How much will Check Point owe in August?

Check Point Software is scheduled to announce its earnings today. The next earnings report is expected on the 28th of October 2021. Check Point Tangible Asset Value is very stable at the moment as compared to the past year. Check Point reported last year Tangible Asset Value of 4.8 Billion. As of 26th of July 2021, Asset Turnover is likely to grow to 0.38, while Market Capitalization is likely to drop about 18.5 B. As many investors are getting excited about technology space, it is fair to recap Check Point Software as an investment option.
Published over a year ago
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Reviewed by Vlad Skutelnik

The company currently holds 30.8 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the entity is not taking enough advantage from borrowing. Check Point Software has a current ratio of 1.49, which is within standard range for the sector.
Macroaxis provides advice on Check Point Software to complement and cross-verify current analyst consensus on Check Point Software. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Wells Fargo financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Wells Fargo, including all of Wells Fargo's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Wells Fargo assets, the company is considered highly leveraged. Understanding the composition and structure of overall Wells Fargo debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Instrument Allocation

The asset allocation of funds such as Wells Fargo usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Wells Fargo International
Details

Is Wells Fargo valued reasonably by the market?

The entity reported the previous year's revenue of 2.09 B. Net Income was 850.8 M with profit before overhead, payroll, taxes, and interest of 1.84 B.

Liabilities Breakdown

390.2 M
Tax Liabilities
1.4 B
Current Liabilities
730.2 M
Long-Term Liabilities
Total Liabilities2.17 Billion
Current Liabilities1.44 Billion
Long-Term Liabilities730.17 Million
Tax Liabilities390.19 Million

Will Check Point recent decline continue?

The kurtosis is down to 3.68 as of today. 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 other entities 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. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to exit some or all of your Check Point holdings as it seems the potential growth was already fully factored into the current price. 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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Editorial Staff

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 Wells Fargo International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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