NasdaqGS:CHKP

Stock Analysis Report

Check Point Software Technologies

Executive Summary

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Check Point Software Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

CHKP

0.5%

US Software

2.3%

US Market


1 Year Return

-3.5%

CHKP

19.6%

US Software

5.6%

US Market

Return vs Industry: CHKP underperformed the US Software industry which returned 19.6% over the past year.

Return vs Market: CHKP underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

CHKPIndustryMarket
7 Day-1.8%0.5%2.3%
30 Day-2.5%0.05%-1.0%
90 Day-7.4%-3.8%-0.7%
1 Year-3.5%-3.5%21.3%19.6%7.9%5.6%
3 Year40.2%40.2%120.2%111.6%45.6%36.3%
5 Year60.6%60.6%177.4%157.4%65.8%47.6%

Price Volatility Vs. Market

How volatile is Check Point Software Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Check Point Software Technologies undervalued compared to its fair value and its price relative to the market?

20.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CHKP ($108.2) is trading above our estimate of fair value ($103.6)

Significantly Undervalued: CHKP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CHKP is good value based on its PE Ratio (20.9x) compared to the Software industry average (47.5x).

PE vs Market: CHKP is poor value based on its PE Ratio (20.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CHKP is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: CHKP is good value based on its PB Ratio (4.5x) compared to the US Software industry average (5.4x).


Next Steps

Future Growth

How is Check Point Software Technologies forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHKP's forecast earnings growth (4.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CHKP's earnings (4.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CHKP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHKP's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CHKP's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CHKP's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Check Point Software Technologies performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHKP's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: CHKP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHKP had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Software industry average (19.1%).


Return on Equity

High ROE: CHKP's Return on Equity (21.9%) is considered high.


Return on Assets

ROA vs Industry: CHKP has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: CHKP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Check Point Software Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: CHKP's short term assets ($2.0B) exceeds its short term liabilities ($1.3B)

Long Term Liabilities: CHKP's short term assets (2.0B) exceeds its long term liabilities (787.7M)


Debt to Equity History and Analysis

Debt Level: CHKP is debt free.

Reducing Debt: CHKP has not had any debt for past 5 years.

Debt Coverage: CHKP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CHKP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CHKP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CHKP's debt is covered by short term assets.


Next Steps

Dividend

What is Check Point Software Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CHKP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CHKP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CHKP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CHKP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHKP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Check Point Software Technologies's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Gil Shwed (50yo)

26.3yrs

Tenure

US$28,800

Compensation

Mr. Gil Shwed is a Co-founder of Check Point Software Technologies Ltd. Mr. Shwed has been Chief Executive Officer of Check Point Software Technologies Ltd. since July 1993 and served as its Executive Chai ...


CEO Compensation Analysis

Compensation vs. Market: Gil's total compensation ($USD28.80K) is too low to compare against companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Gil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: CHKP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

14.3yrs

Average Tenure

63yo

Average Age

Experienced Board: CHKP's board of directors are seasoned and experienced ( 14.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Marius Nacht

    Co-Founder & Non-Executive Chairman

    • Tenure: 4.1yrs
  • Gil Shwed (50yo)

    Founder

    • Tenure: 26.3yrs
    • Compensation: US$28.80k
  • Peter Alexander

    Chief Marketing Officer

    • Tenure: 1yrs
  • Tal Payne (47yo)

    CFO & COO

    • Tenure: 11.8yrs
    • Compensation: US$772.40k
  • John Slavitt

    General Counsel

    • Tenure: 0yrs
  • Dan Yerushalmi (55yo)

    Chief Customer Officer

    • Tenure: 1.3yrs
    • Compensation: US$557.10k
  • Chris Scanlan

    President of Americas Sales

    • Tenure: 0.3yrs
  • Miryam Steinitz

    Head of Human Resources

    • Tenure: 0yrs
    • Compensation: US$400.40k
  • Ran Vered (40yo)

    VP of Finance and Head of Accounting & Taxes

    • Tenure: 0yrs
  • Kip Meintzer

    Head of Global Investor Relations

    • Tenure: 0yrs

Board Members

  • Ray Rothrock (62yo)

    Director

    • Tenure: 24.8yrs
  • Irwin Federman (83yo)

    Director

    • Tenure: 24.8yrs
  • Marius Nacht

    Co-Founder & Non-Executive Chairman

    • Tenure: 4.1yrs
  • Jerry Ungerman (74yo)

    Vice Chairman of the Board

    • Tenure: 14.8yrs
  • Gil Shwed (50yo)

    Founder

    • Tenure: 26.3yrs
    • Compensation: US$28.80k
  • Yoav Chelouche (64yo)

    Director

    • Tenure: 13.8yrs
  • Guy Gecht (54yo)

    Director

    • Tenure: 13.8yrs
  • Tal Shavit

    Director

    • Tenure: 19.8yrs
  • Dan Propper (78yo)

    Director

    • Tenure: 13.8yrs
  • Shai Weiss (51yo)

    Director

    • Tenure: 0.8yrs

Company Information

Check Point Software Technologies Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Check Point Software Technologies Ltd.
  • Ticker: CHKP
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$16.472b
  • Shares outstanding: 152.24m
  • Website: https://www.checkpoint.com

Number of Employees


Location

  • Check Point Software Technologies Ltd.
  • 5 Shlomo Kaplan Street
  • Tel Aviv
  • 6789159
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHKPNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDJun 1996
CPWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1996
CHKP NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1996
CHKPWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1996

Biography

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a portfolio of network security, endpoint security, dat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:46
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.