CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
187.08 USD
+3.15 (+1.71%)
187.08 USD
0 (0%)
CHKP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. CHKP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHKP is not valued too expensively and it also shows a decent growth rate. This makes CHKP very considerable for quality investing!
1. Profitability
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.
1.2 Ratios
CHKP's Return On Assets of 17.72% is amongst the best of the industry. CHKP outperforms 93.24% of its industry peers.
CHKP's Return On Equity of 32.79% is amongst the best of the industry. CHKP outperforms 92.53% of its industry peers.
CHKP has a better Return On Invested Capital (18.51%) than 92.88% 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 12.04%.
| 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
The Profit Margin of CHKP (37.62%) is better than 93.59% of its industry peers.
In the last couple of years the Profit Margin of CHKP has declined.
With an excellent Operating Margin value of 31.76%, CHKP belongs to the best of the industry, outperforming 93.95% 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 86.81%, CHKP belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
CHKP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, CHKP has less shares outstanding
Compared to 5 years ago, CHKP has less shares outstanding
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
CHKP has an Altman-Z score of 9.22. 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 9.22, CHKP belongs to the top of the industry, outperforming 87.54% 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/WACC2.03
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
The Current ratio of CHKP (1.19) is worse than 65.12% of its industry peers.
CHKP has a Quick 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.
Looking at the Quick ratio, with a value of 1.19, CHKP is doing worse than 64.06% of the companies in the same industry.
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.
Measured over the past years, CHKP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.26% on average per year.
CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.31%.
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.
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 Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
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.
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
Based on the Price/Earnings ratio of 16.67, the valuation of CHKP can be described as correct.
CHKP's Price/Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 78.29% of the companies in the same industry.
CHKP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
With a Price/Forward Earnings ratio of 17.36, CHKP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than 76.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CHKP to the average of the S&P500 Index (34.08), we can say CHKP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 17.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than 79.72% of the companies in the same industry.
80.43% of the companies in the same industry are more expensive than CHKP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 18.48 |
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.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.7
PEG (5Y)2.02
EPS Next 2Y8.46%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
187.08
+3.15 (+1.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change-2.28%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap20.27B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts72.73
Price Target226.95 (21.31%)
Short Float %4.38%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-0.18%
PT rev (3m)-1.53%
EPS NQ rev (1m)-4.04%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)12.19%
EPS NY rev (3m)12.33%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 17.36 | ||
| P/S | 7.55 | ||
| P/FCF | 18.1 | ||
| P/OCF | 17.69 | ||
| P/B | 6.58 | ||
| P/tB | 17.63 | ||
| EV/EBITDA | 18.48 |
EPS(TTM)11.22
EY6%
EPS(NY)10.77
Fwd EY5.76%
FCF(TTM)10.33
FCFY5.52%
OCF(TTM)10.57
OCFY5.65%
SpS24.77
BVpS28.42
TBVpS10.61
PEG (NY)0.7
PEG (5Y)2.02
Graham Number84.7
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
WACC9.11%
ROIC/WACC2.03
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 Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
Revenue Next 5Y6.81%
EBIT growth 1Y-2.4%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year6.62%
EBIT Next 3Y5.34%
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.
What is the valuation status for CHKP stock?
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 8 / 10.
What are the PE and PB ratios of CHECK POINT SOFTWARE TECH (CHKP) stock?
The Price/Earnings (PE) ratio for CHECK POINT SOFTWARE TECH (CHKP) is 16.67 and the Price/Book (PB) ratio is 6.58.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.