Intrinsiqq
Check Point Software Technologies Ltd. logoCheck Point Software Technologies Ltd.CHKP
$137.99-0.08%
Check Point Software Technologies Ltd. logo

Check Point Software Technologies Ltd.

CHKP

$137.99

-$0.11 (-0.08%)

⊜ Compare
ProfitabilityStrong marginsGrowthSteady growthCash FlowStrong conversionValuationAttractively priced
What stands out

Margins and capital returns are both well above average: 30.49% operating margin, ROIC at 17.04%. Consistent with durable pricing power, though that alone doesn't make it a buy.

What's changing

Revenue grew 6.3%, steady but not accelerating. Margins contracted 3.7pp, which offsets some of the top-line progress.

What deserves caution

ROIC dropped from 26.46% to 17.04%, capital efficiency is deteriorating. Operating margin contracted 3.7pp YoY, cost discipline may be slipping.

Valuation context

14.3x earnings, 12.9x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

-26.7%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$15.17B
EPS$9.62
P/E14.34
P/FCF12.93
EV/EBITDA17.16
FCF Yield7.7%
Div. Yield—
Net Debt/FCF-0.4x
52-Week Range
$112.47$204.39

Profitability & Returns

Revenue (TTM)

$2.73B

▲ +6.3% YoY

Net Income (TTM)

$1.06B

▲ +25.0% YoY

Op. Margin

30.49%

▼ -3.7pp YoY

ROIC

17.04%

▼ -9.4pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$1.17B

▲ +14.1% YoY

Op. Cash Flow (TTM)

$1.20B

▲ +14.0% YoY

Net Debt

-$483M

Net Cash Position

Cash & Equiv.

$2.49B

5Y CAGR: +5.7%

5Y CAGR: +0.5%

Continue Research

SourceComputed from the 10-K filed 31 Mar 2026, covering the period ending 31 Dec 2025, as reported to the SEC. Data last refreshed 27 May 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Check Point Software Technologies (CHKP) overvalued?

At a P/E of 14.3 and a price-to-free-cash-flow of 12.9, Check Point Software Technologies (CHKP) trades below a two-stage DCF intrinsic value of about $189.30 per share, so at $137.99 the stock looks undervalued (37.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Check Point Software Technologies scores 69/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Check Point Software Technologies's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $189.30 per share for CHKP, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $141.97. At today's $137.99, that puts the stock about 37.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Check Point Software Technologies a high-quality business?+

Check Point Software Technologies scores 69 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 30.5% operating margin and a 17.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Check Point Software Technologies a good stock to buy right now?+

That depends on valuation and quality together, not either alone. CHKP currently trades below its estimated intrinsic value and scores 69/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Services-Prepackaged Software

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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