Check Story

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CHKP -- USA Stock  

USD 116.88  1.12  0.95%

Check Point Asset Turnover is very stable at the moment as compared to the past year. Check Point reported last year Asset Turnover of 0.34. As of 22nd of July 2020, Current Ratio is likely to grow to 1.59, while Free Cash Flow is likely to drop about 1.1 B. In spite of very healthy forward-looking signals, Check Point is not utilizing all of its potentials. The current stock price disarray, may contribute to a short-term swings for the insiders. Will insiders continue to hold, or should we expect a sell-off?
Published over two months ago
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Does Check Point has healthy forward looking signals based on the recent roll up?
Check Point is FAIRLY VALUED at 122.33 per share with modest projections ahead. Check Point appears to be very steady, given 1 month investment horizon. Check Point Software secures Sharpe Ratio (or Efficiency) of 0.18, which signifies that the company had 0.18% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Check Point Software, which you can use to evaluate future volatility of the firm. Please makes use of Check Point Software risk adjusted performance of 0.2713, and mean deviation of 1.32 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Check Point income statement, its balance sheet, and the statement of cash flows. Potential Check Point investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Check Point investors may use each financial statement separately, they are all related. The changes in Check Point's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Check Point's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Check Point fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Check Point performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Check Point shares is the value that is considered the true value of the share. If the intrinsic value Check is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Check Point. Please read more on our fundamental analysis page.

What is Check Asset Breakdown?

Check Point Software reports assets on its Balance Sheet. It represents the amount of Check resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Check volatility, please check the breakdown of all its fundamentals

Are Check Point Earnings Expected to grow?

The future earnings power of Check Point involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Check Point factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Check Point stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Check expected earnings.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Check Point, but it might be worth checking our own buy vs. sell analysis

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 Gross Profit in more details.

A Deeper Perspective On Check Point

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Check Point is not uncomon. There are few distinct groups of Check Point stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Check is distributed among investors.

Ownership Allocation

Check Point Software retains a total of 140.2 Million outstanding shares. The majority of Check Point Software outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Check Point Software to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Check Point. Please pay attention to any change in the institutional holdings of Check Point Software as this could imply that something significant has changed or about to change at the company. Also note that nearly five million six hundred eight thousand invesors are currently shorting Check Point expressing very little confidence in its future performance.

Insiders
21.99%
Institutions
81.68%
Retail Investors-3.67
Insiders21.99
Institutions81.68
 2017 2018 2019 2020 (projected)
Cost of Revenue213 M201.4 M215.4 M218.22 M
Consolidated Income802.9 M821.3 M825.7 M810.75 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Check Point has an asset utilization ratio of 140.99 percent. This suggests that the company is making $1.41 for each dollar of assets. An increasing asset utilization means that Check Point Software is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
2.2 B
Assets Non Current
3.6 B
Current Assets2.16 Billion31.4
Assets Non Current3.64 Billion52.93
Goodwill1.02 Billion14.82
Tax Assets58.62 Million0.85

Check Point has a small chance to finish above $127 in 2 months

Recent market risk adjusted performance is at 1.59. Check Point Software has relatively low volatility with skewness of -0.53 and kurtosis of 0.48. However, we advise all investors to independently investigate Check Point Software to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Check Point

Although other companies in the software?infrastructure industry are either recovering or due for a correction, Check Point may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 22nd of July 2020, our analysis shows that Check Point barely shadows the market. The firm is fairly valued and projects very small probability of distress for the next 2 years. Our final 30 days buy-or-sell advice on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Check Point Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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