# Check Point Software Technologies (CHKP.US)

Canonical: https://gigainvestors.com/s/CHKP

Analysis as of: 2026-10-16T07:27:24.814Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $138.10 per share; close as of 2026-10-15.

Estimated value: low $159.98 per share, central $218.67 per share, high $252.99 per share. Buy at or below the central value $218.67 per share. Valuation as of 2026-10-16T07:27:24.814Z; scenarios are not confidence intervals.

Expected annual return: 14.5% at the stated quote. About 14.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.50×

- FY2018: 0.48×

- FY2019: 0.44×

- FY2020: 0.44×

- FY2021: 0.42×

- FY2022: 0.38×

- FY2023: 0.37×

- FY2024: 0.34×

- FY2025: 0.30×

- LTM to Jun 2026: 0.29×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 63.6%

- ROIC, second-lowest year: 27.0%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 88.3%

- Recent gross margin (lower of latest and 3-year median): 86.7%

- Years with nonpositive capital: 3

- Capital spending / revenue: 0.9%

- ROIC including acquisitions, ten-year median: 49.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 52.5%

- FY2017: 55.5%

- FY2018: 71.6%

- FY2019: 75.1%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: 27.2%

- FY2024: 27.0%

- FY2025: 17.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.5B

- Net income, five-year total: $4.4B

- Return on incremental invested capital: 97.1%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.2 pp

- Working capital / revenue, final three-year average: 26.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.02×

- FY2022: 1.02×

- FY2023: 1.03×

- FY2024: 1.07×

- FY2025: 1.06×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 55.5% vs 27.0%

- Per-share earnings: 4.27 to 7.54 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.9%

- Ordinary dilution, 5-year annual growth: -4.8%

- Market cap gain: $5.8B

- Cumulative retained earnings: $7.8B

- Diluted shares, 10-year annual growth: -4.9%

- Diluted shares, 5-year annual growth: -4.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.4%

- Per-share value change: $3.27

- Per-share value, starting three-year median: $4.27

- Per-share value, ending three-year median: $7.54

- Buybacks concentrated in cheaper years (correlation): 0.54

- Average buyback yield: 7.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.3B

- Cumulative net income, 10 years: $8.4B

- ROIC, first three-year median: 55.5%

- ROIC, last three-year median: 27.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.27

- FY2017: $4.89

- FY2018: $5.22

- FY2019: $5.58

- FY2020: $6.10

- FY2021: $7.07

- FY2022: $6.58

- FY2023: $7.44

- FY2024: $7.54

- FY2025: $9.75

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -1.8%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 17.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.13×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.74×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2017: -5.6%

- FY2018: -5.5%

- FY2019: -4.8%

- FY2020: -5.4%

- FY2021: -6.6%

- FY2022: -5.3%

- FY2023: -3.5%

- FY2024: -3.6%

- FY2025: -1.8%

## Holders

## Price story

Down 40% since May 2025 · "Raymond James downgrades Check Point on worsening channel trends" (finance.yahoo.com, Jul 2026) · sales +1.4%

Story as of 2026-10-16T09:58:30.143Z; price observation 2026-10-15.

Price needs cash profits to grow 0.5% a year for ten years

- 2025-07-30: Check Point Earnings Edge By Views, Billings Light. Cybersecurity Stock Falls. ([finance.yahoo.com](https://finance.yahoo.com/m/2baadd32-cc7b-3e73-b24a-ad64d511811a/check-point-earnings-edge-by.html))

- 2025-09-25: Check Point Software Achieves FedRAMP Authorization, Empowering U.S. Federal Agencies with AI-Powered Cyber Security ([finance.yahoo.com](https://finance.yahoo.com/news/check-point-software-achieves-fedramp-144100819.html))

- 2026-04-30: Check Point Earnings Beat, But Revenue, Billings Miss. Cybersecurity Stock Falls. ([finance.yahoo.com](https://finance.yahoo.com/m/f26878d5-60ec-312e-8c9d-cb98995cbb5e/check-point-earnings-beat%2C.html))

- 2026-05-01: Check Point Software Technologies' Q1 Results Disrupted by Changes in Go-To-Market Strategy, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/check-point-software-technologies-apos-174302217.html))

- 2026-08-12: Check Point Sees AI Security Spending Surge as 2027 Growth Setup Takes Shape ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/check-point-sees-ai-security-080214172.html))

### Sales · FY2025–2026

sales +1.4%; source https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm; observed 2026-03-31.

- FY2017: $1.9B 

- FY2018: $1.9B 

- FY2019: $2.0B 

- FY2020: $2.1B 

- FY2021: $2.2B 

- FY2022: $2.3B 

- FY2023: $2.4B 

- FY2024: $2.6B 

- FY2025: $2.7B 

- FY2026: $2.8B 

### Gross margin · FY2025

gross margin 86.7%; source https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm; observed 2026-03-31.

- FY2016: 88.4% 

- FY2017: 88.5% 

- FY2018: 89.5% 

- FY2019: 89.2% 

- FY2020: 89.0% 

- FY2021: 88.1% 

- FY2022: 86.9% 

- FY2023: 88.3% 

- FY2024: 87.6% 

- FY2025: 86.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 2.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm (filed 2026-03-31); FY2025: revenue 2725400000; grossProfit 2363600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHKP.US: Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. It provides a multilevel security architecture that defends enterprises' cloud, network, mobile devices, endpoints information, and IOT solutions. The company offers Mesh Network Security, which comprises Firewall, Maestro Hyperscale Firewall, Firewall Software R82.10, Spark Firewall, and AI Powered Security Management for hybrid cloud, internet and perimeter gateways, and branch locations. It also provides Workspace Security Platform, including email, endpoint, mobile, browser, and XDR security solutions across devices, browsers, SaaS apps, and remote access. In addition, the company offers Threat Exposure Management platforms comprising threat intelligence, vulnerability detection and prioritization, and safe remediation. Further, it offers AI Security platforms comprising workforce and agent security, and red teaming solutions. Additionally, the company offers cyber security services, including managed detection and response, incident response, security consulting and managed, security consulting, professional, and training services. The company also provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing its products comprising design planning and security implementation; and certification and educational training services on its products. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv-Yafo, Israel.

### Why customers stay

Margins ranged from 86.7% to 88.3% during 2023–25; it earns 63.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2023: grossProfit / revenue = 88.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2024: grossProfit / revenue = 87.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm (filed 2026-03-31); FY2025: grossProfit / revenue = 86.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); 10-year return on capital observations [[2016,0.5252671644260025],[2017,0.554703824638479],[2018,0.7164710856418508],[2019,0.7512894567619349],[2020,1.015742005873317],[2021,2.122660177522287],[2022,13.802330163642239],[2023,0.2719993387458022],[2024,0.27032337867829115],[2025,0.17121255819702524]]; median 0.6355874551401649. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 87% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm (filed 2026-03-31); Gross margin observations: [[2021,0.8808842532767215],[2022,0.8693506159062621],[2023,0.8829668281774133]]; range within 2 percentage points.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 1.4 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2016: growth capex 3298510.0038067624; upkeep 20751489.996193238; owner earnings 718831510.0038067. Growth capex / owner earnings = 0.004588710925859795.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2017: growth capex 3680896.2825618275; upkeep 25119103.717438173; owner earnings 794439896.2825618. Growth capex / owner earnings = 0.004633322545589563.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2018: growth capex 0; upkeep 17200000; owner earnings 824893000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2019: growth capex 1900000; upkeep 24000000; owner earnings 825700000. Growth capex / owner earnings = 0.0023010778733196075.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2020: growth capex 0; upkeep 19300000; owner earnings 854400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2021: growth capex 0; upkeep 15900000; owner earnings 830400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2022: growth capex 0; upkeep 22100000; owner earnings 811000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2023: growth capex 0; upkeep 18600000; owner earnings 869100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2024: growth capex 0; upkeep 24200000; owner earnings 905100000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm (filed 2026-03-31); FY2025: growth capex 0; upkeep 26600000; owner earnings 1123200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm (filed 2026-03-31); FY2025: cash repurchases 1400000000 USD.

### Are managers owners

Insiders own 24.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHKP.US SharesStats.PercentInsiders = 24.535999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 0.5% yearly over ten years; actual growth was 10.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); Ten-year compound average after fade. Initial solved rate -0.020388930017352258. Price 138.1; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.810895957771913 → FY2025 10.361623616236162. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $84.56 per share

- 2016-11: $82.33 per share

- 2016-12: $84.46 per share

- 2017-01: $98.77 per share

- 2017-02: $98.91 per share

- 2017-03: $102.66 per share

- 2017-04: $104.01 per share

- 2017-05: $112.05 per share

- 2017-06: $109.08 per share

- 2017-07: $105.78 per share

- 2017-08: $111.87 per share

- 2017-09: $114.02 per share

- 2017-10: $117.71 per share

- 2017-11: $104.29 per share

- 2017-12: $103.62 per share

- 2018-01: $103.41 per share

- 2018-02: $103.89 per share

- 2018-03: $99.34 per share

- 2018-04: $96.51 per share

- 2018-05: $97.36 per share

- 2018-06: $97.68 per share

- 2018-07: $112.67 per share

- 2018-08: $116.19 per share

- 2018-09: $117.67 per share

- 2018-10: $111.00 per share

- 2018-11: $111.81 per share

- 2018-12: $102.65 per share

- 2019-01: $111.92 per share

- 2019-02: $122.30 per share

- 2019-03: $126.49 per share

- 2019-04: $120.76 per share

- 2019-05: $110.28 per share

- 2019-06: $115.61 per share

- 2019-07: $111.95 per share

- 2019-08: $107.70 per share

- 2019-09: $109.50 per share

- 2019-10: $112.41 per share

- 2019-11: $117.88 per share

- 2019-12: $110.96 per share

- 2020-01: $114.31 per share

- 2020-02: $103.80 per share

- 2020-03: $100.54 per share

- 2020-04: $105.74 per share

- 2020-05: $109.67 per share

- 2020-06: $107.43 per share

- 2020-07: $125.35 per share

- 2020-08: $126.26 per share

- 2020-09: $120.34 per share

- 2020-10: $113.56 per share

- 2020-11: $117.68 per share

- 2020-12: $132.91 per share

- 2021-01: $127.74 per share

- 2021-02: $110.24 per share

- 2021-03: $111.97 per share

- 2021-04: $116.81 per share

- 2021-05: $116.98 per share

- 2021-06: $116.13 per share

- 2021-07: $127.10 per share

- 2021-08: $125.63 per share

- 2021-09: $113.04 per share

- 2021-10: $119.60 per share

- 2021-11: $111.31 per share

- 2021-12: $116.56 per share

- 2022-01: $121.01 per share

- 2022-02: $144.88 per share

- 2022-03: $138.26 per share

- 2022-04: $126.29 per share

- 2022-05: $125.08 per share

- 2022-06: $121.78 per share

- 2022-07: $124.60 per share

- 2022-08: $120.24 per share

- 2022-09: $112.02 per share

- 2022-10: $129.23 per share

- 2022-11: $132.83 per share

- 2022-12: $126.16 per share

- 2023-01: $127.20 per share

- 2023-02: $123.72 per share

- 2023-03: $130.00 per share

- 2023-04: $127.36 per share

- 2023-05: $124.81 per share

- 2023-06: $125.62 per share

- 2023-07: $132.21 per share

- 2023-08: $134.59 per share

- 2023-09: $133.28 per share

- 2023-10: $134.25 per share

- 2023-11: $146.00 per share

- 2023-12: $152.79 per share

- 2024-01: $158.93 per share

- 2024-02: $160.42 per share

- 2024-03: $164.01 per share

- 2024-04: $149.42 per share

- 2024-05: $150.50 per share

- 2024-06: $165.00 per share

- 2024-07: $183.45 per share

- 2024-08: $192.50 per share

- 2024-09: $192.81 per share

- 2024-10: $173.21 per share

- 2024-11: $182.00 per share

- 2024-12: $186.70 per share

- 2025-01: $218.02 per share

- 2025-02: $220.26 per share

- 2025-03: $227.92 per share

- 2025-04: $219.56 per share

- 2025-05: $228.88 per share

- 2025-06: $221.25 per share

- 2025-07: $186.20 per share

- 2025-08: $193.14 per share

- 2025-09: $206.91 per share

- 2025-10: $195.68 per share

- 2025-11: $186.77 per share

- 2025-12: $185.56 per share

- 2026-01: $179.51 per share

- 2026-02: $152.07 per share

- 2026-03: $142.85 per share

- 2026-04: $112.47 per share

- 2026-05: $135.05 per share

- 2026-06: $131.43 per share

- 2026-07: $127.13 per share

- 2026-08: $138.91 per share

- 2026-09: $128.35 per share

- 2026-10: $138.10 per share

## Annual estimated value (USD per share)

- FY2016: low $73.65 per share, central $103.81 per share, high $120.64 per share

- FY2017: low $78.56 per share, central $110.76 per share, high $128.72 per share

- FY2018: low $86.21 per share, central $120.16 per share, high $139.30 per share

- FY2019: low $90.83 per share, central $125.07 per share, high $145.07 per share

- FY2020: low $97.57 per share, central $131.80 per share, high $152.61 per share

- FY2021: low $122.54 per share, central $165.77 per share, high $192.05 per share

- FY2022: low $122.29 per share, central $163.48 per share, high $189.46 per share

- FY2023: low $127.15 per share, central $172.50 per share, high $200.14 per share

- FY2024: low $126.39 per share, central $172.02 per share, high $199.81 per share

- FY2025: low $155.64 per share, central $210.14 per share, high $242.01 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1015922/000117891326001932/zk2634942.htm); period 2025-12-31, filed 2026-03-31.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.