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CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis

NASDAQ:CHKP - Nasdaq - IL0010824113 - Common Stock - Currency: USD

218.93  -4.02 (-1.8%)

After market: 218.5 -0.43 (-0.2%)

Fundamental Rating

7

Taking everything into account, CHKP scores 7 out of 10 in our fundamental rating. CHKP was compared to 284 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 has a decent growth rate and is not valued too expensively. This makes CHKP very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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8

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

CHKP has a Return On Assets of 15.34%. This is amongst the best in the industry. CHKP outperforms 91.55% of its industry peers.
CHKP has a better Return On Equity (31.02%) than 91.20% of its industry peers.
The Return On Invested Capital of CHKP (20.13%) is better than 94.01% 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 12.30%.
The last Return On Invested Capital (20.13%) for CHKP is above the 3 year average (20.07%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 15.34%
ROE 31.02%
ROIC 20.13%
ROA(3y)14.46%
ROA(5y)14.34%
ROE(3y)29.1%
ROE(5y)27.36%
ROIC(3y)20.07%
ROIC(5y)19.43%
CHKP Yearly ROA, ROE, ROICCHKP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

The Profit Margin of CHKP (32.75%) is better than 95.42% of its industry peers.
CHKP's Profit Margin has declined in the last couple of years.
The Operating Margin of CHKP (33.70%) is better than 96.13% of its industry peers.
In the last couple of years the Operating Margin of CHKP has declined.
The Gross Margin of CHKP (87.23%) is better than 95.07% of its industry peers.
CHKP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 33.7%
PM (TTM) 32.75%
GM 87.23%
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%
CHKP Yearly Profit, Operating, Gross MarginsCHKP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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9

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.
Compared to 1 year ago, CHKP has less shares outstanding
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.
CHKP Yearly Shares OutstandingCHKP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
CHKP Yearly Total Debt VS Total AssetsCHKP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 9.67 indicates that CHKP is not in any danger for bankruptcy at the moment.
CHKP has a Altman-Z score of 9.67. This is amongst the best in the industry. CHKP outperforms 85.21% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.67
ROIC/WACC2.1
WACC9.58%
CHKP Yearly LT Debt VS Equity VS FCFCHKP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.10 indicates that CHKP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.10, CHKP is not doing good in the industry: 70.07% of the companies in the same industry are doing better.
A Quick Ratio of 1.10 indicates that CHKP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, CHKP is doing worse than 69.01% 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 RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
CHKP Yearly Current Assets VS Current LiabilitesCHKP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.49% over the past year.
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 6.40% in the last year.
CHKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
EPS 1Y (TTM)7.49%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%8.33%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.51%

3.2 Future

The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
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 Y10.29%
EPS Next 2Y9.86%
EPS Next 3Y10.64%
EPS Next 5Y11.82%
Revenue Next Year6.13%
Revenue Next 2Y5.99%
Revenue Next 3Y6.13%
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.
CHKP Yearly Revenue VS EstimatesCHKP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B
CHKP Yearly EPS VS EstimatesCHKP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.47 indicates a rather expensive valuation of CHKP.
CHKP's Price/Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 76.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. CHKP is around the same levels.
A Price/Forward Earnings ratio of 19.80 indicates a rather expensive valuation of CHKP.
CHKP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHKP is cheaper than 73.59% of the companies in the same industry.
CHKP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
Industry RankSector Rank
PE 23.47
Fwd PE 19.8
CHKP Price Earnings VS Forward Price EarningsCHKP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CHKP is valued a bit cheaper than 79.58% of the companies in the same industry.
79.23% of the companies in the same industry are more expensive than CHKP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.55
EV/EBITDA 22.03
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHKP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CHKP may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)2.84
EPS Next 2Y9.86%
EPS Next 3Y10.64%

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0

5. Dividend

5.1 Amount

No dividends for CHKP!.
Industry RankSector Rank
Dividend Yield N/A

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CHECK POINT SOFTWARE TECH

NASDAQ:CHKP (6/13/2025, 8:00:00 PM)

After market: 218.5 -0.43 (-0.2%)

218.93

-4.02 (-1.8%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-22 2025-07-22/bmo
Inst Owners69.63%
Inst Owner Change-2.84%
Ins Owners22.96%
Ins Owner ChangeN/A
Market Cap23.73B
Analysts72.61
Price Target240.77 (9.98%)
Short Float %3.91%
Short Ratio3.57
Dividend
Industry RankSector 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)-0.58%
Min EPS beat(2)-0.88%
Max EPS beat(2)-0.28%
EPS beat(4)0
Avg EPS beat(4)-1.14%
Min EPS beat(4)-1.99%
Max EPS beat(4)-0.28%
EPS beat(8)3
Avg EPS beat(8)0.11%
EPS beat(12)6
Avg EPS beat(12)0.65%
EPS beat(16)10
Avg EPS beat(16)0.91%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-1.54%
Revenue beat(12)0
Avg Revenue beat(12)-1.44%
Revenue beat(16)1
Avg Revenue beat(16)-1.24%
PT rev (1m)0.15%
PT rev (3m)2.77%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 23.47
Fwd PE 19.8
P/S 9.11
P/FCF 21.55
P/OCF 21.07
P/B 8.63
P/tB 27.25
EV/EBITDA 22.03
EPS(TTM)9.33
EY4.26%
EPS(NY)11.05
Fwd EY5.05%
FCF(TTM)10.16
FCFY4.64%
OCF(TTM)10.39
OCFY4.75%
SpS24.03
BVpS25.36
TBVpS8.03
PEG (NY)2.28
PEG (5Y)2.84
Profitability
Industry RankSector Rank
ROA 15.34%
ROE 31.02%
ROCE 23.26%
ROIC 20.13%
ROICexc 32.87%
ROICexgc 175.37%
OM 33.7%
PM (TTM) 32.75%
GM 87.23%
FCFM 42.27%
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 Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 28.78%
Cap/Sales 0.96%
Interest Coverage 250
Cash Conversion 116.7%
Profit Quality 129.1%
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z 9.67
F-Score7
WACC9.58%
ROIC/WACC2.1
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)7.49%
EPS 3Y9.12%
EPS 5Y8.26%
EPS Q2Q%8.33%
EPS Next Y10.29%
EPS Next 2Y9.86%
EPS Next 3Y10.64%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.51%
Revenue Next Year6.13%
Revenue Next 2Y5.99%
Revenue Next 3Y6.13%
Revenue Next 5Y6.81%
EBIT growth 1Y-1.75%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year5.99%
EBIT Next 3Y6.51%
EBIT Next 5Y6.73%
FCF growth 1Y-5.14%
FCF growth 3Y-4.7%
FCF growth 5Y-0.95%
OCF growth 1Y-4.75%
OCF growth 3Y-4.38%
OCF growth 5Y-0.96%