CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
195.19 USD
-1.35 (-0.69%)
195.19 USD
0 (0%)
Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 280 industry peers in the Software industry. CHKP gets an excellent profitability rating and is at the same time showing great financial health properties. CHKP has a correct valuation and a medium 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.
Each year in the past 5 years CHKP has been profitable.
CHKP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHKP has a better Return On Assets (15.09%) than 91.79% of its industry peers.
Looking at the Return On Equity, with a value of 30.27%, CHKP belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.22%, CHKP belongs to the top of the industry, outperforming 93.57% 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 11.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.09% | ||
| ROE | 30.27% | ||
| ROIC | 19.22% |
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
Looking at the Profit Margin, with a value of 32.48%, CHKP belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
In the last couple of years the Profit Margin of CHKP has declined.
With an excellent Operating Margin value of 33.00%, CHKP belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Operating Margin of CHKP has declined.
With an excellent Gross Margin value of 86.92%, CHKP belongs to the best of the industry, outperforming 94.29% 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 | 33% | ||
| PM (TTM) | 32.48% | ||
| GM | 86.92% |
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.
The number of shares outstanding for CHKP has been reduced compared to 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 9.07 indicates that CHKP is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHKP (9.07) is better than 83.93% 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 | 9.07 |
ROIC/WACC2.12
WACC9.07%
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.
Looking at the Current ratio, with a value of 1.19, CHKP is doing worse than 62.86% of the companies in the same industry.
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.
CHKP's Quick ratio of 1.19 is on the low side compared to the rest of the industry. CHKP is outperformed by 62.50% of its industry peers.
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 small growth in Earnings Per Share. In the last year, the EPS has grown by 7.68%.
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.
CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.27%.
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)7.68%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%9.22%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
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 Y10.23%
EPS Next 2Y9.22%
EPS Next 3Y9.68%
EPS Next 5Y11.82%
Revenue Next Year6.17%
Revenue Next 2Y5.9%
Revenue Next 3Y5.83%
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.
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
With a Price/Earnings ratio of 20.48, CHKP is valued on the expensive side.
Based on the Price/Earnings ratio, CHKP is valued a bit cheaper than the industry average as 76.79% of the companies are valued more expensively.
CHKP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 17.86, which indicates a rather expensive current 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 79.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, CHKP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 17.86 |
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 81.07% of the companies listed in the same industry.
84.29% of the companies in the same industry are more expensive than CHKP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 19.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)2
PEG (5Y)2.48
EPS Next 2Y9.22%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
No dividends for CHKP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
195.19
-1.35 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.34%
Inst Owner Change-1.59%
Ins Owners22.96%
Ins Owner ChangeN/A
Market Cap21.15B
Analysts73.04
Price Target228.08 (16.85%)
Short Float %3.68%
Short Ratio3.36
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)0
Avg EPS beat(2)-1.29%
Min EPS beat(2)-1.7%
Max EPS beat(2)-0.88%
EPS beat(4)0
Avg EPS beat(4)-1.21%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.28%
EPS beat(8)2
Avg EPS beat(8)-0.53%
EPS beat(12)6
Avg EPS beat(12)0.55%
EPS beat(16)9
Avg EPS beat(16)0.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.47%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.23%
PT rev (1m)-1.04%
PT rev (3m)-5.13%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 17.86 | ||
| P/S | 8.01 | ||
| P/FCF | 18.17 | ||
| P/OCF | 17.79 | ||
| P/B | 7.46 | ||
| P/tB | 23.88 | ||
| EV/EBITDA | 19.53 |
EPS(TTM)9.53
EY4.88%
EPS(NY)10.93
Fwd EY5.6%
FCF(TTM)10.74
FCFY5.5%
OCF(TTM)10.97
OCFY5.62%
SpS24.38
BVpS26.16
TBVpS8.17
PEG (NY)2
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.09% | ||
| ROE | 30.27% | ||
| ROCE | 22.21% | ||
| ROIC | 19.22% | ||
| ROICexc | 31.42% | ||
| ROICexgc | 166.54% | ||
| OM | 33% | ||
| PM (TTM) | 32.48% | ||
| GM | 86.92% | ||
| FCFM | 44.06% |
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%
ROICexcg growth 3Y30.18%
ROICexcg 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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 26.44% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.09% | ||
| Profit Quality | 135.64% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 9.07 |
F-Score7
WACC9.07%
ROIC/WACC2.12
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)7.68%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%9.22%
EPS Next Y10.23%
EPS Next 2Y9.22%
EPS Next 3Y9.68%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
Revenue Next Year6.17%
Revenue Next 2Y5.9%
Revenue Next 3Y5.83%
Revenue Next 5Y6.81%
EBIT growth 1Y-1.04%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year5.55%
EBIT Next 3Y5.02%
EBIT Next 5Y5.86%
FCF growth 1Y0.42%
FCF growth 3Y-4.7%
FCF growth 5Y-0.95%
OCF growth 1Y0.95%
OCF growth 3Y-4.38%
OCF growth 5Y-0.96%