CHKP

Check Point Software Technologies

TMT


Presented:05/27/2022
Price:$126.18
Cap:$16.17B
Current Price:$207.83
Cap:$22.86B

Presented

Date05/27/2022
Price$126.18
Market Cap$16.17B
Ent Value$16.20B
P/E Ratio20.63x
Book Value$23.69
Div Yield0%
Shares O/S128.11M
Ave Daily Vol1,392,291
Short Int2.95%

Current

Price$207.83
Market Cap$22.86B
Check Point Software Technologies Ltd. is engaged in the development and marketing of software and hardware solutions for information technology security. Its products include Quantum, CloudGuard, Harmony, and Infinity-Vision. The company was founded by Gil Shwed, Marius Nacht, and Shlomo Kramer in July 1993 and is headquartered in Tel Aviv, Israel.

Publicly traded companies mentioned herein: Check Point Software Technologies Ltd (CHKP), Microsoft Corp (MSFT), Palo Alto Networks Inc (PANW)

Highlights 

The presenter is long shares of Check Point Software Technologies Ltd (CHKP), a cloud software and IT security provider that has historically been used as a hedge for the sector. The common perception of CHKP as a secular share donor to Palo Alto is beginning to unravel as the company rolls out a next generation firewall and cloud security suite that are gaining traction due to aggressive marketing. Given that the Street models CHKP’s revenue growth this year at under 7%, the company is well positioned for a beat and raise from pricing alone as it pushed a 7% price increase at the start of this year, and the presenter is confident that IT security products undergo relatively low churn during recessions. For these reasons, he views the stock as an attractive investment as CHKP outpaces consensus revenue and FCF through 2023.

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Idea Discussion

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