Check Point Gross Profit vs. Return On Equity
| CHKP Stock | USD 187.77 1.73 0.91% |
Gross Profit | First Reported 1996-03-31 | Previous Quarter 541.5 M | Current Value 555.2 M | Quarterly Volatility 166.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.99 | 0.883 |
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| Net Profit Margin | 0.5 | 0.348 |
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| Operating Profit Margin | 0.54 | 0.3723 |
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| Pretax Profit Margin | 0.59 | 0.404 |
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| Return On Assets | 0.19 | 0.1475 |
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| Return On Equity | 0.25 | 0.2979 |
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For Check Point profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Check Point to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Check Point Software utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Check Point's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Check Point Software over time as well as its relative position and ranking within its peers.
Check |
Is Systems Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Check Point. If investors know Check will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Check Point listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.046 | Earnings Share 7.3 | Revenue Per Share 22.535 | Quarterly Revenue Growth 0.065 | Return On Assets 0.1 |
The market value of Check Point Software is measured differently than its book value, which is the value of Check that is recorded on the company's balance sheet. Investors also form their own opinion of Check Point's value that differs from its market value or its book value, called intrinsic value, which is Check Point's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Check Point's market value can be influenced by many factors that don't directly affect Check Point's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Check Point's value and its price as these two are different measures arrived at by different means. Investors typically determine if Check Point is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Check Point's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Check Point Software Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Check Point's current stock value. Our valuation model uses many indicators to compare Check Point value to that of its competitors to determine the firm's financial worth. Check Point Software is rated fifth in gross profit category among its peers. It is rated fourth in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Check Point Software is about 6,827,747,989 . At this time, Check Point's Gross Profit is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Check Point by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Check Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Check Point |
| = | 2.04 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Check Point |
| = | 0.3 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Check Return On Equity Comparison
Check Point is currently under evaluation in return on equity category among its peers.
Check Point Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Check Point, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Check Point will eventually generate negative long term returns. The profitability progress is the general direction of Check Point's change in net profit over the period of time. It can combine multiple indicators of Check Point, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -39.2 M | -37.2 M | |
| Operating Income | 899.1 M | 577.6 M | |
| Income Before Tax | 975.6 M | 622.4 M | |
| Total Other Income Expense Net | 76.5 M | 80.3 M | |
| Net Income | 840.3 M | 517 M | |
| Income Tax Expense | 135.3 M | 105.4 M | |
| Net Income Applicable To Common Shares | 916.4 M | 578.7 M | |
| Net Income From Continuing Ops | 861 M | 862.4 M | |
| Interest Income | 97 M | 57.1 M | |
| Net Interest Income | 95.2 M | 56.5 M | |
| Change To Netincome | 172 M | 123.9 M | |
| Net Income Per Share | 7.19 | 7.55 | |
| Income Quality | 1.24 | 1.02 | |
| Net Income Per E B T | 0.86 | 0.92 |
Check Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Check Point. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Check Point position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Check Point's important profitability drivers and their relationship over time.
Use Check Point in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Check Point position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Check Point will appreciate offsetting losses from the drop in the long position's value.Check Point Pair Trading
Check Point Software Pair Trading Analysis
The ability to find closely correlated positions to Check Point could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Check Point when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Check Point - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Check Point Software to buy it.
The correlation of Check Point is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Check Point moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Check Point Software moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Check Point can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Check Point position
In addition to having Check Point in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Check Stock Analysis
When running Check Point's price analysis, check to measure Check Point's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Check Point is operating at the current time. Most of Check Point's value examination focuses on studying past and present price action to predict the probability of Check Point's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Check Point's price. Additionally, you may evaluate how the addition of Check Point to your portfolios can decrease your overall portfolio volatility.