188.52 USD
-0.92 (-0.49%)
188.52 USD
0 (0%)
Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 278 industry peers in the Software industry. CHKP gets an excellent profitability rating and is at the same time showing great financial health properties. CHKP may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make CHKP a good candidate for value and 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.
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.
1.2 Ratios
CHKP's Return On Assets of 17.72% is amongst the best of the industry. CHKP outperforms 93.88% of its industry peers.
CHKP has a Return On Equity of 32.79%. This is amongst the best in the industry. CHKP outperforms 92.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.51%, CHKP belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
CHKP had an Average Return On Invested Capital over the past 3 years of 20.07%. This 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 has a Profit Margin of 37.62%. This is amongst the best in the industry. CHKP outperforms 93.53% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
CHKP has a better Operating Margin (31.76%) than 93.53% 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 93.53% 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
CHKP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CHKP has less shares outstanding than it did 1 year ago.
CHKP has less shares outstanding than it did 5 years ago.
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.
2.2 Solvency
CHKP has an Altman-Z score of 9.29. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.29, CHKP belongs to the best of the industry, outperforming 86.33% 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 | 9.29 |
ROIC/WACC2.05
WACC9.01%
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.
The Current ratio of CHKP (1.19) is worse than 66.55% of its industry peers.
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 65.47% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
CHKP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.31%.
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
Based on estimates for the next years, CHKP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.82% on average per year.
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 16.80, the valuation of CHKP can be described as correct.
CHKP's Price/Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 78.78% of the companies in the same industry.
CHKP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.56, CHKP is valued on the expensive side.
CHKP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 77.70% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. CHKP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
CHKP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHKP is cheaper than 81.30% of the companies in the same industry.
CHKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CHKP is cheaper than 81.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 18.8 |
4.3 Compensation for Growth
CHKP's 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)0.66
PEG (5Y)2.03
EPS Next 2Y8.27%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
188.52
-0.92 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.84%
Inst Owner Change0.29%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap20.24B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts73.02
Price Target231.99 (23.06%)
Short Float %5.23%
Short Ratio4.65
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)2.22%
PT rev (3m)2.04%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-4.12%
EPS NY rev (1m)1.48%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.8 | ||
| Fwd PE | 17.56 | ||
| P/S | 7.54 | ||
| P/FCF | 18.07 | ||
| P/OCF | 17.66 | ||
| P/B | 6.57 | ||
| P/tB | 17.6 | ||
| EV/EBITDA | 18.8 |
EPS(TTM)11.22
EY5.95%
EPS(NY)10.74
Fwd EY5.7%
FCF(TTM)10.43
FCFY5.53%
OCF(TTM)10.67
OCFY5.66%
SpS25
BVpS28.69
TBVpS10.71
PEG (NY)0.66
PEG (5Y)2.03
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 | 9.29 |
F-Score8
WACC9.01%
ROIC/WACC2.05
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 Year5.28%
EBIT Next 3Y5.69%
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 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 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 16.8 and the Price/Book (PB) ratio is 6.57.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.