CHKPCheck Point Software Technologies Ltd.
Is the business good?
The checks split: earnings fully cash-backed (1.8×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 37% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CHKP?
Check Point Software Technologies Ltd. keeps 30% of every revenue dollar as operating profit, against 5.8% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 5.8% · fiscal year to FY2025
- Cash conversion
- 1.83×
Cash conversion · 1.38× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.1%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 17%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 44% |
| FY2021 | 42% |
| FY2022 | 38% |
| FY2023 | 37% |
| FY2024 | 34% |
| FY2025 | 30% |
Details›
- Gross marginfiscal year to FY2025
- 87%
- Operating marginfiscal year to FY2025
- 30%
- Net marginfiscal year to FY2025
- 39%
- Free cash flow margin
- 43%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $2.73B
- Free cash flow, trailing twelve months
- $1.17B
- Net income, trailing twelve months
- $1.06B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #11 of 80 by RyuScore