpS25.39
BVpS26.85
TBVpS7.11
PEG (NY)N/A
PEG (5Y)1.01
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 | 5.58 |
F-Score5
WACC8.35%
ROIC/WACC1.48
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 7 / 10 to CHECK POINT SOFTWARE TECH (CHKP). This can be considered as Undervalued.
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 11.98 and the Price/Book (PB) ratio is 5.32.
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.