Check Point Software Technologies Ltd.
Find Ratings ReportsCHECK POINT SOFTWARE TECHN's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. CHECK POINT SOFTWARE TECHN has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.69% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 663.5 | 638.5 |
EBITDA ($mil) | 274.4 | 264.9 |
EBIT ($mil) | 255.2 | 255.4 |
Net Income ($mil) | 249.2 | 269.9 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1530.0 | 1637.6 |
Total Assets ($mil) | 5695.5 | 5724.8 |
Total Debt ($mil) | 0.0 | 0.0 |
Equity ($mil) | 2821.0 | 2929.3 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 89.45 | 88.29 |
EBITDA Margin | 41.35 | 41.48 |
Operating Margin | 38.46 | 40.0 |
Sales Turnover | 0.42 | 0.41 |
Return on Assets | 14.75 | 13.92 |
Return on Equity | 29.79 | 27.2 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.18 | 1.27 |
Debt/Capital | 0.0 | 0.0 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 120.76 | 120.76 |
Div / share | 0.0 | 0.0 |
EPS | 2.15 | 2.2 |
Book value / share | 23.36 | 24.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 766233.0 | 847959.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 47.17 for the Publishing Industries subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 7.12 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 11.80. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, CHECK POINT SOFTWARE TECHN proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CHKP 23.35 | Peers 47.17 | CHKP 18.27 | Peers 33.15 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CHKP is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CHKP is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CHKP 16.61 | Peers 32.16 | CHKP 0.86 | Peers 1.66 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CHKP is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CHKP trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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CHKP 7.12 | Peers 11.80 | CHKP 12.48 | Peers 148.13 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CHKP is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CHKP is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CHKP 8.32 | Peers 12.32 | CHKP 3.63 | Peers 12.66 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CHKP is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CHKP significantly trails its peers on the basis of sales growth. |
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