189.14 USD
+1.14 (+0.61%)
189.14 USD
0 (0%)
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. Both the health and profitability get an excellent rating, making CHKP a very profitable company, without any liquidiy or solvency issues. CHKP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, CHKP could be worth investigating further for value and 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.
Each year in the past 5 years CHKP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CHKP (17.72%) is better than 93.95% of its industry peers.
The Return On Equity of CHKP (32.79%) is better than 92.88% of its industry peers.
CHKP has a Return On Invested Capital of 18.51%. This is amongst the best in the industry. CHKP outperforms 93.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 10.78%.
| 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's Profit Margin of 37.62% is amongst the best of the industry. CHKP outperforms 93.59% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 31.76%, CHKP belongs to the best of the industry, outperforming 93.59% of the companies in the same industry.
CHKP's Operating Margin has declined in the last couple of years.
CHKP has a better Gross Margin (86.81%) than 93.95% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHKP is creating value.
CHKP has less shares outstanding than it did 1 year ago.
CHKP has less shares outstanding than it did 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
An Altman-Z score of 9.31 indicates that CHKP is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHKP (9.31) is better than 86.48% 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 | 9.31 |
ROIC/WACC2.05
WACC9.02%
2.3 Liquidity
CHKP has a Current 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 Current ratio of 1.19. This is in the lower half of the industry: CHKP underperforms 66.55% 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.
With a Quick ratio value of 1.19, CHKP is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
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
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.
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.
The Revenue has been growing slightly by 6.31% in the past year.
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
CHKP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.82% yearly.
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 2Y8.27%
EPS Next 3Y8.96%
EPS Next 5Y11.82%
Revenue Next Year6.51%
Revenue Next 2Y6.28%
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.
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
The Price/Earnings ratio is 16.86, which indicates a correct valuation of CHKP.
CHKP's Price/Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 79.00% 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 26.39.
Based on the Price/Forward Earnings ratio of 17.61, the valuation of CHKP can be described as rather expensive.
77.58% 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 (23.84), we can say CHKP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 17.61 |
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 81.49% of the companies listed in the same industry.
CHKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CHKP is cheaper than 81.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.13 | ||
| EV/EBITDA | 18.87 |
4.3 Compensation for Growth
The 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)0.66
PEG (5Y)2.04
EPS Next 2Y8.27%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
189.14
+1.14 (+0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner Change0.29%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap20.30B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts73.02
Price Target231.99 (22.66%)
Short Float %5.23%
Short Ratio4.65
Dividend
| Industry Rank | Sector 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)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)2.22%
PT rev (3m)2.04%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-4.12%
EPS NY rev (1m)1.48%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 17.61 | ||
| P/S | 7.56 | ||
| P/FCF | 18.13 | ||
| P/OCF | 17.72 | ||
| P/B | 6.59 | ||
| P/tB | 17.66 | ||
| EV/EBITDA | 18.87 |
EPS(TTM)11.22
EY5.93%
EPS(NY)10.74
Fwd EY5.68%
FCF(TTM)10.43
FCFY5.52%
OCF(TTM)10.67
OCFY5.64%
SpS25
BVpS28.69
TBVpS10.71
PEG (NY)0.66
PEG (5Y)2.04
Graham Number85.1
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 | 9.31 |
F-Score8
WACC9.02%
ROIC/WACC2.05
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 Y25.58%
EPS Next 2Y8.27%
EPS Next 3Y8.96%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
Revenue Next Year6.51%
Revenue Next 2Y6.28%
Revenue Next 3Y6.14%
Revenue Next 5Y6.81%
EBIT growth 1Y-2.4%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year5.28%
EBIT Next 3Y5.69%
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 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 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 16.86 and the Price/Book (PB) ratio is 6.59.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.