Check Point Software Technologies
Market Cap
US$18.1b
Last Updated
2021/01/22 23:25 UTC
Data Sources
Company Financials +
Executive Summary
Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. More Details
Rewards
PE ratio (21.4x) is below the Software industry average (56.6x)
Risk Analysis
Earnings are forecast to decline by an average of 0.7% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with solid 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
Stable Share Price: CHKP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CHKP's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.4%
CHKP
3.3%
US Software
1.4%
US Market
1 Year Return
12.1%
CHKP
43.5%
US Software
22.6%
US Market
Return vs Industry: CHKP underperformed the US Software industry which returned 44.5% over the past year.
Return vs Market: CHKP underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| CHKP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | 3.3% | 1.4% |
| 30 Day | -4.1% | -1.9% | 4.9% |
| 90 Day | 7.4% | 7.3% | 14.6% |
| 1 Year | 12.1%12.1% | 44.4%43.5% | 25.4%22.6% |
| 3 Year | 23.7%23.7% | 130.6%123.2% | 46.8%37.0% |
| 5 Year | 64.2%64.2% | 282.4%261.8% | 132.0%106.1% |
Long-Term 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
1 week ago | Simply Wall St
Are Check Point Software Technologies's (NASDAQ:CHKP) Statutory Earnings A Good Reflection Of Its Earnings Potential?Valuation
Is Check Point Software Technologies undervalued compared to its fair value and its price relative to the market?
21.82x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CHKP ($127.12) is trading above our estimate of fair value ($119.83)
Significantly Below Fair Value: 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 (21.4x) compared to the US Software industry average (56.6x).
PE vs Market: CHKP is poor value based on its PE Ratio (21.4x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: CHKP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CHKP is good value based on its PB Ratio (5.3x) compared to the US Software industry average (9.7x).
Next Steps
Future Growth
How is Check Point Software Technologies forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
-0.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHKP's earnings are forecast to decline over the next 3 years (-0.7% per year).
Earnings vs Market: CHKP's earnings are forecast to decline over the next 3 years (-0.7% per year).
High Growth Earnings: CHKP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CHKP's revenue (2.7% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: CHKP's revenue (2.7% 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 (30.3%)
Next Steps
Past Performance
How has Check Point Software Technologies performed over the past 5 years?
4.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHKP has high quality earnings.
Growing Profit Margin: CHKP's current net profit margins (41.5%) are higher than last year (40.1%).
Past Earnings Growth Analysis
Earnings Trend: CHKP's earnings have grown by 4.4% per year over the past 5 years.
Accelerating Growth: CHKP's earnings growth over the past year (7.1%) exceeds its 5-year average (4.4% per year).
Earnings vs Industry: CHKP earnings growth over the past year (7.1%) underperformed the Software industry 14.3%.
Return on Equity
High ROE: CHKP's Return on Equity (25.3%) is considered high.
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) exceed its short term liabilities ($1.3B).
Long Term Liabilities: CHKP's short term assets ($2.0B) exceed its long term liabilities ($817.0M).
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
Next Steps
Dividend
What is Check Point Software Technologies's current dividend yield, its reliability and sustainability?
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.
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
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Gil Shwed (51 yo)
27.5yrs
Tenure
US$29,520
Compensation
Mr. Gil Shwed is a Co-founder of Check Point Software Technologies Ltd. Mr. Shwed has been Chief Executive Officer of Check Point Software Technologies Ltd. since July 1993 and served as its Executive Chai...
CEO Compensation Analysis
Compensation vs Market: Gil's total compensation ($USD29.52K) is below average for companies of similar size in the US market ($USD10.55M).
Compensation vs Earnings: Gil's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 27.5yrs | US$29.52k | 17.81% $ 3.2b | |
| Chief Financial & Operations Officer | 13yrs | US$934.75k | no data | |
| Head of Human Resources | no data | US$432.53k | no data | |
| Chief Customer Officer | 2.5yrs | US$709.30k | no data | |
| Head of Global Investor Relations | no data | no data | no data | |
| General Counsel | no data | no data | no data | |
| Chief Marketing Officer | 2.25yrs | no data | no data | |
| President of Americas Sales | 1.5yrs | no data | no data | |
| Head of Telecom & Cloud Sales | 1.5yrs | no data | no data | |
| Managing Director of India & SAARC Region | 1.33yrs | no data | no data |
2.3yrs
Average Tenure
51yo
Average Age
Experienced Management: CHKP's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 27.5yrs | US$29.52k | 17.81% $ 3.2b | |
| Independent Director | 26yrs | no data | no data | |
| Chairman of the Board | 0.42yr | no data | no data | |
| Director | 1yr | no data | no data | |
| Independent Director | 15yrs | no data | no data | |
| Lead Independent Director | 0.58yr | no data | no data | |
| Independent Director | 21yrs | no data | no data | |
| Independent Director | 15yrs | no data | no data | |
| Independent Director | 2.08yrs | no data | no data | |
| Director | no data | no data | no data |
15.0yrs
Average Tenure
61yo
Average Age
Experienced Board: CHKP's board of directors are seasoned and experienced ( 15 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 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$18.142b
- Shares outstanding: 140.20m
- Website: https://www.checkpoint.com
Number of Employees
Location
- Check Point Software Technologies Ltd.
- 5 Shlomo Kaplan Street
- Tel Aviv
- 6789159
- Israel
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CHKP | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Shares | US | USD | Jun 1996 |
| CPW | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 1996 |
| CHKP N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jun 1996 |
| CHKP | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jun 1996 |
| C1HK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 23:25 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.