NasdaqGS:CHKP

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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. More Details


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

CHKP

-4.8%

US Software

-4.1%

US Market


1 Year Return

3.3%

CHKP

46.8%

US Software

12.0%

US Market

Return vs Industry: CHKP underperformed the US Software industry which returned 46.8% over the past year.

Return vs Market: CHKP underperformed the US Market which returned 12% over the past year.


Shareholder returns

CHKPIndustryMarket
7 Day-3.8%-4.8%-4.1%
30 Day-3.7%-1.2%-0.2%
90 Day-7.6%4.9%2.8%
1 Year3.3%3.3%47.9%46.8%14.6%12.0%
3 Year9.7%9.7%125.9%118.4%35.8%26.8%
5 Year38.5%38.5%225.1%206.2%75.2%55.6%

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?

19.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHKP ($115.85) is trading above our estimate of fair value ($89.04)

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 (19.5x) compared to the US Software industry average (60.5x).

PE vs Market: CHKP is poor value based on its PE Ratio (19.5x) compared to the US market (18.1x).


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 (4.8x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

How is Check Point Software Technologies forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

-1.6%

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 (-1.6% per year).

Earnings vs Market: CHKP's earnings are forecast to decline over the next 3 years (-1.6% 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% 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 (29.9%)


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 15.7%.


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?

2.0yrs

Average management tenure


CEO

Gil Shwed (51 yo)

27.25yrs

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 ($USD29.52K) is below average for companies of similar size in the US market ($USD11.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gil Shwed
Founder27.25yrsUS$29.52k17.81%
$ 2.9b
Tal Payne
Chief Financial & Operations Officer12.75yrsUS$934.75kno data
Miryam Steinitz
Head of Human Resourcesno dataUS$432.53kno data
Dan Yerushalmi
Chief Customer Officer2.25yrsUS$709.30kno data
Kip Meintzer
Head of Global Investor Relationsno datano datano data
John Slavitt
General Counselno datano datano data
Peter Alexander
Chief Marketing Officer2yrsno datano data
Chris Scanlan
President of Americas Sales1.25yrsno datano data
Erez Yarkoni
Head of Telecom & Cloud Sales1.25yrsno datano data
Sundar Balasubramanian
Managing Director of India & SAARC Region1.08yrsno datano data

2.0yrs

Average Tenure

51yo

Average Age

Experienced Management: CHKP's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gil Shwed
Founder27.25yrsUS$29.52k17.81%
$ 2.9b
Ray Rothrock
Independent Director25.75yrsno datano data
Irwin Federman
Independent Director25.75yrsno datano data
Jerry Ungerman
Chairman of the Board0.17yrno datano data
Yoav Chelouche
Independent Director14.75yrsno datano data
Guy Gecht
Lead Independent Director0.33yrno datano data
Tal Shavit
Independent Director20.75yrsno datano data
Dan Propper
Independent Director14.75yrsno datano data
Shai Weiss
Independent Director1.83yrsno datano data

14.8yrs

Average Tenure

64yo

Average Age

Experienced Board: CHKP's board of directors are seasoned and experienced ( 14.8 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 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$16.242b
  • 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

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
C1HK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:51
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.