Check Point Financials

CHKP Stock  USD 153.65  -2.13  -1.37%   
Fundamental ratio analysis highlights Check Point capital allocation discipline and operational structure. Profitability levels reflect stable operating returns across recent reporting periods. In technology businesses, recurring revenue quality, R&D investment discipline, and operating margin expansion are key durability indicators. Year-over-year analysis suggests Tax Provision is positioned to decrease significantly. The preceding year’s Tax Provision stood at 113.76 Million. As of this Friday, Reconciled Depreciation is expected to outperform prior levels and reach approximately 100.9 M, whereas Gross Profit is moving lower toward slightly above 1.2 B.
Analysis of Check Point cash flow over time is an excellent tool to project Check Point Software future capital expenditures as well as to predict the amount of cash needed to cover cost of sales, R&D expenses or production expansions. Investors should almost always look for trends in cash flow indicators such as Free Cash Flow of 712.1 M or Begin Period Cash Flow of 327.2 M as it is a great indicator of Check Point ability to facilitate future growth, repay debt on time or pay out dividends.
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Check Point Cash Flow Account Activities

Year-over-year analysis suggests Change In Cash is positioned to increase significantly. The preceding year’s Change In Cash stood at 1.29 Billion. As of this Friday, Depreciation is expected to outperform prior levels and reach approximately 98 M, whereas Begin Period Cash Flow is moving lower toward slightly above 327.2 M.

Key indicators impacting Check Point's financial strength

Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.50.3878
Significantly Up
Slightly volatile
Return On Assets0.190.1354
Significantly Up
Very volatile
Return On Equity0.260.3667
Way Down
Slightly volatile
Debt-to-Equity Ratio0.720.6843
Sufficiently Up
Slightly volatile
Operating Income601.7 M831.1 M
Way Down
Slightly volatile
Current Ratio2.92.0468
Significantly Up
Slightly volatile
Net Receivables807.6 M769.1 M
Sufficiently Up
Slightly volatile
Total Revenue2.9 B2.7 B
Sufficiently Up
Slightly volatile
Total Assets8.2 B7.8 B
Sufficiently Up
Slightly volatile
Investors considering Check Point should prioritize understanding Check Point's ability to service its debt obligations. High interest expense relative to operating income can constrain future investment and dividend capacity. Check Point Software reported $12.99 in Cash Per Share, $11.82 in Free Cash Flow Per Share, and a Cash Ratio of 0.81.

Net Income

552.33 Million
  
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Tracking Check Point's key financial metrics over multiple periods helps investors identify inflection points in growth, profitability, or leverage before they become apparent in Check Point's stock price.
Investors analyzing Check Point Software's financial statements should be aware that reported metrics may be influenced by accrual accounting, revenue recognition timing, and other discretionary choices made by Check Point's management.

Check Point Stock Summary

Check Point competes with VeriSign, Godaddy, Corpay, Toast, and SSC Technologies. Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel. Check Point operates under Software Providers classification in the United States and is traded on NASDAQ Exchange. It employs 5642 people.
Specialization
Information Technology, Software - Infrastructure
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
ISINIL0010824113
Business Address5 Shlomo Kaplan
SectorSoftware
IndustryInformation Technology
BenchmarkDow Jones Industrial
Websitewww.checkpoint.com
Phone972 3 753 4555
CurrencyUSD - US Dollar

Key Financial Ratios

Key Balance Sheet Accounts

Financial resilience depends on more than just revenue. With 1.61 B in liquid assets and a current ratio of 1.23, Check Point shows how well prepared the company is for unexpected demands on capital.
202120222023202420252026 (projected)
Total Assets5.9B5.7B5.7B5.8B7.8B8.2B
Other Current Liab416.8M411.9M1.9B380.7M1.5B1.6B
Net Debt-271.9M-196M-511.6M-476.4M172.1M180.7M
Retained Earnings11.5B12.3B13.2B14.0B15.1B15.8B
Accounts Payable9.8M29.6M48.3M54.8M406.6M426.9M
Cash271.9M196M537.7M506.2M1.8B1.9B
Net Receivables597.8M644.2M673.2M728.8M769.1M807.6M
Other Current Assets46.4M50M54.5M92.7M180M189M
Total Liab2.6B2.8B2.9B3.0B4.9B5.2B
Total Current Assets2.3B2.3B2.3B2.2B4.0B4.2B
Other Liab770.2M798.5M904.6M936M1.1B1.1B
Other Assets119.9M132M149.1M11.1M12.8M12.1M
Good Will1.2B1.2B1.6B1.7B2.0B2.0B
Intangible Assets61M58.8M194.1M201.4M2.1B2.2B
Net Tangible Assets2.5B2.4B2.0B1.6B1.5B2.0B
Net Invested Capital3.3B2.9B2.8B2.8B2.5B2.6B
Net Working Capital625.8M492.6M341.6M249.2M224.3M213.1M

Key Income Statement Accounts

Earnings per share of 9.62 distill Check Point's profitability into a single per-share figure. But the income statement accounts below reveal the revenue, costs, and margins that produce that number.
202120222023202420252026 (projected)
Interest Expense2.5M2.2M4.6M1.8M1.6M1.5M
Total Revenue2.2B2.3B2.4B2.6B2.7B2.9B
Gross Profit1.9B2.0B2.1B2.2B2.3B1.2B
Operating Income907.5M884.3M899.1M876M831.1M601.7M
Ebit907.5M884.3M975.6M972.1M831.1M616.6M
Ebitda938.2M920.5M1.0B1.1B924M647.5M
Cost Of Revenue258.1M304.4M282.6M319.3M397.4M417.3M
Income Before Tax949.6M928.3M975.6M972.1M945.1M651.2M
Net Income815.6M796.9M840.3M845.7M1.1B552.3M
Income Tax Expense134M131.4M135.3M126.4M-111.8M-106.2M
Research Development292.7M349.9M368.9M394.9M456.7M479.5M
Tax Provision134M131.4M113.7M126.4M113.8M116.1M
Interest Income42.1M44M97M93.6M107.6M81.0M
Net Interest Income42.1M44M95.2M91.8M105.6M80.3M

Key Cash Accounts

Free cash flow — operating cash minus capital expenditures — is the money available for dividends, buybacks, and debt reduction. Check Point's cash flow accounts below break down the components, starting from 1.23 B in operating cash flow.
202120222023202420252026 (projected)
Change In Cash16.2M-75.9M341.7M-31.5M1.3B1.4B
Free Cash Flow1.2B1.1B1.0B1.0B1.2B712.1M
Depreciation30.7M36.2M47.4M83.6M93.3M98.0M
Other Non Cash Items25.1M18.7M9.9M-6.1M-7.0M-6.7M
Capital Expenditures15.9M22.1M18.6M24.2M26.6M15.0M
Net Income815.6M796.9M840.3M845.7M1.1B552.3M
End Period Cash Flow271.9M196M537.7M506.2M1.8B1.9B
Investments-235.6M-70.4M-411.4M-24M-21.6M-22.7M
Change To Netincome121.2M133.1M120.1M149.6M172.0M123.9M

Financial Ratios Relationships

Comparative market metrics assess Check Point's pricing relative to peers. Comparative ratio analysis across Check Point's competitive landscape reveals how its fundamental profile stacks up against industry benchmarks. More Info.
Check Point Software is ranked second for return on equity against industry peers. It is rated below average for return on asset against industry peers with Return On Asset measuring nearly 0.21 against Return On Equity. Return On Equity runs about 4.87 times Return On Asset for Check Point Software. Year-over-year analysis suggests Return On Equity is positioned to increase slightly. The preceding year’s Return On Equity stood at 0.37. Valuation ratios benchmark Check Point against sector averages.

Core Fundamental Drivers

Looking at one cash flow statement accounts rarely explains the full picture. A combined view improves understanding of Check Point Software's financial condition. Check Point Software currently reports revenue of 2.73 B, P/E of 21.8, profit margin of 38.78%. Check Point has a market cap of 16.5 B, operating margin of 31.27%, ROE of 37.27%. Review Trending Equities for broader portfolio context. This reflects a position in Check Point Software across the allocation. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in industry.
Year-over-year analysis suggests Change In Cash is positioned to increase significantly. The preceding year’s Change In Cash stood at 1.29 Billion. As of this Friday, Depreciation is expected to outperform prior levels and reach approximately 98 M, whereas Begin Period Cash Flow is moving lower toward slightly above 327.2 M.
 2021 2022 2025 2026 (projected)
Change To Liabilities266M190.1M218.6M154.4M
Change To Netincome120.1M149.6M172.0M123.9M

Financial Account Correlations

0.08-0.760.10.77-0.410.2-0.50.180.960.76-0.41-0.10.120.260.420.340.02
0.080.280.240.260.230.76-0.210.970.110.56-0.74-0.640.120.210.580.34-0.19
-0.760.28-0.17-0.720.58-0.020.280.09-0.76-0.530.15-0.13-0.13-0.18-0.34-0.19-0.11
0.10.24-0.170.41-0.24-0.05-0.280.330.380.150.1-0.290.050.15-0.050.010.11
0.770.26-0.720.41-0.410.31-0.710.360.830.84-0.52-0.10.190.370.550.46-0.03
-0.410.230.58-0.24-0.41-0.030.270.08-0.46-0.290.07-0.03-0.39-0.36-0.010.030.08
0.20.76-0.02-0.050.31-0.03-0.180.80.140.62-0.79-0.490.220.50.680.2-0.27
-0.5-0.210.28-0.28-0.710.27-0.18-0.22-0.54-0.540.330.0-0.15-0.43-0.13-0.51-0.13
0.180.970.090.330.360.080.8-0.220.220.63-0.76-0.660.170.230.610.35-0.15
0.960.11-0.760.380.83-0.460.14-0.540.220.74-0.33-0.170.120.290.350.30.04
0.760.56-0.530.150.84-0.290.62-0.540.630.74-0.87-0.430.20.430.720.52-0.2
-0.41-0.740.150.1-0.520.07-0.790.33-0.76-0.33-0.870.52-0.22-0.43-0.73-0.450.37
-0.1-0.64-0.13-0.29-0.1-0.03-0.490.0-0.66-0.17-0.430.520.25-0.21-0.17-0.21-0.02
0.120.12-0.130.050.19-0.390.22-0.150.170.120.2-0.220.250.360.2-0.32-0.63
0.260.21-0.180.150.37-0.360.5-0.430.230.290.43-0.43-0.210.360.2-0.15-0.51
0.420.58-0.34-0.050.55-0.010.68-0.130.610.350.72-0.73-0.170.20.20.37-0.17
0.340.34-0.190.010.460.030.2-0.510.350.30.52-0.45-0.21-0.32-0.150.370.48
0.02-0.19-0.110.11-0.030.08-0.27-0.13-0.150.04-0.20.37-0.02-0.63-0.51-0.170.48
Click cells to compare fundamentals

Account Relationship Matchups

cash flow statement Accounts

202120222023202420252026 (projected)
Change In Cash16.2M-75.9M341.7M-31.5M1.3B1.4B
Free Cash Flow1.2B1.1B1.0B1.0B1.2B712.1M
Depreciation30.7M36.2M47.4M83.6M93.3M98.0M
Other Non Cash Items25.1M18.7M9.9M-6.1M-7.0M-6.7M
Capital Expenditures15.9M22.1M18.6M24.2M26.6M15.0M
Net Income815.6M796.9M840.3M845.7M1.1B552.3M
End Period Cash Flow271.9M196M537.7M506.2M1.8B1.9B
Investments-235.6M-70.4M-411.4M-24M-21.6M-22.7M
Change To Netincome121.2M133.1M120.1M149.6M172.0M123.9M

Financial Metrics, Fundamentals & Methodology

Check Point reports annual revenue of 2.73 B, a profit margin of 38.78%, ROE of 37.27%, debt-to-equity of 0.01. Long-term financial strength of Check Point depends on its ability to manage growth and leverage cycles. Growth durability influences forward valuation assumptions. Check Point financial statements indicate revenue of 2.73 B, positive EPS of 9.62, operating margin of 31.27%, current ratio of 1.23.

The analytics block for Check Point Software relies on periodic company reporting and market reference feeds, with quality checks and normalization applied before rendering. Analyst inputs may be included when coverage is available. Timing can vary by data vendor. Statement-level metrics reflect company-reported GAAP or IFRS formats for the relevant filing period.

This content is curated and reviewed by:

Vlad Skutelnik - Macroaxis Contributor

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