Check Point Operating Margin vs. Net Income
| CHKP Stock | USD 171.48 7.01 4.26% |
Check Point Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.99 | 1.01 |
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| Net Profit Margin | 0.5 | 0.38 |
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| Operating Profit Margin | 0.53 | 0.39 |
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| Pretax Profit Margin | 0.58 | 0.44 |
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| Return On Assets | 0.19 | 0.17 |
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| Return On Equity | 0.26 | 0.35 |
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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 out Trending Equities. Can Systems Software industry sustain growth momentum? Does Check have expansion opportunities? Factors like these will boost the valuation of Check Point. Projected growth potential of Check fundamentally drives upward valuation adjustments. Determining accurate worth demands scrutiny of both present operating results and projected expansion capacity. Evaluating Check Point demands reviewing these metrics collectively while recognizing certain factors exert disproportionate influence.
Quarterly Earnings Growth 0.224 | Earnings Share 9.62 | Revenue Per Share | Quarterly Revenue Growth 0.059 | Return On Assets |
Investors evaluate Check Point Software using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Check Point's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Market participants employ diverse analytical approaches to determine fair value and identify buying opportunities when prices dip below calculated worth. External factors like market trends, sector rotation, and investor psychology can cause Check Point's market price to deviate significantly from intrinsic value.
It's important to distinguish between Check Point's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Check Point should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Check Point's market price signifies the transaction level at which participants voluntarily complete trades.
Check Point Software Net Income vs. Operating Margin 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 second in operating margin category among its peers. It is number one stock in net income category among its peers making up about 2,704,509,114 of Net Income per Operating Margin. At this time, Check Point's Operating Profit Margin 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 Net Income vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Check Point |
| = | 0.31 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Check Point |
| = | 845.7 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Check Net Income Comparison
Check Point is currently under evaluation in net income 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 | -9.3 M | -8.8 M | |
| Operating Income | 1 B | 590.9 M | |
| Income Before Tax | 1.1 B | 637.8 M | |
| Total Other Income Expense Net | 110.5 M | 116 M | |
| Net Income | 972.6 M | 531.3 M | |
| Income Tax Expense | 145.4 M | 106.5 M | |
| Net Income Applicable To Common Shares | 916.4 M | 578.7 M | |
| Net Income From Continuing Ops | 972.6 M | 868.6 M | |
| Interest Income | 107.6 M | 81 M | |
| Net Interest Income | 105.6 M | 80.3 M | |
| Change To Netincome | 172 M | 123.9 M | |
| Net Income Per Share | 6.88 | 7.23 | |
| Income Quality | 1.12 | 1.04 | |
| Net Income Per E B T | 1.00 | 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.
Check Point Earnings per Share Projection vs Actual
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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Processed Foods
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Processed Foods Theme or any other thematic opportunities.
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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.