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CHKP

Check Point Software Technologies NasdaqGS:CHKP Stock Report

Last Price

US$123.29

Market Cap

US$15.8b

7D

1.4%

1Y

4.3%

Updated

25 May, 2022

Data

Company Financials +
CHKP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends0/6

CHKP Stock Overview

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

Rewards

Trading at 29% below our estimate of its fair value

Earnings are forecast to grow 4.4% per year

Risk Analysis

No risks detected for CHKP from our risk checks.

Check Point Software Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Check Point Software Technologies
Historical stock prices
Current Share PriceUS$123.29
52 Week HighUS$149.62
52 Week LowUS$107.85
Beta0.64
1 Month Change-11.21%
3 Month Change-10.80%
1 Year Change4.27%
3 Year Change8.97%
5 Year Change10.03%
Change since IPO2,982.25%

Recent News & Updates

May 24
An Intrinsic Calculation For Check Point Software Technologies Ltd. (NASDAQ:CHKP) Suggests It's 28% Undervalued

An Intrinsic Calculation For Check Point Software Technologies Ltd. (NASDAQ:CHKP) Suggests It's 28% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Check Point Software...

May 03

Fight Inflation With Check Point Software Technologies, Inc.

Check Point Software Technologies Ltd. is our top pick for building an inflation bulwark in any investment portfolio. The stock is up 8.15% for one year and 23.15% over the past five years. It reported a healthy first quarter; it's forecasted to grow revenue and earnings next quarter. Increasing demand for cybersecurity services is unavoidable and companies will pay the going price to thwart hackers and leaks.

Apr 25
Check Point Software Technologies (NASDAQ:CHKP) Hasn't Managed To Accelerate Its Returns

Check Point Software Technologies (NASDAQ:CHKP) Hasn't Managed To Accelerate Its Returns

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Apr 24

Check Point Software: The Cyber Security Stock You Cannot Miss

Check Point Software Technologies Ltd is the largest Israeli traded company providing cybersecurity-related products and services throughout the global markets. CHKP operates within the highly dynamic cybersecurity market, which is forecasted to grow to over $400 billion by 2027. Check Point has an attractive financial record that offers stable growth to its investors with increasing revenues coupled with share buybacks to enhance value. Amongst the dynamic list of Israeli tech stocks, CHKP offers the highest value potential for its shareholders through its superior returns and undervalued market price.

Shareholder Returns

CHKPUS SoftwareUS Market
7D1.4%3.4%1.0%
1Y4.3%-14.3%-15.1%

Return vs Industry: CHKP exceeded the US Software industry which returned -15.5% over the past year.

Return vs Market: CHKP exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is CHKP's price volatile compared to industry and market?
CHKP volatility
CHKP Average Weekly Movement4.5%
Software Industry Average Movement10.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: CHKP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CHKP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19935,642Gil Shwedhttps://www.checkpoint.com

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, data security, and management solutions.

Check Point Software Technologies Fundamentals Summary

How do Check Point Software Technologies's earnings and revenue compare to its market cap?
CHKP fundamental statistics
Market CapUS$15.80b
Earnings (TTM)US$802.10m
Revenue (TTM)US$2.20b

19.7x

P/E Ratio

7.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHKP income statement (TTM)
RevenueUS$2.20b
Cost of RevenueUS$261.60m
Gross ProfitUS$1.94b
Other ExpensesUS$1.14b
EarningsUS$802.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.26
Gross Margin88.12%
Net Profit Margin36.43%
Debt/Equity Ratio0%

How did CHKP perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


29.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CHKP ($123.29) is trading below our estimate of fair value ($173.76)

Significantly Below Fair Value: CHKP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHKP is good value based on its Price-To-Earnings Ratio (19.7x) compared to the US Software industry average (39.5x).

PE vs Market: CHKP is poor value based on its Price-To-Earnings Ratio (19.7x) compared to the US market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: CHKP is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: CHKP is overvalued based on its Price-To-Book Ratio (5x) compared to the US Software industry average (3.5x).


Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHKP's forecast earnings growth (4.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CHKP's earnings (4.4% per year) are forecast to grow slower than the US market (12.1% per year).

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

Revenue vs Market: CHKP's revenue (4.2% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: CHKP's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHKP's Return on Equity is forecast to be high in 3 years time (33.3%)


Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CHKP has high quality earnings.

Growing Profit Margin: CHKP's current net profit margins (36.4%) are lower than last year (40.8%).


Past Earnings Growth Analysis

Earnings Trend: CHKP's earnings have grown by 1.5% 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 (-5.7%) over the past year, making it difficult to compare to the Software industry average (27.1%).


Return on Equity

High ROE: CHKP's Return on Equity (25.5%) is considered high.


Financial Health

How is Check Point Software Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CHKP's short term assets ($2.1B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: CHKP's short term assets ($2.1B) exceed its long term liabilities ($929.7M).


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


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CHKP has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Gil Shwed (52 yo)

28.83yrs

Tenure

US$35,500

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 ($USD35.50K) is below average for companies of similar size in the US market ($USD13.26M).

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


Leadership Team

Experienced Management: CHKP's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: CHKP's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Check Point Software Technologies Ltd.'s 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
  • Implied Market Cap: US$15.795b
  • Shares outstanding: 128.11m
  • Website: https://www.checkpoint.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.