CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation
NASDAQ:CHKP • IL0010824113
Current stock price
This CHKP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CHKP Profitability Analysis
1.1 Basic Checks
- In the past year CHKP was profitable.
- 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.
1.2 Ratios
- CHKP has a better Return On Assets (13.54%) than 91.37% of its industry peers.
- With an excellent Return On Equity value of 36.67%, CHKP belongs to the best of the industry, outperforming 93.17% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.32%, CHKP belongs to the top of the industry, outperforming 88.85% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CHKP is significantly above the industry average of 10.92%.
- The last Return On Invested Capital (12.32%) for CHKP is well below the 3 year average (17.67%), which needs to be investigated, but indicates that CHKP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 36.67% | ||
| ROIC | 12.32% |
1.3 Margins
- Looking at the Profit Margin, with a value of 38.78%, CHKP belongs to the top of the industry, outperforming 94.60% of the companies in the same industry.
- CHKP's Profit Margin has been stable in the last couple of years.
- CHKP's Operating Margin of 30.49% is amongst the best of the industry. CHKP outperforms 94.24% of its industry peers.
- CHKP's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 86.72%, CHKP belongs to the top of the industry, outperforming 93.53% of the companies in the same industry.
- 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 | 30.49% | ||
| PM (TTM) | 38.78% | ||
| GM | 86.72% |
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.
- The number of shares outstanding for CHKP has been reduced compared to 5 years ago.
- CHKP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.58 indicates that CHKP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.58, CHKP belongs to the best of the industry, outperforming 80.94% of the companies in the same industry.
- The Debt to FCF ratio of CHKP is 1.59, which is an excellent value as it means it would take CHKP, only 1.59 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.59, CHKP is doing good in the industry, outperforming 69.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.68 indicates that CHKP is somewhat dependend on debt financing.
- CHKP has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: CHKP underperforms 69.06% of its industry peers.
- Even though the debt/equity ratio score it not favorable for CHKP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 5.58 |
2.3 Liquidity
- A Current Ratio of 2.05 indicates that CHKP has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.05, CHKP is in line with its industry, outperforming 58.99% of the companies in the same industry.
- 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. CHKP Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 30.13% 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 11.85% on average per year.
- The Revenue has been growing slightly by 6.25% in the past year.
- The Revenue has been growing slightly by 5.71% on average over the past years.
3.2 Future
- The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.62% on average over the next years.
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. CHKP Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.67 indicates a reasonable valuation of CHKP.
- Compared to the rest of the industry, the Price/Earnings ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 85.97% of the companies listed in the same industry.
- CHKP is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.06 indicates a correct valuation of CHKP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 78.06% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.51, CHKP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than 79.86% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 84.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
- CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
5. CHKP Dividend Analysis
5.1 Amount
- No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CHKP Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:CHKP (3/27/2026, 12:34:59 PM)
139.05
-3.77 (-2.64%)
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 13.06 | ||
| P/S | 5.48 | ||
| P/FCF | 12.05 | ||
| P/OCF | 11.8 | ||
| P/B | 5.18 | ||
| P/tB | 19.55 | ||
| EV/EBITDA | 14.15 |
| Industry Rank | Sector 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% |
| Industry Rank | Sector 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 | 5.58 |
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 11.67 and the Price/Book (PB) ratio is 5.18.
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.