CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
201.57 USD
-3.4 (-1.66%)
201.57 USD
0 (0%)
Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 281 industry peers in the Software industry. CHKP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CHKP is not valued too expensively and it also shows a decent growth rate. These ratings could make CHKP a good candidate 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's Return On Assets of 15.09% is amongst the best of the industry. CHKP outperforms 91.81% of its industry peers.
The Return On Equity of CHKP (30.27%) is better than 92.53% of its industry peers.
The Return On Invested Capital of CHKP (19.22%) is better than 93.24% 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 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
CHKP has a better Profit Margin (32.48%) than 92.17% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
CHKP has a Operating Margin of 33.00%. This is amongst the best in the industry. CHKP outperforms 94.31% of its industry peers.
CHKP's Operating Margin has declined in the last couple of years.
CHKP's Gross Margin of 86.92% is amongst the best of the industry. CHKP outperforms 94.31% of its industry peers.
CHKP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, CHKP has less shares outstanding
Compared to 5 years ago, CHKP has less shares outstanding
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 9.26. This indicates that CHKP is financially healthy and has little risk of bankruptcy at the moment.
CHKP has a better Altman-Z score (9.26) than 83.99% 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 | 9.26 |
ROIC/WACC2.01
WACC9.54%
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 62.99% 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 has a worse Quick ratio (1.19) than 62.63% of its industry peers.
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
CHKP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.68%.
The Earnings Per Share has been growing by 8.26% on average over the past years. This is quite good.
Looking at the last year, CHKP shows a small growth in Revenue. The Revenue has grown by 6.27% in the last year.
The Revenue has been growing slightly by 5.16% on average over the past years.
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
CHKP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.82% yearly.
Based on estimates for the next years, CHKP will show a small growth in Revenue. The Revenue will grow by 6.81% on average per year.
EPS Next Y10.3%
EPS Next 2Y9.24%
EPS Next 3Y9.7%
EPS Next 5Y11.82%
Revenue Next Year6.2%
Revenue Next 2Y5.9%
Revenue Next 3Y5.86%
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 21.15, CHKP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 75.80% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CHKP to the average of the S&P500 Index (27.86), we can say CHKP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.44, the valuation of CHKP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than 76.87% of the companies in the same industry.
CHKP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
79.36% of the companies in the same industry are more expensive than CHKP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CHKP is valued cheaply inside the industry as 81.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.77 | ||
| EV/EBITDA | 20.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHKP does not grow enough to justify the current Price/Earnings ratio.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)2.56
EPS Next 2Y9.24%
EPS Next 3Y9.7%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
201.57
-3.4 (-1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change-1.56%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap21.84B
Analysts73.04
Price Target227.36 (12.79%)
Short Float %3.32%
Short Ratio2.93
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)-0.76%
PT rev (3m)-5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 18.44 | ||
| P/S | 8.27 | ||
| P/FCF | 18.77 | ||
| P/OCF | 18.38 | ||
| P/B | 7.71 | ||
| P/tB | 24.66 | ||
| EV/EBITDA | 20.48 |
EPS(TTM)9.53
EY4.73%
EPS(NY)10.93
Fwd EY5.42%
FCF(TTM)10.74
FCFY5.33%
OCF(TTM)10.97
OCFY5.44%
SpS24.38
BVpS26.16
TBVpS8.17
PEG (NY)2.05
PEG (5Y)2.56
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 | 9.26 |
F-Score7
WACC9.54%
ROIC/WACC2.01
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 Y10.3%
EPS Next 2Y9.24%
EPS Next 3Y9.7%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.02%
Revenue Next Year6.2%
Revenue Next 2Y5.9%
Revenue Next 3Y5.86%
Revenue Next 5Y6.81%
EBIT growth 1Y-1.04%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year6.62%
EBIT Next 3Y5.34%
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%