190 USD
-2.67 (-1.39%)
190 USD
0 (0%)
Overall CHKP gets a fundamental rating of 7 out of 10. We evaluated CHKP against 276 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. With these ratings, CHKP could be worth investigating further 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.
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
The Return On Assets of CHKP (17.72%) is better than 93.84% of its industry peers.
CHKP has a better Return On Equity (32.79%) than 92.75% of its industry peers.
The Return On Invested Capital of CHKP (18.51%) is better than 93.84% 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 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 92.39% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
The Operating Margin of CHKP (31.76%) is better than 93.48% 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 93.84% of its industry peers.
In the last couple of years the Gross Margin of CHKP has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHKP is creating value.
Compared to 1 year ago, CHKP has less shares outstanding
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
CHKP has an Altman-Z score of 9.40. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.40, CHKP belongs to the best of the industry, outperforming 88.41% 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 | 9.4 |
ROIC/WACC2.01
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
CHKP has a worse Current ratio (1.19) than 67.03% of its industry peers.
A Quick Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
The Quick ratio of CHKP (1.19) is worse than 65.94% of its industry peers.
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.
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
The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
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 2Y8.27%
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
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.
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 16.93, the valuation of CHKP can be described as correct.
77.90% of the companies in the same industry are more expensive than CHKP, based on the Price/Earnings ratio.
CHKP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 17.69 indicates a rather expensive valuation of CHKP.
Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than 76.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. CHKP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
78.99% of the companies in the same industry are more expensive than CHKP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 81.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.21 | ||
| EV/EBITDA | 19.27 |
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)2.05
EPS Next 2Y8.27%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
190
-2.67 (-1.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners72.59%
Inst Owner Change0%
Ins Owners23.17%
Ins Owner ChangeN/A
Market Cap20.40B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts72.73
Price Target231.99 (22.1%)
Short Float %6.58%
Short Ratio6.14
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)0.15%
PT rev (3m)2.04%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-4.12%
EPS NY rev (1m)0%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 17.69 | ||
| P/S | 7.6 | ||
| P/FCF | 18.21 | ||
| P/OCF | 17.8 | ||
| P/B | 6.62 | ||
| P/tB | 17.74 | ||
| EV/EBITDA | 19.27 |
EPS(TTM)11.22
EY5.91%
EPS(NY)10.74
Fwd EY5.65%
FCF(TTM)10.43
FCFY5.49%
OCF(TTM)10.67
OCFY5.62%
SpS25
BVpS28.69
TBVpS10.71
PEG (NY)0.66
PEG (5Y)2.05
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 | 9.4 |
F-Score8
WACC9.22%
ROIC/WACC2.01
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 Year5.55%
EBIT Next 3Y5.88%
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.
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 16.93 and the Price/Book (PB) ratio is 6.62.
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.