180.21 USD
+0.7 (+0.39%)
At close: Feb 2, 2026
180.21 USD
0 (0%)
After Hours: 2/2/2026, 5:41:55 PM
Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 278 industry peers in the Software industry. CHKP gets an excellent profitability rating and is at the same time showing great financial health properties. CHKP is not valued too expensively and it also shows a decent growth rate. These ratings could make CHKP a good candidate for 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.
- CHKP had positive earnings in each of the past 5 years.
- 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 93.53% of its industry peers.
- The Return On Equity of CHKP (32.79%) is better than 92.81% of its industry peers.
- CHKP's Return On Invested Capital of 18.51% is amongst the best of the industry. CHKP outperforms 93.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 10.76%.
| 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
- CHKP has a Profit Margin of 37.62%. This is amongst the best in the industry. CHKP outperforms 92.09% of its industry peers.
- In the last couple of years the Profit Margin of CHKP has declined.
- CHKP's Operating Margin of 31.76% is amongst the best of the industry. CHKP outperforms 93.53% of its industry peers.
- CHKP's Operating Margin has declined in the last couple of years.
- CHKP has a Gross Margin of 86.81%. This is amongst the best in the industry. CHKP outperforms 93.53% of its industry peers.
- 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.
- 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
- CHKP has an Altman-Z score of 9.07. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 9.07, CHKP belongs to the best of the industry, outperforming 90.29% 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 | 9.07 |
ROIC/WACC1.9
WACC9.74%
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 66.91% 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.
- CHKP has a worse Quick ratio (1.19) than 66.19% of its industry peers.
- CHKP does not score too well on the current and quick ratio evaluation. However, as it has 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.
- The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.31% in the past 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.
- CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.81% yearly.
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
- 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
- The Price/Earnings ratio is 16.06, which indicates a correct valuation of CHKP.
- Based on the Price/Earnings ratio, CHKP is valued a bit cheaper than 77.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, CHKP is valued a bit cheaper.
- The Price/Forward Earnings ratio is 16.81, which indicates a correct valuation of CHKP.
- 76.26% 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 (25.64), we can say CHKP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
- CHKP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 77.34% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CHKP is valued a bit cheaper than the industry average as 79.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.27 | ||
| EV/EBITDA | 17.79 |
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)0.63
PEG (5Y)1.94
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 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 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.