180.24 USD
-2.7 (-1.48%)
180.24 USD
0 (0%)
CHKP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 278 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.
- In the past 5 years CHKP always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CHKP (17.72%) is better than 93.88% of its industry peers.
- CHKP has a Return On Equity of 32.79%. This is amongst the best in the industry. CHKP outperforms 92.45% of its industry peers.
- With an excellent Return On Invested Capital value of 18.51%, CHKP belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
- CHKP had an Average Return On Invested Capital over the past 3 years of 20.07%. This is significantly above the industry average of 10.76%.
| 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
- Looking at the Profit Margin, with a value of 37.62%, CHKP belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
- CHKP's Profit Margin has declined in the last couple of years.
- CHKP has a better Operating Margin (31.76%) than 93.53% of its industry peers.
- In the last couple of years the Operating Margin of CHKP has declined.
- The Gross Margin of CHKP (86.81%) is better than 93.53% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHKP is creating value.
- Compared to 1 year ago, CHKP has less shares outstanding
- The number of shares outstanding for CHKP has been reduced compared to 5 years ago.
- 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.
2.2 Solvency
- An Altman-Z score of 9.09 indicates that CHKP is not in any danger for bankruptcy at the moment.
- CHKP has a better Altman-Z score (9.09) than 88.85% of its industry peers.
- 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 | 9.09 |
ROIC/WACC2.04
WACC9.08%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.19, CHKP is not doing good in the industry: 66.91% of the companies in the same industry are doing better.
- A Quick Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
- CHKP has a Quick ratio of 1.19. This is in the lower half of the industry: CHKP underperforms 66.19% of its industry peers.
- 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
- CHKP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.25%, which is quite impressive.
- The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
- Looking at the last year, CHKP shows a small growth in Revenue. The Revenue has grown by 6.31% in the last year.
- CHKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
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
- Based on estimates for the next years, CHKP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.82% on average per year.
- Based on estimates for the next years, CHKP will show a small growth in Revenue. The Revenue will grow by 6.81% on average per year.
EPS Next Y25.58%
EPS Next 2Y8.2%
EPS Next 3Y8.94%
EPS Next 5Y11.82%
Revenue Next Year6.51%
Revenue Next 2Y6.29%
Revenue Next 3Y6.14%
Revenue Next 5Y6.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.06, CHKP is valued correctly.
- Based on the Price/Earnings ratio, CHKP is valued a bit cheaper than the industry average as 78.06% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CHKP is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 16.81, CHKP is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 77.34% 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 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than the industry average as 78.42% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CHKP is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.28 | ||
| EV/EBITDA | 17.87 |
4.3 Compensation for Growth
- CHKP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)0.63
PEG (5Y)1.95
EPS Next 2Y8.2%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
- No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 16.06 and the Price/Book (PB) ratio is 6.28.
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.