| 2008 | 2009 | 2018 | 2019 (projected) | Check Point Book Value per Share | 23.72 | 0.83 | 0.95 | 6.95 | Check Point Asset Turnover | 0.34 | 0.72 | 0.65 | 0.50 |
Check Point is down -1.44 percent despite market surge
 | By Ellen Johnson | Macroaxis Story |
This prospective will recap Check Point. I will focus on the cause of why it is still reasonable for the corporate body to generate above average margins and lots of cash flow. The company chance of financial distress is now about 36.0 percent. What is Check Point Target Price Odds to finish over Current Price? Contingent on normal probability distribution, the odds of Check Point to move above current price in 30 days from now is about 67.74%. The Check Point Software Technologies Ltd probability density function shows the probability of Check Point Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, the stock has beta coefficient of 1.0448 . This suggests Check Point Software Technologies Ltd market returns are highly reactive to returns on the market. As the market goes up or down, Check Point is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Check Point Software is significantly underperforming S&P 500.
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Reviewed by Gabriel Shpitalnik
The entity has beta of 0.72. As returns on market increase, Check Point returns are expected to increase less than the market. However during bear market, the loss on holding Check Point will be expected to be smaller as well. This firm dividends can provide a clue to current valuation of the stock. Check Point is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Now, lets check Check Point Working Capital. Check Point Software Technologies Ltd has Working Capital of 643.32M. This is 93.42% lower than that of the Technology sector, and 8.78% higher than that of Software - Application industry, The Working Capital for all stocks is 56.48% higher than the firm.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Check Point. Your research has to be compared to or analyzed against Check Point's peers to derive any actionable benefits. When done correctly, Check Point's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Check Point Software.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Check Point Software. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Check Point
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Check Point's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Check Point's Liquidity
Check Point financial leverage refers to using borrowed capital as a funding source to finance Check Point Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Check Point financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Check Point's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Check Point's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Check Point's total debt and its cash.
Check Point Gross Profit
Check Point Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Check Point previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Check Point Gross Profit growth over the last 10 years. Please check Check Point's gross profit and other fundamental indicators for more details.
A Deeper Perspective On Check Point
Check Point Software reported previous year revenue of 1.94B. Net Income was 814.1M with profit before overhead, payroll, taxes, and interest of 1.72B. The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 113.76 on 535975.000 in volume. The company directors and management did not add much value to Check Point investors in May. However, diversifying your holdings with Check Point Software Technologies Ltd or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2216. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Check Point maintains price to book of 4.75x. Check Point is trading at 113.95. This is 1.44 percent decrease. Opened at 113.95. Check Point Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 4 years. Further, Check Point Net Cash Flow Business Acquisitions and Disposals is increasing over the last 4 years.
To conclude, we believe that at this point Check Point is undervalued with below average chance of bankruptcy within the next 2 years. Our ongoing buy vs. sell advice on the corporate body is Strong Hold.
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