CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation

NASDAQ:CHKP • IL0010824113

Current stock price

141.2 USD
+2.36 (+1.7%)
At close:
141.2 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.

9

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.
  • 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.
CHKP Yearly Net Income VS EBIT VS OCF VS FCFCHKP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of CHKP (13.54%) is better than 91.27% of its industry peers.
  • CHKP has a better Return On Equity (36.67%) than 93.09% of its industry peers.
  • The Return On Invested Capital of CHKP (12.32%) is better than 88.73% of its industry peers.
  • 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 RankSector 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%
CHKP Yearly ROA, ROE, ROICCHKP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • CHKP has a Profit Margin of 38.78%. This is amongst the best in the industry. CHKP outperforms 94.55% of its industry peers.
  • In the last couple of years the Profit Margin of CHKP has remained more or less at the same level.
  • With an excellent Operating Margin value of 30.49%, CHKP belongs to the best of the industry, outperforming 94.18% of the companies in the same industry.
  • CHKP's Operating Margin has declined in the last couple of years.
  • CHKP's Gross Margin of 86.72% is amongst the best of the industry. CHKP outperforms 93.45% of its industry peers.
  • CHKP's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CHKP Yearly Profit, Operating, Gross MarginsCHKP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. CHKP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHKP is creating value.
  • The number of shares outstanding for CHKP remains at a similar level compared to 1 year ago.
  • CHKP has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CHKP has a worse debt to assets ratio.
CHKP Yearly Shares OutstandingCHKP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CHKP Yearly Total Debt VS Total AssetsCHKP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 5.53 indicates that CHKP is not in any danger for bankruptcy at the moment.
  • CHKP has a Altman-Z score of 5.53. This is amongst the best in the industry. CHKP outperforms 81.09% 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.
  • With a decent Debt to FCF ratio value of 1.59, CHKP is doing good in the industry, outperforming 68.73% of the companies in the same industry.
  • CHKP has a Debt/Equity ratio of 0.68. This is a neutral value indicating CHKP is somewhat dependend on debt financing.
  • The Debt to Equity ratio of CHKP (0.68) is worse than 69.09% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.68
Debt/FCF 1.59
Altman-Z 5.53
ROIC/WACC1.43
WACC8.61%
CHKP Yearly LT Debt VS Equity VS FCFCHKP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
  • CHKP has a Current ratio (2.05) which is in line with its industry peers.
  • A Quick Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
  • CHKP has a Quick ratio (2.05) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 2.05
CHKP Yearly Current Assets VS Current LiabilitesCHKP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. CHKP Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 30.13% over the past year.
  • The Earnings Per Share has been growing by 11.85% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 6.25% in the past year.
  • Measured over the past years, CHKP shows a small growth in Revenue. The Revenue has been growing by 5.71% on average per year.
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.
  • Based on estimates for the next years, CHKP will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
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

  • 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.
  • 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.
CHKP Yearly Revenue VS EstimatesCHKP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B 4B
CHKP Yearly EPS VS EstimatesCHKP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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Find the best growth stocksShow best growing peers

7

4. CHKP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 11.85, which indicates a very decent valuation of CHKP.
  • Based on the Price/Earnings ratio, CHKP is valued cheaply inside the industry as 86.18% of the companies are valued more expensively.
  • CHKP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.75.
  • Based on the Price/Forward Earnings ratio of 13.26, the valuation of CHKP can be described as correct.
  • Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than 77.82% of the companies in the same industry.
  • CHKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.85
Fwd PE 13.26
CHKP Price Earnings VS Forward Price EarningsCHKP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 80.73% of the companies listed in the same industry.
  • 84.36% of the companies in the same industry are more expensive than CHKP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.23
EV/EBITDA 13.69
CHKP Per share dataCHKP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-0.73%
EPS Next 3Y4.89%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CHKP Dividend Analysis

5.1 Amount

  • No dividends for CHKP!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

CHKP Fundamentals: All Metrics, Ratios and Statistics

CHECK POINT SOFTWARE TECH

NASDAQ:CHKP (3/30/2026, 8:00:01 PM)

After market: 141.2 0 (0%)

141.2

+2.36 (+1.7%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-21
Inst Owners77.44%
Inst Owner Change4.72%
Ins Owners23.17%
Ins Owner Change0%
Market Cap15.16B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts73.64
Price Target205.61 (45.62%)
Short Float %5.95%
Short Ratio3.45
Dividend
Industry RankSector 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 RankSector Rank
PE 11.85
Fwd PE 13.26
P/S 5.56
P/FCF 12.23
P/OCF 11.98
P/B 5.26
P/tB 19.85
EV/EBITDA 13.69
EPS(TTM)11.92
EY8.44%
EPS(NY)10.65
Fwd EY7.54%
FCF(TTM)11.54
FCFY8.17%
OCF(TTM)11.79
OCFY8.35%
SpS25.39
BVpS26.85
TBVpS7.11
PEG (NY)N/A
PEG (5Y)1
Graham Number84.86
Profitability
Industry RankSector 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 RankSector 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 5.53
F-Score5
WACC8.61%
ROIC/WACC1.43
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 11.85 and the Price/Book (PB) ratio is 5.26.


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.