CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
192.1 USD
-5.42 (-2.74%)
192.1 USD
0 (0%)
CHKP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 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 has a decent growth rate and is not valued too expensively. This makes CHKP very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year CHKP was profitable.
CHKP had a positive operating cash flow in the past year.
In the past 5 years CHKP has always been profitable.
In the past 5 years CHKP always reported a positive cash flow from operatings.
1.2 Ratios
CHKP has a better Return On Assets (17.72%) than 93.24% of its industry peers.
With an excellent Return On Equity value of 32.79%, CHKP belongs to the best of the industry, outperforming 92.53% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.51%, CHKP belongs to the best of the industry, outperforming 92.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHKP is significantly above the industry average of 12.07%.
| 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
With an excellent Profit Margin value of 37.62%, CHKP belongs to the best of the industry, outperforming 93.59% of the companies in the same industry.
In the last couple of years the Profit Margin of CHKP has declined.
CHKP has a Operating Margin of 31.76%. This is amongst the best in the industry. CHKP outperforms 93.95% 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 94.31% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CHKP is creating value.
Compared to 1 year ago, CHKP has less shares outstanding
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 9.56. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.56, CHKP belongs to the top of the industry, outperforming 87.54% 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 | 9.56 |
ROIC/WACC2.02
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, CHKP is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
A Quick Ratio of 1.19 indicates that CHKP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.19, CHKP is doing worse than 64.06% of the companies in the same industry.
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.
Looking at the last year, CHKP shows a small growth in Revenue. The Revenue has grown by 6.31% 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)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.
The Revenue is expected to grow by 6.81% on average over the next years.
EPS Next Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
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.
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
Based on the Price/Earnings ratio of 17.12, the valuation of CHKP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 77.94% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. CHKP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.83, CHKP is valued on the expensive side.
75.09% of the companies in the same industry are more expensive than CHKP, based on the Price/Forward Earnings ratio.
CHKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 17.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than 79.36% 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 79.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.59 | ||
| EV/EBITDA | 20.03 |
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.
The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)0.72
PEG (5Y)2.07
EPS Next 2Y8.46%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
192.1
-5.42 (-2.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change-2.28%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap20.82B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts72.73
Price Target226.95 (18.14%)
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)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)-0.18%
PT rev (3m)-1.53%
EPS NQ rev (1m)-4.04%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)12.19%
EPS NY rev (3m)12.33%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 17.83 | ||
| P/S | 7.76 | ||
| P/FCF | 18.59 | ||
| P/OCF | 18.17 | ||
| P/B | 6.76 | ||
| P/tB | 18.1 | ||
| EV/EBITDA | 20.03 |
EPS(TTM)11.22
EY5.84%
EPS(NY)10.77
Fwd EY5.61%
FCF(TTM)10.33
FCFY5.38%
OCF(TTM)10.57
OCFY5.5%
SpS24.77
BVpS28.42
TBVpS10.61
PEG (NY)0.72
PEG (5Y)2.07
Graham Number84.7
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 | 9.56 |
F-Score8
WACC9.16%
ROIC/WACC2.02
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 Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
Revenue Next 5Y6.81%
EBIT growth 1Y-2.4%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year6.62%
EBIT Next 3Y5.34%
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 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 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 17.12 and the Price/Book (PB) ratio is 6.76.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.