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Check Point Software Technologies Ltd. (CHKP) 10-Year Financial Performance & Capital Metrics

CHKP • • Industrial / General
TechnologyInfrastructure SoftwareCybersecurity & Identity ManagementNetwork Security & Firewall
AboutCheck Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a portfolio of network security, endpoint security, data security, and management solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against 5th and 6th generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. The company also offers security gateways and software platforms that support small and medium sized business (SMB) to large enterprise data center and telco-grade environments; and threat prevention technologies and zero-day protections. In addition, the company provides cloud network security, security and posture management, cloud workload protection, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Further, the company provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through multiple distribution channels, including distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.Show more
  • Revenue $2.56B +6.2%
  • EBITDA $960M +1.4%
  • Net Income $846M +0.6%
  • EPS (Diluted) 7.46 +5.1%
  • Gross Margin 87.55% -0.8%
  • EBITDA Margin 37.41% -4.6%
  • Operating Margin 34.15% -8.3%
  • Net Margin 32.97% -5.3%
  • ROE 30.15% +3.2%
  • ROIC 28.59% +6.3%
  • Debt/Equity 0.01
  • Interest Coverage 486.67 +24.5%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Company is almost debt free
  • ✓Excellent 3Y average ROE of 28.4%
  • ✓Strong Piotroski F-Score: 7/9
  • ✓FCF machine: 40.1% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Share count reduced 4.2% through buybacks

✗Weaknesses

No significant weaknesses identified

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.54%
5Y5.16%
3Y5.78%
TTM6.31%

Profit (Net Income) CAGR

10Y2.52%
5Y0.48%
3Y1.22%
TTM20.6%

EPS CAGR

10Y8.08%
5Y6.56%
3Y7.06%
TTM24.73%

ROCE

10Y Avg21.58%
5Y Avg22.14%
3Y Avg22.82%
Latest23.08%

Peer Comparison

Network Security & Firewall
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
RDWRRadware Ltd.1.07B24.641765.2%5.66%4.28%6.2%0.05
PANWPalo Alto Networks, Inc.130.85B187.73117.3314.87%11.69%12.89%2.65%0.04
FTNTFortinet, Inc.56.76B76.3233.7712.27%28.58%254.88%3.31%0.67
ATENA10 Networks, Inc.1.26B17.5826.243.97%17.78%24.52%6.2%0.05
CHKPCheck Point Software Technologies Ltd.20.24B188.5425.276.22%37.62%32.79%5.08%0.01
ALARAlarum Technologies Ltd.67.12M9.3611.0120.88%3.28%3.83%13.1%0.06
HUBCHUB Cyber Security Ltd.9.93M4.55-0.30-30.7%-176.14%
INTZIntrusion Inc.29.55M1.47-0.992.85%-112.36%-83.5%0.44

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+1.63B1.74B1.85B1.92B1.99B2.06B2.17B2.33B2.41B2.56B
Revenue Growth %0.09%0.07%0.07%0.03%0.04%0.04%0.05%0.08%0.04%0.06%
Cost of Goods Sold+189.06M202M212.96M201.38M215.4M226.5M258.1M304.4M282.6M319.3M
COGS % of Revenue0.12%0.12%0.11%0.11%0.11%0.11%0.12%0.13%0.12%0.12%
Gross Profit+1.44B1.54B1.64B1.72B1.78B1.84B1.91B2.03B2.13B2.25B
Gross Margin %0.88%0.88%0.89%0.89%0.89%0.89%0.88%0.87%0.88%0.88%
Gross Profit Growth %0.09%0.07%0.07%0.04%0.04%0.03%0.04%0.06%0.05%0.05%
Operating Expenses+601.06M687.03M717.78M801.32M897.6M934.2M1B1.14B1.23B1.37B
OpEx % of Revenue0.37%0.39%0.39%0.42%0.45%0.45%0.46%0.49%0.51%0.53%
Selling, General & Admin451.79M508.66M525.39M589.8M658.4M681.4M708.5M791.3M864.1M974.8M
SG&A % of Revenue0.28%0.29%0.28%0.31%0.33%0.33%0.33%0.34%0.36%0.38%
Research & Development149.28M178.37M192.39M211.52M239.2M252.8M292.7M349.9M368.9M394.9M
R&D % of Revenue0.09%0.1%0.1%0.11%0.12%0.12%0.14%0.15%0.15%0.15%
Other Operating Expenses00011K000000
Operating Income+839.72M852.27M923.92M913.77M881.8M904.2M907.5M884.3M899.1M876M
Operating Margin %0.52%0.49%0.5%0.48%0.44%0.44%0.42%0.38%0.37%0.34%
Operating Income Growth %0.05%0.01%0.08%-0.01%-0.03%0.03%0%-0.03%0.02%-0.03%
EBITDA+853.69M867.01M940.55M934.56M905.8M931.3M938.2M920.5M946.5M959.6M
EBITDA Margin %0.52%0.5%0.51%0.49%0.45%0.45%0.43%0.4%0.39%0.37%
EBITDA Growth %0.05%0.02%0.08%-0.01%-0.03%0.03%0.01%-0.02%0.03%0.01%
D&A (Non-Cash Add-back)13.97M14.74M16.64M20.79M24M27.1M30.7M36.2M47.4M83.6M
EBIT839.72M852.27M970.95M981.2M881.8M904.2M907.5M884.3M977.9M973.9M
Net Interest Income+64.16M67.45M72.8M86.2M90.8M76M61.5M65.8M90.1M91.8M
Interest Income67.58M69.42M74.9M88.5M93.3M78.2M66.1M67.6M92.4M93.6M
Interest Expense3.42M1.97M2.1M2.3M2.5M2.2M4.6M1.8M2.3M1.8M
Other Income/Expense34.07M44.4M47.03M65.07M80.6M66.6M42.1M44M76.5M96.1M
Pretax Income+873.79M896.67M970.95M978.84M962.4M970.8M949.6M928.3M975.6M972.1M
Pretax Margin %0.54%0.51%0.52%0.51%0.48%0.47%0.44%0.4%0.4%0.38%
Income Tax+187.92M171.82M168.02M157.53M136.7M124.2M134M131.4M135.3M126.4M
Effective Tax Rate %0.78%0.81%0.83%0.84%0.86%0.87%0.86%0.86%0.86%0.87%
Net Income+685.87M724.85M802.92M821.3M825.7M846.6M815.6M796.9M840.3M845.7M
Net Margin %0.42%0.42%0.43%0.43%0.41%0.41%0.38%0.34%0.35%0.33%
Net Income Growth %0.04%0.06%0.11%0.02%0.01%0.03%-0.04%-0.02%0.05%0.01%
Net Income (Continuing)685.87M724.85M802.9M821.3M825.7M846.6M815.6M796.9M840.3M845.7M
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+3.744.184.825.155.435.966.086.317.107.46
EPS Growth %0.09%0.12%0.15%0.07%0.05%0.1%0.02%0.04%0.13%0.05%
EPS (Basic)3.834.264.935.245.486.036.136.367.197.65
Diluted Shares Outstanding183.62M173.3M166.6M159.4M152.1M142M134.1M126.34M118.35M113.4M
Basic Shares Outstanding179.22M170.16M162.7M156.6M150.6M140.5M133.1M125.21M116.91M110.6M
Dividend Payout Ratio----------

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+1.78B1.89B1.96B2.32B2.13B2.28B2.34B2.33B2.26B2.19B
Cash & Short-Term Investments1.28B1.37B1.41B1.75B1.58B1.69B1.69B1.64B1.53B1.37B
Cash Only192.31M187.43M245.01M303.63M279.2M255.7M271.9M196M537.7M506.2M
Short-Term Investments1.09B1.19B1.17B1.45B1.3B1.43B1.42B1.44B992.3M865.7M
Accounts Receivable410.76M478.51M472.22M495.4M495.8M540.8M597.8M644.2M657.7M728.8M
Days Sales Outstanding91.99100.392.9394.3590.7295.59100.7100.9299.42103.71
Inventory0000000000
Days Inventory Outstanding----------
Other Current Assets000000015.6M37M17.7M
Total Non-Current Assets+3.29B3.33B3.5B3.51B3.63B3.56B3.56B3.39B3.44B3.56B
Property, Plant & Equipment48.69M61.86M77.77M78.51M87.7M88.1M83.4M82.8M80.4M80.8M
Fixed Asset Turnover33.47x28.15x23.85x24.41x22.75x23.44x25.98x28.14x30.03x31.75x
Goodwill812.01M812.01M812.01M950.57M981.9M1B1.2B1.24B1.55B1.7B
Intangible Assets26.01M22.16M18.39M40.97M42.8M38.5M61M58.8M194.1M201.4M
Long-Term Investments2.33B2.3B2.44B2.29B2.37B2.31B2.09B1.87B1.43B1.41B
Other Non-Current Assets50.44M38.45M33.58M64.22M94.2M85.5M80.3M71.5M97.4M107.7M
Total Assets+5.07B5.22B5.46B5.83B5.76B5.84B5.9B5.72B5.7B5.75B
Asset Turnover0.32x0.33x0.34x0.33x0.35x0.35x0.37x0.41x0.42x0.45x
Asset Growth %0.02%0.03%0.05%0.07%-0.01%0.01%0.01%-0.03%-0.01%0.01%
Total Current Liabilities+1.06B1.17B1.21B1.33B1.4B1.54B1.71B1.84B1.92B1.94B
Accounts Payable17.83M20.02M12.22M20.7M15.9M17.5M9.8M29.6M48.3M54.8M
Days Payables Outstanding34.4336.1720.9537.5226.9428.213.8635.4962.3862.64
Short-Term Debt0000000008.8M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities169.6M170.11M0173.97M019M9.8M8.7M4.7M136.9M
Current Ratio1.68x1.62x1.63x1.74x1.53x1.48x1.37x1.27x1.18x1.13x
Quick Ratio1.68x1.62x1.63x1.74x1.53x1.48x1.37x1.27x1.18x1.13x
Cash Conversion Cycle----------
Total Non-Current Liabilities+481.16M560.65M655.88M723.9M799.4M829.2M931M956.3M958.4M1.02B
Long-Term Debt0000000000
Capital Lease Obligations00000000021M
Deferred Tax Liabilities240K000000000
Other Non-Current Liabilities292.67M309.49M347.59M366.1M424.6M455.9M481.3M441.9M464.5M470.9M
Total Liabilities1.54B1.73B1.86B2.06B2.2B2.37B2.64B2.8B2.87B2.97B
Total Debt+00000000029.8M
Net Debt-192.31M-187.43M-245.01M-303.6M-279.2M-255.7M-271.9M-196M-537.7M-476.4M
Debt / Equity---------0.01x
Debt / EBITDA---------0.03x
Net Debt / EBITDA-0.23x-0.22x-0.26x-0.32x-0.31x-0.27x-0.29x-0.21x-0.57x-0.50x
Interest Coverage245.75x432.62x439.96x397.29x352.72x411.00x197.28x491.28x390.91x486.67x
Total Equity+3.53B3.49B3.6B3.77B3.57B3.47B3.26B2.93B2.82B2.79B
Equity Growth %-0.03%-0.01%0.03%0.05%-0.05%-0.03%-0.06%-0.1%-0.04%-0.01%
Book Value per Share19.2320.1521.6123.6723.4624.4124.2923.1923.8424.60
Total Shareholders' Equity3.53B3.49B3.6B3.77B3.57B3.47B3.26B2.93B2.82B2.79B
Common Stock774K774K774K774K800K800K800K800K800K800K
Retained Earnings6.59B7.32B8.2B9.04B9.87B10.72B11.53B12.33B13.17B14.01B
Treasury Stock-4.04B-4.96B-5.89B-6.84B-8.09B-9.32B-10.55B-11.8B-13.04B-14.26B
Accumulated OCI-4.25M-9.25M-15.63M-24.5M21.7M40.7M-600K-97.9M-39.2M-10.3M
Minority Interest0000000000

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+949.5M949.27M1.11B1.14B1.1B1.16B1.2B1.1B1.04B1.05B
Operating CF Margin %0.58%0.55%0.6%0.6%0.55%0.56%0.56%0.47%0.43%0.41%
Operating CF Growth %0.21%-0%0.17%0.03%-0.03%0.05%0.04%-0.09%-0.06%0.01%
Net Income685.87M724.85M802.9M821.3M825.7M846.6M815.6M796.9M840.3M845.7M
Depreciation & Amortization13.97M14.74M16.7M20.8M24M27.1M30.7M36.2M47.4M83.6M
Stock-Based Compensation76.3M82.73M87.4M89.3M106.7M112.5M120.3M131.4M145.3M149.7M
Deferred Taxes-15.85M-32.59M64.6M16.8M9.5M10.5M-4M-500K-9.5M-12.1M
Other Non-Cash Items10.22M3.02M20.9M15.2M5M10.1M25.1M18.7M9.9M-6.1M
Working Capital Changes178.99M156.53M117.1M180.2M133.4M154.2M216.2M115.8M4.5M-8.4M
Change in Receivables-43.38M-67.74M6.3M-21.8M-400K-45M-51.6M-46.1M-9.9M-65.9M
Change in Inventory0000000000
Change in Payables5.18M2.18M-7.8M6.6M-4.8M1.6M-7.7M19.8M17.9M5.4M
Cash from Investing+-152.88M-109.8M-178.8M-330M60M-98.2M-75.3M-6.4M468.7M-24M
Capital Expenditures-17.35M-24.05M-28.8M-17.2M-25.9M-19.3M-15.9M-22.1M-18.6M-24.2M
CapEx % of Revenue0.01%0.01%0.02%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Acquisitions----------
Investments----------
Other Investing0000000000
Cash from Financing+-866.28M-844.35M-873.2M-755M-1.19B-1.09B-1.11B-1.17B-1.16B-1.06B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid0000000000
Share Repurchases----------
Other Financing119.46M143.54M122.1M348.9M89.3M211.4M187.1M131.9M122.7M240M
Net Change in Cash----------
Free Cash Flow+932.15M925.22M1.08B1.13B1.08B1.14B1.19B1.08B1.02B1.03B
FCF Margin %0.57%0.53%0.58%0.59%0.54%0.55%0.55%0.46%0.42%0.4%
FCF Growth %0.21%-0.01%0.17%0.04%-0.04%0.06%0.04%-0.09%-0.05%0.01%
FCF per Share5.085.346.497.077.098.048.868.528.619.07
FCF Conversion (FCF/Net Income)1.38x1.31x1.38x1.39x1.34x1.37x1.48x1.38x1.24x1.24x
Interest Paid0000000000
Taxes Paid123.94M180.07M143M67.9M87.3M90.8M101M113.5M118.7M122.5M

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)19.13%20.64%22.65%22.28%22.5%24.07%24.26%25.76%29.23%30.15%
Return on Invested Capital (ROIC)18.76%19.24%20.81%20.09%19.57%20.87%21.97%23.2%26.88%28.59%
Gross Margin88.4%88.4%88.52%89.49%89.2%89.03%88.09%86.94%88.3%87.55%
Net Margin42.08%41.63%43.29%42.85%41.39%41%37.64%34.2%34.8%32.97%
Debt / Equity---------0.01x
Interest Coverage245.75x432.62x439.96x397.29x352.72x411.00x197.28x491.28x390.91x486.67x
FCF Conversion1.38x1.31x1.38x1.39x1.34x1.37x1.48x1.38x1.24x1.24x
Revenue Growth8.96%6.84%6.51%3.33%4.09%3.51%4.93%7.53%3.64%6.22%

Revenue by Segment

2015201620172018201920202021202220232024
Security Subscriptions---542.32M610.3M671.1M755.2M858M981.2M1.1B
Security Subscriptions Growth----12.53%9.96%12.53%13.61%14.36%12.54%
Software updates and maintenance---848.6M873.7M880.2M897.7M917M936.1M952.9M
Software updates and maintenance Growth----2.96%0.74%1.99%2.15%2.08%1.79%
Product and Licensing---525.56M510.8M513.6M513.9M554.9M497.4M507.9M
Product and Licensing Growth-----2.81%0.55%0.06%7.98%-10.36%2.11%
Network Security Gateways318.62M389.88M-468.51M455.9M472.4M480.5M507.8M452M470.1M
Network Security Gateways Growth-22.37%---2.69%3.62%1.71%5.68%-10.99%4.00%
Other Product---57.05M54.9M41.2M33.4M47.1M45.4M37.8M
Other Product Growth-----3.77%-24.95%-18.93%41.02%-3.61%-16.74%

Revenue by Geography

2015201620172018201920202021202220232024
EMEA----849.9M891.4M980.8M1.05B1.12B1.12B
EMEA Growth-----4.88%10.03%7.00%6.40%0.34%
Americas----912.7M929.8M922.8M991.1M1.03B1.07B
Americas Growth-----1.87%-0.75%7.40%3.49%4.36%
Asia Pacific----232.2M243.7M263.2M289.3M272.3M301.2M
Asia Pacific Growth-----4.95%8.00%9.92%-5.88%10.61%
ISRAEL---------72.9M
ISRAEL Growth----------
Americas Principally U S791.57M847.46M871.3M892.43M------
Americas Principally U S Growth-7.06%2.81%2.43%------
Europe595.85M627.52M674.99M717.21M------
Europe Growth-5.32%7.56%6.25%------
Asia / Pacific, Middle East, Africa-266.32M308.37M306.84M------
Asia / Pacific, Middle East, Africa Growth--15.79%-0.50%------
Asia Middle East And Africa242.42M---------
Asia Middle East And Africa Growth----------

Frequently Asked Questions

Valuation & Price

Check Point Software Technologies Ltd. (CHKP) has a price-to-earnings (P/E) ratio of 25.3x. This suggests investors expect higher future growth.

Growth & Financials

Check Point Software Technologies Ltd. (CHKP) reported $2.68B in revenue for fiscal year 2024. This represents a 115% increase from $1.25B in 2011.

Check Point Software Technologies Ltd. (CHKP) grew revenue by 6.2% over the past year. This is steady growth.

Yes, Check Point Software Technologies Ltd. (CHKP) is profitable, generating $1.01B in net income for fiscal year 2024 (33.0% net margin).

Dividend & Returns

Check Point Software Technologies Ltd. (CHKP) has a return on equity (ROE) of 30.1%. This is excellent, indicating efficient use of shareholder capital.

Check Point Software Technologies Ltd. (CHKP) generated $1.18B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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