A Business at a Glance
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CHECK POINT SOFTWARE TECHNOLOGIES LTD
CHKP
$14.6B
Mkt Cap
$132.75
+5.35%
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a current P/E ratio of 17.8, compared to its historical median P/E of 20.6. The stock is currently considered Cheap based on its historical valuation range.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a 5-year average return on invested capital (ROIC) of 26.2%. This indicates strong capital allocation and a potential competitive advantage.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a market capitalization of $14.6B. It is classified as a large-cap stock.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 9.60%.
Based on historical P/E analysis, CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) appears cheap. The current P/E of 17.8 is 14% below its historical median of 20.6. The estimated fair value CAGR (P/E method) is 5.5%.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) operates in the Services-Prepackaged Software industry, within the Technology sector.
ITEM 4. INFORMATION ON CHECK POINT Check Point History and Development Founded over 30 years ago by Gil Shwed, Check Point has continued its mission to secure the digital world for everyone, everywhere. From Firewall-1, the first stateful firewall to dynamic security innovations and to the emergence of the AI-powered, cloud-delivered Check Point Infinity Platform, Check Point has demonstrated its ability to defend and prevent what is coming. Check Point delivers collaborative security across an organization’s security architecture of the Network, Cloud, and the Workspace. Through its Infinity Global Services product, Check Point provides comprehensive technical services to fulfill the cyber security needs of its global customers. Business Overview The 3 Cs to Provide the Effective Threat Prevention and Security The Check Point Infinity Platform provides a comprehensive, consolidated, and collaborative security platform to provide threat prevention and security across all attack vectors.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.7B | 2.7B | 2.6B | 2.4B | 2.3B | 2.2B |
| Net Income | 1.1B | 1.1B | 846M | 840M | 797M | 816M |
| EPS | $9.62 | $9.62 | $7.46 | $7.10 | $6.31 | $6.08 |
| Free Cash Flow | 1.2B | 1.2B | 1.0B | 1.0B | 1.1B | 1.2B |
| ROIC | 30.1% | 29.3% | 27.2% | 26.9% | 24.5% | 23.2% |
| Gross Margin | 52.9% | 52.9% | 54.8% | 58.3% | 58.9% | 61.5% |
| Debt/Equity | 0.70 | 0.70 | 0.01 | 0.01 | 0.95 | 0.81 |
| Dividends/Share | $0.00 | $0.00 | - | - | - | - |
| Operating Income | 831M | 831M | 876M | 899M | 884M | 908M |
| Operating Margin | 30.5% | 30.5% | 34.2% | 37.2% | 38.0% | 41.9% |
| ROE | 36.7% | 37.3% | 30.1% | 29.2% | 25.8% | 24.3% |
| Shares Outstanding | 110M | 110M | 113M | 118M | 126M | 134M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.5B | 1.6B | 1.7B | 1.9B | 1.9B | 2.0B | 2.1B | 2.2B | 2.3B | 2.4B | 2.6B | 2.7B | 2.7B |
| Gross Margin | 70.3% | 69.1% | 67.4% | 68.4% | 64.2% | 62.3% | 62.3% | 61.5% | 58.9% | 58.3% | 54.8% | 52.9% | 52.9% |
| R&D | 133M | 149M | 178M | 192M | 212M | 239M | 253M | 293M | 350M | 369M | 395M | 457M | 457M |
| SG&A | 79M | 92M | 88M | 92M | 89M | 106M | 112M | 111M | 116M | 117M | 112M | 129M | 129M |
| EBIT | 801M | 840M | 852M | 924M | 914M | 882M | 904M | 908M | 884M | 899M | 876M | 831M | 831M |
| Op. Margin | 53.6% | 51.5% | 48.9% | 49.8% | 47.7% | 44.2% | 43.8% | 41.9% | 38.0% | 37.2% | 34.2% | 30.5% | 30.5% |
| Net Income | 660M | 686M | 725M | 803M | 821M | 826M | 847M | 816M | 797M | 840M | 846M | 1.1B | 1.1B |
| Net Margin | 44.1% | 42.1% | 41.6% | 43.3% | 42.9% | 41.4% | 41.0% | 37.6% | 34.2% | 34.8% | 33.0% | 38.8% | 38.8% |
| Non-Recurring | 7.0M | 7.2M | 11M | 10.0M | 9.5M | 700K | 4.5M | 1.4M | 0 | -6.7M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 20.2% | 19.7% | 21.1% | 23.7% | 22.8% | 53.9% | 22.4% | 23.2% | 24.5% | 26.9% | 27.2% | 29.3% | 30.1% |
| ROE | 18.2% | 19.1% | 20.6% | 22.6% | 22.3% | 22.5% | 24.1% | 24.3% | 25.8% | 29.2% | 30.1% | 37.3% | 36.7% |
| ROA | 13.4% | 13.7% | 14.1% | 15.0% | 14.5% | 14.2% | 14.6% | 13.9% | 13.7% | 14.7% | 14.8% | 15.6% | 13.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 786M | 950M | 949M | 1.1B | 1.1B | 1.1B | 1.2B | 1.2B | 1.1B | 1.0B | 1.1B | 1.2B | 1.2B |
| Free Cash Flow | 773M | 932M | 925M | 1.1B | 1.1B | 1.1B | 1.1B | 1.2B | 1.1B | 1.0B | 1.0B | 1.2B | 1.2B |
| Owner Earnings | 714M | 863M | 856M | 1.0B | 1.0B | 981M | 1.0B | 1.1B | 944M | 870M | 879M | 969M | 969M |
| CapEx | 13M | 17M | 24M | 29M | 17M | 26M | 19M | 16M | 22M | 19M | 24M | 27M | 27M |
| Maint. CapEx | 9.2M | 10M | 11M | 13M | 16M | 17M | 19M | 21M | 23M | 23M | 24M | 25M | 25M |
| Growth CapEx | 3.6M | 7.0M | 13M | 16M | 800K | 9.2M | 400K | 0 | 0 | 0 | 200K | 1.8M | 1.8M |
| D&A | 9.2M | 10M | 11M | 13M | 16M | 17M | 19M | 21M | 23M | 23M | 24M | 25M | 25M |
| CapEx/OCF | 1.6% | 1.8% | 2.5% | 2.6% | 1.5% | 2.3% | 1.7% | 1.3% | 2.0% | 1.8% | 2.3% | N/A | 2.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 768M | 986M | 988M | 995M | 1.1B | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B | 1.4B | 1.4B |
| Buyback Yield | 5.0% | 6.5% | 6.7% | 5.8% | 6.7% | 7.5% | 6.6% | 8.2% | 8.2% | 7.1% | 6.1% | 0.0% | 9.6% |
| Stock-Based Comp | 63M | 76M | 83M | 87M | 89M | 107M | 113M | 120M | 131M | 145M | 150M | 206M | 206M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -3.5B | -3.3B | -4.1B | 207M |
| Cash & Equiv. | 262M | 192M | 187M | 245M | 304M | 279M | 256M | 272M | 196M | 538M | 506M | 1.8B | 1.8B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 | 2.0B | 2.0B |
| Debt/Equity | 0.36 | 0.44 | 0.49 | 0.52 | 0.54 | 0.62 | 0.68 | 0.81 | 0.95 | 0.01 | 0.01 | 0.70 | 0.70 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0 | 0.0 |
| Equity | 3.6B | 3.5B | 3.5B | 3.6B | 3.8B | 3.6B | 3.5B | 3.3B | 2.9B | 2.8B | 2.8B | 2.9B | 2.9B |
| Total Assets | 4.9B | 5.1B | 5.2B | 5.5B | 5.8B | 5.8B | 5.8B | 5.9B | 5.7B | 5.7B | 5.8B | 7.8B | 7.8B |
| Total Liabilities | 1.3B | 1.5B | 1.7B | 1.9B | 2.1B | 2.2B | 2.4B | 2.6B | 2.8B | 2.9B | 3.0B | 4.9B | 4.9B |
| Intangibles | 14M | 26M | 22M | 18M | 41M | 43M | 39M | 61M | 59M | 194M | 201M | 214M | 214M |
| Retained Earnings | 5.9B | 6.6B | 7.3B | 8.2B | 9.0B | 9.9B | 10.7B | 11.5B | 12.3B | 13.2B | 14.0B | 15.1B | 15.1B |
| Working Capital | 781M | 679M | 727M | 758M | 990M | 738M | 735M | 626M | 493M | 342M | 249M | 2.0B | 2.0B |
| Current Assets | 1.7B | 1.7B | 1.9B | 2.0B | 2.3B | 2.1B | 2.3B | 2.3B | 2.3B | 2.3B | 2.2B | 4.0B | 4.0B |
| Current Liabilities | 933M | 1.1B | 1.2B | 1.2B | 1.3B | 1.4B | 1.5B | 1.7B | 1.8B | 1.9B | 1.9B | 1.9B | 1.9B |
| Per Share Data | |||||||||||||
| EPS | 3.43 | 3.74 | 4.18 | 4.82 | 5.15 | 5.43 | 5.96 | 6.08 | 6.31 | 7.10 | 7.46 | 9.62 | 9.62 |
| Owner EPS | 3.71 | 4.71 | 4.93 | 6.06 | 6.51 | 6.45 | 7.25 | 7.92 | 7.48 | 7.35 | 7.75 | 8.82 | 8.82 |
| Book Value | 18.92 | 19.26 | 20.13 | 21.61 | 23.66 | 23.47 | 24.40 | 24.28 | 23.19 | 23.84 | 24.61 | 26.23 | 26.23 |
| Cash Flow/Share | 4.09 | 5.18 | 5.47 | 6.66 | 7.17 | 7.26 | 8.17 | 8.97 | 8.70 | 8.77 | 9.28 | 10.92 | 9.85 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.00 |
| Shares Out. | 192.3M | 183.4M | 173.4M | 166.6M | 159.5M | 152.1M | 142.0M | 134.1M | 126.3M | 118.4M | 113.4M | 109.9M | 109.9M |
| Valuation | |||||||||||||
| P/E Ratio | 23.3 | 22.1 | 20.4 | 21.5 | 20.0 | 20.6 | 23.1 | 19.4 | 19.8 | 21.5 | 25.2 | N/A | 13.8 |
| P/FCF | 19.9 | 16.2 | 16.0 | 16.0 | 14.6 | 15.8 | 17.1 | 13.3 | 14.7 | 17.7 | 20.7 | N/A | 12.4 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 17.8 |
| Price/Book | 4.2 | 4.3 | 4.2 | 4.8 | 4.4 | 4.8 | 5.6 | 4.8 | 5.4 | 6.4 | 7.6 | N/A | 5.1 |
| Price/Sales | 8.8 | 9.2 | 8.1 | 9.5 | 8.9 | 8.7 | 7.9 | 7.4 | 6.8 | 6.4 | 7.6 | N/A | 5.4 |
| FCF Yield | 5.0% | 6.2% | 6.3% | 6.3% | 6.9% | 6.3% | 5.8% | 7.5% | 6.8% | 5.6% | 4.8% | N/A | 8.0% |
| Market Cap | 15.4B | 15.1B | 14.8B | 17.3B | 16.4B | 17.0B | 19.5B | 15.8B | 15.8B | 18.1B | 21.3B | 0 | 14.6B |
| Avg. Price | 68.44 | 81.99 | 80.91 | 105.93 | 106.36 | 114.45 | 114.14 | 119.30 | 125.99 | 131.32 | 171.91 | 0.00 | 132.75 |
| Year-End Price | 80.06 | 82.54 | 85.18 | 103.68 | 102.91 | 111.80 | 137.59 | 117.68 | 124.91 | 152.56 | 187.90 | 0.00 | 132.75 |
CHECK POINT SOFTWARE TECHNOLOGIES LTD passes 6 of 9 quality checks, suggesting mixed fundamentals.
CHECK POINT SOFTWARE TECHNOLOGIES LTD trades at 17.8x trailing earnings, compared to its 15-year median P/E of 20.6x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 14.6x vs a median of 16.0x. The company's 5-year average ROIC is 26.2% with a gross margin of 57.3%. Total shareholder yield (buybacks) is 9.6%. At current prices, the estimated annualized return to fair value is +3.5%.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) reported annual revenue of $2.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a net profit margin of 38.8%. This is a strong margin indicating high profitability.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) generated $1.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a debt-to-equity ratio of 0.70. This indicates moderate leverage.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) reported earnings per share (EPS) of $9.62 in its most recent fiscal year.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a return on equity (ROE) of 37.3%. This indicates the company generates strong returns for shareholders.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a 5-year average gross margin of 57.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) has a book value per share of $26.23, based on its most recent annual SEC filing.