Check Point Software Stock Analysis, Valuation (NASDAQ:CHKP)

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$118.12 $1.54 (1.29%) CHKP stock closing price Sep 19, 2018 (Closing)

Watch the robo advisor video of Check Point Software stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for CHKP stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Check Point Software Technologies Ltd. Stock Rating 4/5

Amigobulls CHKP stock analysis relies on business fundamentals such as Check Point Software revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Check Point Software valuation forms a crucial part of our stock analysis. Our Check Point Software stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy CHKP stock?

  • The TTM operating margin was good at 49.39 for Check Point Software.
  • Net margins stood at a healthy 43.4% (average) for Check Point Software in the Trailing Twelve Months.
  • The Check Point Software stock currently trades at a price to earnings ratio of 22.5, compared to the sector average of 25.6. We rate this as a positive.
  • Check Point Software's return on invested capital of 32 is good.
  • The LTM ROE of 22.7 for Check Point Software is attractive.
  • The company has a healthy free cash flow margin of 44.5.

Should you sell CHKP stock?

  • Check Point Software salesgrew by a marginal 2% year over year in 2018-06.
  • The company is trading at a price to sales multiple of 9.5, which is higher in comparison to the Computer and Technology sector average of 2.9, making CHKP stock expensive.

Comments on this video and Check Point Software stock

Amigobulls Check Point Software stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of CHKP stock and helps investors in making good buy and sell decision.

Check Point Software revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of CHKP technical analysis to check whether the fundamental story is reflected in the market sentiment.