Check Point Software's average rating is Hold from 20 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Check Point market sentiment investors' perception of the future value of Check. Let us look at a few aspects of Check technical analysis. The company has Profit Margin (PM) of
41.21 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of
44.64 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.45.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Check Point Software. In general, sophisticated investors focus on analyzing Check Point stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Check Point's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Check Point's intrinsic value. In addition to deriving basic predictive indicators for Check Point, many experienced traders also check how macroeconomic factors affect Check Point price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
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.
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.
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.
Closer look at Check Point Downside Variance
Check Point Software has current Downside Variance of 2.46. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2 N(ER) |
| = | 2.46 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare Check Point Downside Variance to its closest peers:
| CHKP | 2.4645981127809065 |
| BB | 4.29 |
| EVOP | 5.34 |
| DTSS | 39.21 |
| EVTC | 1.66 |
Will Check insiders exit after the decline?
The potential upside is down to 2.49 as of today. Check Point Software has relatively low volatility with skewness of -0.52 and kurtosis of 1.31. 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.
The Bottom Line
Although other companies in the software—infrastructure industry are either recovering or due for a correction, Check may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Check Point at this time. The Check Point Software risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Check Point.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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
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