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Check Point Software Technologies Ltd. (CHKP) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Check Point Software Technologies Ltd.

CHKPMarket cap $13BPrice $130.3

Country🇮🇱Israel

SectorTechnology

IndustrySoftware

Builds cybersecurity software that protects networks, cloud systems, and endpoints for over 100,000 organizations worldwide. Invented the modern firewall in 1993, and still runs one of the most profitable margins in enterprise software today.

In Bastion Portfolios?

52W Return-32%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+5%5

Revenue Forecast

Rev CAGR (1y)+3%3

Rev CAGR (3y)+4%4

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+41%9

EPS Growth Y+2+3%5

EPS Growth Y+3+5%5

Quality

100

Margins

EBIT Margin29%9

Net Income Margin38%10

Free Cash Flow Margin40%10

Debt

Net Debt/EBITDA-2.610

Efficiency

ROE38%10

ROA16%10

Earnings Stability1010

GEAR+VERY STRONG93

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)127

P/E Ratio (Forward 3y)117

P/BV4.93

EV Multiples

EV/EBITDA Fwd88

EV/EBIT Fwd89

Yield

Free Cash Flow Yield8.3%8

Dividend Yieldna–

Momentum

Short term

1 month return-2%7

3 month return-5%5

YTD return-30%1

Mid term

Price vs 52wHigh62%2

1 year return-35%1

Long term

3 year return-5%3

5 year return+12%4

Risk Shield

Price Risk

Beta0.48

Volatility41%4

Free Cash Flow

Free Cash Flow Margin40%10

Free Cash Flow Yield8.3%8

Quality

ROCE17%8

Earnings Stability1010

Net Debt/EBITDA-2.610

02Growth

Is it actually growing, and how fast?

CHKPCheck Point Software Technologies

Revenue FY25$2.6B

GROWTH RATING↗

AVERAGE41 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+3%3

Revenue, next 3Y, CAGR+4%4

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+41%9

EPS growth, FY27E+3%5

EPS growth, FY28E+5%5

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 4%/yr).

WATCH

A mid-pack grower, ahead of 41% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 5%/yr over the last 3 years and is set to keep growing around 4%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

CHKPCheck Point Software Technologies

Total return Current60.1%

Price return Current60.1%

MOMENTUM RATING↗

WEAK20 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-2%7

3-month return-5%5

YTD return-30%1

MID & LONG-TERM▾SCORE

% of 52-week high62%2

1-year return-35%1

3-year return-5%3

5-year return+12%4

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (-2%).

WATCH

Returns sit at the market level over three months (-5%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-4.9% over three years and +12% over five), behind 60% of the market.

It's down 35% over the past year, now 38% below its 52-week high. That is lagging the market.

The stock is underperforming so far this year (-30%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Check Point. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

CHKPCheck Point Software Technologies

Revenue FY25$2.6B

GROWTH RATING↗

AVERAGE41 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+3%3

Revenue, next 3Y, CAGR+4%4

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+41%9

EPS growth, FY27E+3%5

EPS growth, FY28E+5%5

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 5%/yr vs revenue 4%/yr).

WATCH

A mid-pack grower, ahead of 41% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 5%/yr over the last 3 years and is set to keep growing around 4%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

CHKPCheck Point Software Technologies

Total return Current60.1%

Price return Current60.1%

MOMENTUM RATING↗

WEAK20 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-2%7

3-month return-5%5

YTD return-30%1

MID & LONG-TERM▾SCORE

% of 52-week high62%2

1-year return-35%1

3-year return-5%3

5-year return+12%4

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (-2%).

WATCH

Returns sit at the market level over three months (-5%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-4.9% over three years and +12% over five), behind 60% of the market.

It's down 35% over the past year, now 38% below its 52-week high. That is lagging the market.

The stock is underperforming so far this year (-30%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Check Point. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community