Check Point Software Technologies Ltd. (CHKP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Spotify Technology SA

XP, Inc.

TKO Group Holdings, Inc.

Alphabet, Inc.

Meta Platforms, Inc.

Check Point Software Technologies Ltd.

CoStar Group, Inc.

Pinterest, Inc.

VeriSign, Inc.

Gartner, Inc.

Match Group, Inc.

Why is Check Point Software Technologies Ltd. ?

High Management Efficiency with a high ROE of 28.08%

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -1.67% of over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 1,296.28 MM
ROCE(HY) Highest at 38.02%
RAW MATERIAL COST(Y) Fallen by -0.02% (YoY)

With ROE of 36.67%, it has a attractive valuation with a 11.15 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -44.06%, its profits have risen by 25% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 82.78%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.43% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -44.06% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Check Point Software Technologies Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Check Point Software Technologies Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Check Point Software Technologies Ltd.

-44.06%

-0.47

39.50%

S&P 500

22.99%

1.78

12.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.71%

EBIT Growth (5y)

-1.67%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

0.86

Tax Ratio

12.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

82.78%

ROCE (avg)

68.92%

ROE (avg)

28.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.15

EV to EBIT

37.41

EV to EBITDA

33.65

EV to Capital Employed

16.90

EV to Sales

11.41

PEG Ratio

1.13

Dividend Yield

ROCE (Latest)

45.19%

ROE (Latest)

36.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,296.28 MM

ROCE(HY)

Highest at 38.02%

RAW MATERIAL COST(Y)

Fallen by -0.02% (YoY

CASH AND EQV(HY)

Highest at USD 5,783.7 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.81 times

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -28.26 %

OPERATING PROFIT(Q)

Lowest at USD 204.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 30.61 %

Here's what is working for Check Point Software Technologies Ltd.

Operating Cash Flow

Highest at USD 1,296.28 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 5,783.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.02% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Check Point Software Technologies Ltd.

Operating Profit

Lowest at USD 204.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 30.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -28.26 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at USD 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income