By analyzing existing forward-looking signals between Check Point and Euronet, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Euronet with a short position in Check Point. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
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 146.6 percent. This suggests that the company is making $1.47 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Check or Crowdstrike is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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.
Correlation Between Check and Crowdstrike Holdings
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Check Point together with similar or unrelated positions with a negative correlation. For example, you can also add Crowdstrike Holdings to your portfolio. If Crowdstrike Holdings is not perfectly correlated to Check Point it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Check Point, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Check Point and Crowdstrike Holdings in your portfolio? Please note if you are using this as a pair-trade strategy between Check Point and Crowdstrike Holdings, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between CHKP and CRWD for more information.
A Deeper Perspective On Check Point
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Check Point revenue. Based on the latest financial disclosure, Check Point Software reported 2.09
B of revenue. This is 48.72% lower than that of the Technology sector and significantly higher than that of the
Software—Infrastructure industry. The revenue for all United States stocks is 77.85% higher than that of the entity. As for Euronet Worldwide we see revenue of 2.55
B, which is much higher than that of the Software—Infrastructure
| Check | 2.09 Billion |
| Sector | 0.0 |
| Euronet | 2.55 Billion |
Check technical analysis suggests possible bounce back
Recent Jensen Alpha is up to 0.05. Price may decline again. Check Point Software has relatively low volatility with skewness of 0.89 and kurtosis of 3.68. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Check Point's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Check Point's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Check Point
Although many other companies under the software—infrastructure industry are still a bit expensive, Check Point may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current Check valuation and our trade advice on Check Point is due to the recent market swings and your selection of investing horizon. 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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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Check Point Software. Please refer to our
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