185.56 USD
-1.9 (-1.01%)
185.56 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CHKP. CHKP was compared to 276 industry peers in the Software industry. CHKP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on CHKP. These ratings could make CHKP a good candidate for value and 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.
In the past 5 years CHKP has always been profitable.
Each year in the past 5 years CHKP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CHKP (17.72%) is better than 93.84% of its industry peers.
CHKP has a Return On Equity of 32.79%. This is amongst the best in the industry. CHKP outperforms 92.75% of its industry peers.
With an excellent Return On Invested Capital value of 18.51%, CHKP belongs to the best of the industry, outperforming 93.84% 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 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.72% | ||
| ROE | 32.79% | ||
| ROIC | 18.51% |
ROA(3y)14.46%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.07%
ROIC(5y)19.43%
1.3 Margins
With an excellent Profit Margin value of 37.62%, CHKP belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
CHKP's Profit Margin has declined in the last couple of years.
CHKP has a Operating Margin of 31.76%. This is amongst the best in the industry. CHKP outperforms 93.48% of its industry peers.
CHKP's Operating Margin has declined in the last couple of years.
The Gross Margin of CHKP (86.81%) is better than 93.84% of its industry peers.
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 | 31.76% | ||
| PM (TTM) | 37.62% | ||
| GM | 86.81% |
OM growth 3Y-6.58%
OM growth 5Y-5.03%
PM growth 3Y-4.32%
PM growth 5Y-4.45%
GM growth 3Y-0.2%
GM growth 5Y-0.37%
2. Health
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.
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 9.22 indicates that CHKP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.22, CHKP belongs to the top of the industry, outperforming 87.68% of the companies in the same industry.
There is no outstanding debt for CHKP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.22 |
ROIC/WACC2.15
WACC8.6%
2.3 Liquidity
CHKP has a Current Ratio of 1.19. This is a normal value and indicates that CHKP is financially healthy and should not expect problems in meeting its short term obligations.
CHKP's Current ratio of 1.19 is on the low side compared to the rest of the industry. CHKP is outperformed by 67.03% of its industry peers.
A Quick Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, CHKP is not doing good in the industry: 65.94% of the companies in the same industry are doing better.
The current and quick ratio evaluation for CHKP is rather negative, while it does have 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 | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.25% 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 8.26% yearly.
The Revenue has been growing slightly by 6.31% in the past year.
The Revenue has been growing slightly by 5.16% on average over the past years.
EPS 1Y (TTM)24.25%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%75.11%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y25.58%
EPS Next 2Y8.27%
EPS Next 3Y8.96%
EPS Next 5Y11.82%
Revenue Next Year6.51%
Revenue Next 2Y6.28%
Revenue Next 3Y6.14%
Revenue Next 5Y6.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.54 indicates a correct valuation of CHKP.
Based on the Price/Earnings ratio, CHKP is valued a bit cheaper than the industry average as 78.99% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. CHKP is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.28, the valuation of CHKP can be described as rather expensive.
78.62% of the companies in the same industry are more expensive than CHKP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CHKP to the average of the S&P500 Index (23.13), we can say CHKP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHKP is valued cheaper than 80.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 81.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.79 | ||
| EV/EBITDA | 18.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)2
EPS Next 2Y8.27%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
185.56
-1.9 (-1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner Change0.29%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap19.92B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts73.02
Price Target231.99 (25.02%)
Short Float %6.58%
Short Ratio6.14
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)1
Avg EPS beat(2)27.94%
Min EPS beat(2)-1.7%
Max EPS beat(2)57.59%
EPS beat(4)1
Avg EPS beat(4)13.68%
Min EPS beat(4)-1.7%
Max EPS beat(4)57.59%
EPS beat(8)2
Avg EPS beat(8)6.61%
EPS beat(12)6
Avg EPS beat(12)5.04%
EPS beat(16)9
Avg EPS beat(16)4.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)0
Avg Revenue beat(12)-1.59%
Revenue beat(16)1
Avg Revenue beat(16)-1.24%
PT rev (1m)0.15%
PT rev (3m)2.04%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-4.12%
EPS NY rev (1m)1.48%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 17.28 | ||
| P/S | 7.42 | ||
| P/FCF | 17.79 | ||
| P/OCF | 17.39 | ||
| P/B | 6.47 | ||
| P/tB | 17.32 | ||
| EV/EBITDA | 18.47 |
EPS(TTM)11.22
EY6.05%
EPS(NY)10.74
Fwd EY5.79%
FCF(TTM)10.43
FCFY5.62%
OCF(TTM)10.67
OCFY5.75%
SpS25
BVpS28.69
TBVpS10.71
PEG (NY)0.65
PEG (5Y)2
Graham Number85.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.72% | ||
| ROE | 32.79% | ||
| ROCE | 21.38% | ||
| ROIC | 18.51% | ||
| ROICexc | 29.31% | ||
| ROICexgc | 125.46% | ||
| OM | 31.76% | ||
| PM (TTM) | 37.62% | ||
| GM | 86.81% | ||
| FCFM | 41.72% |
ROA(3y)14.46%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.07%
ROIC(5y)19.43%
ROICexc(3y)33.25%
ROICexc(5y)32.25%
ROICexgc(3y)125.28%
ROICexgc(5y)97.86%
ROCE(3y)23.18%
ROCE(5y)22.45%
ROICexgc growth 3Y30.18%
ROICexgc growth 5Y26.49%
ROICexc growth 3Y-0.42%
ROICexc growth 5Y2.59%
OM growth 3Y-6.58%
OM growth 5Y-5.03%
PM growth 3Y-4.32%
PM growth 5Y-4.45%
GM growth 3Y-0.2%
GM growth 5Y-0.37%
F-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 25.75% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.22% | ||
| Profit Quality | 110.89% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 9.22 |
F-Score8
WACC8.6%
ROIC/WACC2.15
Cap/Depr(3y)43.08%
Cap/Depr(5y)50.45%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.87%
Profit Quality(3y)125.99%
Profit Quality(5y)131.69%
High Growth Momentum
Growth
EPS 1Y (TTM)24.25%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%75.11%
EPS Next Y25.58%
EPS Next 2Y8.27%
EPS Next 3Y8.96%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
Revenue Next Year6.51%
Revenue Next 2Y6.28%
Revenue Next 3Y6.14%
Revenue Next 5Y6.81%
EBIT growth 1Y-2.4%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year5.55%
EBIT Next 3Y5.88%
EBIT Next 5Y5.39%
FCF growth 1Y-5.59%
FCF growth 3Y-4.7%
FCF growth 5Y-0.95%
OCF growth 1Y-5.04%
OCF growth 3Y-4.38%
OCF growth 5Y-0.96%
CHECK POINT SOFTWARE TECH / CHKP 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 8 / 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 16.54 and the Price/Book (PB) ratio is 6.47.
Can you provide the expected EPS growth for CHKP stock?
The Earnings per Share (EPS) of CHECK POINT SOFTWARE TECH (CHKP) is expected to grow by 25.58% in the next year.