company background image
CHKP

Check Point Software TechnologiesNasdaqGS:CHKP Stock Report

Market Cap

US$14.5b

7D

-1.0%

1Y

-9.1%

Updated

03 Dec, 2021

Data

Company Financials +
CHKP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
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 35% below our estimate of its fair value

Risk Analysis

No risks detected for CHKP from our risk checks.

Check Point Software Technologies Competitors

Microsoft

NasdaqGS:MSFT

US$2.4t

Palo Alto Networks

NasdaqGS:PANW

US$51.4b

VMware

NYSE:VMW

US$49.9b

Fortinet

NasdaqGS:FTNT

US$49.5b

Price History & Performance

Summary of all time highs, changes and price drops for Check Point Software Technologies
Historical stock prices
Current Share PriceUS$109.26
52 Week HighUS$139.26
52 Week LowUS$107.85
Beta0.73
1 Month Change-6.16%
3 Month Change-12.14%
1 Year Change-9.12%
3 Year Change2.80%
5 Year Change28.21%
Change since IPO2,631.50%

Recent News & Updates

Nov 21
Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) Intrinsic Value Is Potentially 45% Above Its Share Price

Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) Intrinsic Value Is Potentially 45% Above Its Share Price

Does the November share price for Check Point Software Technologies Ltd. ( NASDAQ:CHKP ) reflect what it's really...

Oct 26
Returns On Capital At Check Point Software Technologies (NASDAQ:CHKP) Have Hit The Brakes

Returns On Capital At Check Point Software Technologies (NASDAQ:CHKP) Have Hit The Brakes

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Oct 08

Check Point: Infinity Could Justify A Spike From $101-$119 To $245

Check Point Software Technologies Ltd. offers three different options to secure the network, the cloud, and the client’s users. I am assuming that the company’s R81 product, which was released in 2020, should successfully find significant demand. I expect that the system will be successful because it offers not only prevention and security management but also autonomous threat prevention and AI-driven security policy systems. I expect sales growth of 7.5% from 2021 to 2025, an EBITDA margin of 55%, and a UFCF margin close to 45%. Notice that 2025 UFCF may stand close to $1.305 billion. I believe that the new AI-driven security policy systems against zero-day attacks would imply a total valuation that could go from $139 to $245.

Shareholder Returns

CHKPUS SoftwareUS Market
7D-1.0%-5.0%-2.7%
1Y-9.1%28.6%16.6%

Return vs Industry: CHKP underperformed the US Software industry which returned 33.6% over the past year.

Return vs Market: CHKP underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is CHKP's price volatile compared to industry and market?
CHKP volatility
CHKP Average Weekly Movement2.5%
Software Industry Average Movement7.5%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

Volatility Over Time: CHKP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19935,198Gil 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$14.51b
Earnings (TTM)US$826.70m
Revenue (TTM)US$2.13b

17.6x

P/E Ratio

6.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHKP income statement (TTM)
RevenueUS$2.13b
Cost of RevenueUS$238.00m
Gross ProfitUS$1.89b
ExpensesUS$1.07b
EarningsUS$826.70m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.23
Gross Margin88.83%
Net Profit Margin38.78%
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?

35.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHKP ($109.26) is trading below our estimate of fair value ($168.05)

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 PE Ratio (17.6x) compared to the US Software industry average (42.9x).

PE vs Market: CHKP is poor value based on its PE Ratio (17.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: CHKP is poor value based on its PEG Ratio (10.5x)


Price to Book Ratio

PB vs Industry: CHKP is good value based on its PB Ratio (4.4x) compared to the US Software industry average (6x).


Future Growth

How is Check Point Software Technologies forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHKP's forecast earnings growth (1.7% per year) is below the savings rate (2%).

Earnings vs Market: CHKP's earnings (1.7% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: CHKP's revenue (3.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CHKP's revenue (3.4% 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 (29.6%)


Past Performance

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

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHKP has high quality earnings.

Growing Profit Margin: CHKP's current net profit margins (38.8%) are lower than last year (41.5%).


Past Earnings Growth Analysis

Earnings Trend: CHKP's earnings have grown by 2.8% 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 (-2.5%) over the past year, making it difficult to compare to the Software industry average (20.5%).


Return on Equity

High ROE: CHKP's Return on Equity (25.1%) is considered high.


Financial Health

How is Check Point Software Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: CHKP's short term assets ($2.1B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: CHKP's short term assets ($2.1B) exceed its long term liabilities ($899.0M).


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


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?

2.4yrs

Average management tenure


CEO

Gil Shwed (52 yo)

28.42yrs

Tenure

US$37,900

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 ($USD37.90K) is below average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Gil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: CHKP's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: CHKP's board of directors are considered experienced (9.5 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
  • Market Cap: US$14.510b
  • Shares outstanding: 132.80m
  • 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 Analysis2021/12/03 23:51
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.