CHECK POINT SOFTWARE TECH (CHKP) Fundamental Analysis & Valuation

NASDAQ:CHKP • IL0010824113

Current stock price

134.67 USD
+0.85 (+0.64%)
At close:
134.67 USD
0 (0%)
After Hours:

This CHKP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. CHKP Profitability Analysis

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.
CHKP Yearly Net Income VS EBIT VS OCF VS FCFCHKP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • With an excellent Return On Assets value of 13.54%, CHKP belongs to the best of the industry, outperforming 90.81% of the companies in the same industry.
  • The Return On Equity of CHKP (36.67%) is better than 93.01% of its industry peers.
  • CHKP has a Return On Invested Capital of 12.32%. This is amongst the best in the industry. CHKP outperforms 88.60% 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 10.92%.
  • The 3 year average ROIC (17.67%) for CHKP is well above the current ROIC(12.32%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 13.54%
ROE 36.67%
ROIC 12.32%
ROA(3y)14.33%
ROA(5y)14.15%
ROE(3y)32.26%
ROE(5y)29.8%
ROIC(3y)17.67%
ROIC(5y)18.33%
CHKP Yearly ROA, ROE, ROICCHKP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • CHKP has a better Profit Margin (38.78%) than 95.59% of its industry peers.
  • CHKP's Profit Margin has been stable in the last couple of years.
  • CHKP has a Operating Margin of 30.49%. This is amongst the best in the industry. CHKP outperforms 94.12% of its industry peers.
  • In the last couple of years the Operating Margin of CHKP has declined.
  • CHKP has a better Gross Margin (86.72%) than 93.01% of its industry peers.
  • CHKP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 30.49%
PM (TTM) 38.78%
GM 86.72%
OM growth 3Y-7.03%
OM growth 5Y-6.98%
PM growth 3Y4.27%
PM growth 5Y-1.11%
GM growth 3Y-0.08%
GM growth 5Y-0.52%
CHKP Yearly Profit, Operating, Gross MarginsCHKP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. CHKP Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHKP is creating value.
  • CHKP has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CHKP has less shares outstanding
  • Compared to 1 year ago, CHKP has a worse debt to assets ratio.
CHKP Yearly Shares OutstandingCHKP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CHKP Yearly Total Debt VS Total AssetsCHKP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • CHKP has an Altman-Z score of 5.41. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
  • CHKP's Altman-Z score of 5.41 is fine compared to the rest of the industry. CHKP outperforms 77.21% of its industry peers.
  • CHKP has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
  • The Debt to FCF ratio of CHKP (1.68) is better than 69.12% of its industry peers.
  • A Debt/Equity ratio of 0.68 indicates that CHKP is somewhat dependend on debt financing.
  • CHKP has a worse Debt to Equity ratio (0.68) than 68.75% of its industry peers.
  • Although CHKP's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 1.68
Altman-Z 5.41
ROIC/WACC1.4
WACC8.82%
CHKP Yearly LT Debt VS Equity VS FCFCHKP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • CHKP has a Current Ratio of 2.05. This indicates that CHKP is financially healthy and has no problem in meeting its short term obligations.
  • With a Current ratio value of 2.05, CHKP perfoms like the industry average, outperforming 59.19% of the companies in the same industry.
  • CHKP has a Quick Ratio of 2.05. This indicates that CHKP is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of CHKP (2.05) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 2.05
CHKP Yearly Current Assets VS Current LiabilitesCHKP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
  • The Revenue has been growing slightly by 5.71% on average over the past years.
EPS 1Y (TTM)30.13%
EPS 3Y17.01%
EPS 5Y11.85%
EPS Q2Q%25.93%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y5.37%
Revenue growth 5Y5.71%
Sales Q2Q%5.85%

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 15.55% yearly.
  • CHKP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y-10.66%
EPS Next 2Y-0.72%
EPS Next 3Y4.89%
EPS Next 5Y15.55%
Revenue Next Year6.15%
Revenue Next 2Y6.09%
Revenue Next 3Y6.23%
Revenue Next 5Y7.62%

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.
CHKP Yearly Revenue VS EstimatesCHKP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B 4B
CHKP Yearly EPS VS EstimatesCHKP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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Find the best growth stocksShow best growing peers

7

4. CHKP Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.30, the valuation of CHKP can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 86.76% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, CHKP is valued rather cheaply.
  • The Price/Forward Earnings ratio is 12.65, which indicates a correct valuation of CHKP.
  • 78.68% 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 (22.24), we can say CHKP is valued slightly cheaper.
Industry RankSector Rank
PE 11.3
Fwd PE 12.65
CHKP Price Earnings VS Forward Price EarningsCHKP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CHKP is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHKP indicates a rather cheap valuation: CHKP is cheaper than 85.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.97
EV/EBITDA 12.65
CHKP Per share dataCHKP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-0.72%
EPS Next 3Y4.89%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CHKP Dividend Analysis

5.1 Amount

  • No dividends for CHKP!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

CHKP Fundamentals: All Metrics, Ratios and Statistics

CHECK POINT SOFTWARE TECH

NASDAQ:CHKP (4/24/2026, 8:27:33 PM)

After market: 134.67 0 (0%)

134.67

+0.85 (+0.64%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)04-30
Inst Owners79.68%
Inst Owner Change-0.02%
Ins Owners23.86%
Ins Owner Change0%
Market Cap14.04B
Revenue(TTM)2.73B
Net Income(TTM)1.06B
Analysts73.33
Price Target203.13 (50.84%)
Short Float %6.38%
Short Ratio3.93
Dividend
Industry RankSector 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)2
Avg EPS beat(2)39.07%
Min EPS beat(2)20.55%
Max EPS beat(2)57.59%
EPS beat(4)2
Avg EPS beat(4)18.89%
Min EPS beat(4)-1.7%
Max EPS beat(4)57.59%
EPS beat(8)2
Avg EPS beat(8)8.96%
EPS beat(12)6
Avg EPS beat(12)6.59%
EPS beat(16)9
Avg EPS beat(16)5.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)-1.33%
Revenue beat(8)0
Avg Revenue beat(8)-1.54%
Revenue beat(12)0
Avg Revenue beat(12)-1.63%
Revenue beat(16)0
Avg Revenue beat(16)-1.41%
PT rev (1m)-2.48%
PT rev (3m)-11.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 11.3
Fwd PE 12.65
P/S 5.15
P/FCF 11.97
P/OCF 11.7
P/B 4.87
P/tB 18.38
EV/EBITDA 12.65
EPS(TTM)11.92
EY8.85%
EPS(NY)10.65
Fwd EY7.91%
FCF(TTM)11.25
FCFY8.36%
OCF(TTM)11.51
OCFY8.54%
SpS26.15
BVpS27.65
TBVpS7.33
PEG (NY)N/A
PEG (5Y)0.95
Graham Number86.1167 (-36.05%)
Profitability
Industry RankSector 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 43.03%
ROA(3y)14.33%
ROA(5y)14.15%
ROE(3y)32.26%
ROE(5y)29.8%
ROIC(3y)17.67%
ROIC(5y)18.33%
ROICexc(3y)29.91%
ROICexc(5y)31.12%
ROICexgc(3y)123.18%
ROICexgc(5y)102.82%
ROCE(3y)20.31%
ROCE(5y)21.07%
ROICexgc growth 3Y1.9%
ROICexgc growth 5Y11.23%
ROICexc growth 3Y-10.68%
ROICexc growth 5Y-4.16%
OM growth 3Y-7.03%
OM growth 5Y-6.98%
PM growth 3Y4.27%
PM growth 5Y-1.11%
GM growth 3Y-0.08%
GM growth 5Y-0.52%
F-Score5
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 1.68
Debt/EBITDA 2.13
Cap/Depr 28.63%
Cap/Sales 0.98%
Interest Coverage 250
Cash Conversion 129.81%
Profit Quality 110.97%
Current Ratio 2.05
Quick Ratio 2.05
Altman-Z 5.41
F-Score5
WACC8.82%
ROIC/WACC1.4
Cap/Depr(3y)32.27%
Cap/Depr(5y)41.93%
Cap/Sales(3y)0.9%
Cap/Sales(5y)0.87%
Profit Quality(3y)117.95%
Profit Quality(5y)126.92%
High Growth Momentum
Growth
EPS 1Y (TTM)30.13%
EPS 3Y17.01%
EPS 5Y11.85%
EPS Q2Q%25.93%
EPS Next Y-10.66%
EPS Next 2Y-0.72%
EPS Next 3Y4.89%
EPS Next 5Y15.55%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y5.37%
Revenue growth 5Y5.71%
Sales Q2Q%5.85%
Revenue Next Year6.15%
Revenue Next 2Y6.09%
Revenue Next 3Y6.23%
Revenue Next 5Y7.62%
EBIT growth 1Y-5.13%
EBIT growth 3Y-2.05%
EBIT growth 5Y-1.67%
EBIT Next Year4.73%
EBIT Next 3Y5.84%
EBIT Next 5YN/A
FCF growth 1Y14.06%
FCF growth 3Y2.9%
FCF growth 5Y0.54%
OCF growth 1Y13.97%
OCF growth 3Y2.97%
OCF growth 5Y0.65%

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.


What is the valuation status of CHECK POINT SOFTWARE TECH (CHKP) stock?

ChartMill assigns a valuation rating of 7 / 10 to CHECK POINT SOFTWARE TECH (CHKP). This can be considered as Undervalued.


How profitable is CHECK POINT SOFTWARE TECH (CHKP) stock?

CHECK POINT SOFTWARE TECH (CHKP) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for CHKP stock?

The Price/Earnings (PE) ratio for CHECK POINT SOFTWARE TECH (CHKP) is 11.3 and the Price/Book (PB) ratio is 4.87.


Can you provide the financial health for CHKP stock?

The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 7 / 10.