CHECK POINT SOFTWARE TECH (CHKP) Stock Fundamental Analysis
USA - NASDAQ:CHKP - IL0010824113 - Common Stock
200.29 USD
+3.77 (+1.92%)
200 USD
-0.29 (-0.14%)
CHKP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 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. These ratings would make CHKP suitable 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.
CHKP had positive earnings in each of the past 5 years.
Each year in the past 5 years CHKP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.72%, CHKP belongs to the top of the industry, outperforming 92.88% of the companies in the same industry.
The Return On Equity of CHKP (32.79%) is better than 92.17% 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 92.88% 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 11.82%.
| 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 better Profit Margin (37.62%) than 93.24% of its industry peers.
In the last couple of years the Profit Margin of CHKP has declined.
Looking at the Operating Margin, with a value of 31.76%, CHKP belongs to the top of the industry, outperforming 93.95% of the companies in the same industry.
CHKP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 86.81%, CHKP belongs to the top of the industry, outperforming 94.31% 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 | 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
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.
The number of shares outstanding for CHKP has been reduced compared to 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
An Altman-Z score of 9.63 indicates that CHKP is not in any danger for bankruptcy at the moment.
CHKP has a Altman-Z score of 9.63. This is amongst the best in the industry. CHKP outperforms 85.77% 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 | 9.63 |
ROIC/WACC2.07
WACC8.96%
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 64.41% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that CHKP should not have too much problems paying 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 63.35% 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
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%.
CHKP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
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 Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
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
Based on the Price/Earnings ratio of 17.85, the valuation of CHKP can be described as rather expensive.
78.29% of the companies in the same industry are more expensive than CHKP, based on the Price/Earnings ratio.
CHKP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
Based on the Price/Forward Earnings ratio of 18.59, the valuation of CHKP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CHKP is valued a bit cheaper than the industry average as 76.16% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CHKP to the average of the S&P500 Index (32.73), we can say CHKP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 79.36% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHKP indicates a somewhat cheap valuation: CHKP is cheaper than 79.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.38 | ||
| EV/EBITDA | 20.34 |
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.
CHKP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)2.16
EPS Next 2Y8.46%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
CHKP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
200.29
+3.77 (+1.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change0.47%
Ins Owners22.95%
Ins Owner ChangeN/A
Market Cap21.71B
Revenue(TTM)2.68B
Net Income(TTM)1.01B
Analysts72.73
Price Target226.95 (13.31%)
Short Float %3.33%
Short Ratio3.7
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)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)-0.18%
PT rev (3m)-1.53%
EPS NQ rev (1m)-4.03%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)12.19%
EPS NY rev (3m)12.33%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 18.59 | ||
| P/S | 8.09 | ||
| P/FCF | 19.38 | ||
| P/OCF | 18.94 | ||
| P/B | 7.05 | ||
| P/tB | 18.87 | ||
| EV/EBITDA | 20.34 |
EPS(TTM)11.22
EY5.6%
EPS(NY)10.77
Fwd EY5.38%
FCF(TTM)10.33
FCFY5.16%
OCF(TTM)10.57
OCFY5.28%
SpS24.77
BVpS28.42
TBVpS10.61
PEG (NY)0.75
PEG (5Y)2.16
Graham Number84.7
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 | 9.63 |
F-Score8
WACC8.96%
ROIC/WACC2.07
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 Y23.75%
EPS Next 2Y8.46%
EPS Next 3Y8.91%
EPS Next 5Y11.82%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y5.78%
Revenue growth 5Y5.16%
Sales Q2Q%6.68%
Revenue Next Year6.47%
Revenue Next 2Y6.2%
Revenue Next 3Y6.08%
Revenue Next 5Y6.81%
EBIT growth 1Y-2.4%
EBIT growth 3Y-1.17%
EBIT growth 5Y-0.13%
EBIT Next Year6.62%
EBIT Next 3Y5.34%
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 6 / 10 to CHECK POINT SOFTWARE TECH (CHKP). This can be considered as Fairly Valued.
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 17.85 and the Price/Book (PB) ratio is 7.05.
Can you provide the financial health for CHKP stock?
The financial health rating of CHECK POINT SOFTWARE TECH (CHKP) is 9 / 10.