CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
191.72 USD
-0.28 (-0.15%)
191.72 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CHKP. CHKP was compared to 285 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. CHKP is not valued too expensively and it also shows a decent growth rate. These ratings would make CHKP suitable for quality investing!
1. Profitability
1.1 Basic Checks
CHKP had positive earnings in the past year.
In the past year CHKP had a positive cash flow from operations.
CHKP had positive earnings in each of the past 5 years.
CHKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHKP's Return On Assets of 15.09% is amongst the best of the industry. CHKP outperforms 91.23% of its industry peers.
Looking at the Return On Equity, with a value of 30.27%, CHKP belongs to the top of the industry, outperforming 91.93% of the companies in the same industry.
The Return On Invested Capital of CHKP (19.22%) is better than 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 11.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.09% | ||
| ROE | 30.27% | ||
| ROIC | 19.22% |
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
CHKP's Profit Margin of 32.48% is amongst the best of the industry. CHKP outperforms 91.93% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 33.00%, CHKP belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.
In the last couple of years the Operating Margin of CHKP has declined.
The Gross Margin of CHKP (86.92%) is better than 94.74% of its industry peers.
CHKP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33% | ||
| PM (TTM) | 32.48% | ||
| GM | 86.92% |
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.
CHKP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHKP has less shares outstanding
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
CHKP has an Altman-Z score of 8.97. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.97, CHKP belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
CHKP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.97 |
ROIC/WACC2.08
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CHKP should not have too much problems paying 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 63.51% 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: 63.16% 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 been growing slightly by 7.68% 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.
Looking at the last year, CHKP shows a small growth in Revenue. The Revenue has grown by 6.27% in the last year.
Measured over the past years, CHKP shows a small growth in Revenue. The Revenue has been growing by 5.16% on average per year.
EPS 1Y (TTM)7.68%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%9.22%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
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.
CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
EPS Next Y10.35%
EPS Next 2Y9.26%
EPS Next 3Y9.64%
EPS Next 5Y11.82%
Revenue Next Year6.2%
Revenue Next 2Y5.91%
Revenue Next 3Y5.84%
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
CHKP is valuated rather expensively with a Price/Earnings ratio of 20.12.
Based on the Price/Earnings ratio, CHKP is valued a bit cheaper than 77.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, CHKP is valued a bit cheaper.
CHKP is valuated rather expensively with a Price/Forward Earnings ratio of 17.53.
78.95% of the companies in the same industry are more expensive than CHKP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.09. CHKP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHKP is valued cheaper than 81.75% of the companies in the same industry.
CHKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CHKP is cheaper than 83.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.85 | ||
| EV/EBITDA | 19.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHKP does not grow enough to justify the current Price/Earnings ratio.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)2.44
EPS Next 2Y9.26%
EPS Next 3Y9.64%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
191.72
-0.28 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change-0.06%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap20.78B
Revenue(TTM)2.64B
Net Income(TTM)858.10M
Analysts73.33
Price Target227.36 (18.59%)
Short Float %3.33%
Short Ratio3.7
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)0
Avg EPS beat(2)-1.29%
Min EPS beat(2)-1.7%
Max EPS beat(2)-0.88%
EPS beat(4)0
Avg EPS beat(4)-1.21%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.28%
EPS beat(8)2
Avg EPS beat(8)-0.53%
EPS beat(12)6
Avg EPS beat(12)0.55%
EPS beat(16)9
Avg EPS beat(16)0.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.47%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.23%
PT rev (1m)0%
PT rev (3m)-6.02%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.12 | ||
| Fwd PE | 17.53 | ||
| P/S | 7.86 | ||
| P/FCF | 17.85 | ||
| P/OCF | 17.48 | ||
| P/B | 7.33 | ||
| P/tB | 23.46 | ||
| EV/EBITDA | 19.02 |
EPS(TTM)9.53
EY4.97%
EPS(NY)10.93
Fwd EY5.7%
FCF(TTM)10.74
FCFY5.6%
OCF(TTM)10.97
OCFY5.72%
SpS24.38
BVpS26.16
TBVpS8.17
PEG (NY)1.94
PEG (5Y)2.44
Graham Number74.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.09% | ||
| ROE | 30.27% | ||
| ROCE | 22.21% | ||
| ROIC | 19.22% | ||
| ROICexc | 31.42% | ||
| ROICexgc | 166.54% | ||
| OM | 33% | ||
| PM (TTM) | 32.48% | ||
| GM | 86.92% | ||
| FCFM | 44.06% |
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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 26.44% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.09% | ||
| Profit Quality | 135.64% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 8.97 |
F-Score7
WACC9.23%
ROIC/WACC2.08
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)7.68%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%9.22%
EPS Next Y10.35%
EPS Next 2Y9.26%
EPS Next 3Y9.64%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
Revenue Next Year6.2%
Revenue Next 2Y5.91%
Revenue Next 3Y5.84%
Revenue Next 5Y6.81%
EBIT growth 1Y-1.04%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year6.62%
EBIT Next 3Y5.34%
EBIT Next 5Y5.86%
FCF growth 1Y0.42%
FCF growth 3Y-4.7%
FCF growth 5Y-0.95%
OCF growth 1Y0.95%
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 5 / 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 20.12 and the Price/Book (PB) ratio is 7.33.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.