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Check Point Software Technologies

Nasdaq:CHKP
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHKP
Nasdaq
$18B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The last earnings update was 32 days ago. More info.


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CHKP Share Price and Events
7 Day Returns
2.6%
NasdaqGS:CHKP
0.1%
US Software
-0.7%
US Market
1 Year Returns
22.1%
NasdaqGS:CHKP
26.8%
US Software
3%
US Market
CHKP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Check Point Software Technologies (CHKP) 2.6% -1.3% -1.6% 22.1% 42% 80.8%
US Software 0.1% 1.9% 9.5% 26.8% 124.5% 157.2%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • CHKP underperformed the Software industry which returned 26.8% over the past year.
  • CHKP outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
CHKP
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Check Point Software Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Check Point Software Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Check Point Software Technologies.

NasdaqGS:CHKP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 32 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CHKP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.153 (1 + (1- 23%) (0%))
1.102
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.102 * 5.96%)
9.3%

Discounted Cash Flow Calculation for NasdaqGS:CHKP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Check Point Software Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CHKP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.3%)
2019 1,053.80 Analyst x14 964.13
2020 1,097.10 Analyst x14 918.33
2021 1,125.35 Analyst x4 861.82
2022 1,018.00 Analyst x1 713.27
2023 1,090.00 Analyst x1 698.73
2024 1,089.85 Est @ -0.01% 639.19
2025 1,098.68 Est @ 0.81% 589.53
2026 1,113.90 Est @ 1.39% 546.84
2027 1,133.83 Est @ 1.79% 509.26
2028 1,157.32 Est @ 2.07% 475.58
Present value of next 10 years cash flows $6,916.69
NasdaqGS:CHKP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,157.32 × (1 + 2.73%) ÷ (9.3% – 2.73%)
$18,094.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $18,094.00 ÷ (1 + 9.3%)10
$7,435.39
NasdaqGS:CHKP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,916.69 + $7,435.39
$14,352.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,352.08 / 152.24
$94.27
NasdaqGS:CHKP Discount to Share Price
Calculation Result
Value per share (USD) From above. $94.27
Current discount Discount to share price of $118.43
= -1 x ($118.43 - $94.27) / $94.27
-25.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Check Point Software Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Check Point Software Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Check Point Software Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CHKP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.23
NasdaqGS:CHKP Share Price ** NasdaqGS (2019-05-17) in USD $118.43
United States of America Software Industry PE Ratio Median Figure of 80 Publicly-Listed Software Companies 55.08x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Check Point Software Technologies.

NasdaqGS:CHKP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CHKP Share Price ÷ EPS (both in USD)

= 118.43 ÷ 5.23

22.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Check Point Software Technologies is good value based on earnings compared to the US Software industry average.
  • Check Point Software Technologies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Check Point Software Technologies's expected growth come at a high price?
Raw Data
NasdaqGS:CHKP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts
4.1%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.2x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:CHKP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.64x ÷ 4.1%

5.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Check Point Software Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Check Point Software Technologies's assets?
Raw Data
NasdaqGS:CHKP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $24.28
NasdaqGS:CHKP Share Price * NasdaqGS (2019-05-17) in USD $118.43
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.83x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:CHKP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CHKP Share Price ÷ Book Value per Share (both in USD)

= 118.43 ÷ 24.28

4.88x

* Primary Listing of Check Point Software Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Check Point Software Technologies is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Check Point Software Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Check Point Software Technologies has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Check Point Software Technologies expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Check Point Software Technologies expected to grow at an attractive rate?
  • Check Point Software Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Check Point Software Technologies's earnings growth is positive but not above the United States of America market average.
  • Check Point Software Technologies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CHKP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CHKP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts 4.1%
NasdaqGS:CHKP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 32 Analysts 3.9%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CHKP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CHKP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,379 1
2022-12-31 2,281 1
2021-12-31 2,155 1,199 908 9
2020-12-31 2,059 1,158 859 32
2019-12-31 1,995 1,120 830 31
NasdaqGS:CHKP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,936 1,090 814
2018-12-31 1,916 1,143 821
2018-09-30 1,897 1,149 822
2018-06-30 1,881 1,160 817
2018-03-31 1,872 1,153 808
2017-12-31 1,855 1,110 803
2017-09-30 1,835 1,045 786
2017-06-30 1,808 999 763
2017-03-31 1,772 954 740
2016-12-31 1,741 949 725
2016-09-30 1,713 982 697
2016-06-30 1,689 996 696

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Check Point Software Technologies's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • Check Point Software Technologies's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CHKP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below

All data from Check Point Software Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CHKP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 6.67 6.87 6.47 2.00
2020-12-31 5.76 6.05 5.57 10.00
2019-12-31 5.38 5.47 5.20 10.00
NasdaqGS:CHKP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.23
2018-12-31 5.24
2018-09-30 5.21
2018-06-30 5.12
2018-03-31 5.02
2017-12-31 4.93
2017-09-30 4.78
2017-06-30 4.59
2017-03-31 4.40
2016-12-31 4.26
2016-09-30 4.05
2016-06-30 3.99

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Check Point Software Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Check Point Software Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Check Point Software Technologies has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Check Point Software Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Check Point Software Technologies's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Check Point Software Technologies's year on year earnings growth rate has been positive over the past 5 years.
  • Check Point Software Technologies's 1-year earnings growth is less than its 5-year average (0.8% vs 5.4%)
  • Check Point Software Technologies's earnings growth has not exceeded the US Software industry average in the past year (0.8% vs 44.8%).
Earnings and Revenue History
Check Point Software Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Check Point Software Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CHKP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,935.98 814.10 607.66 215.79
2018-12-31 1,916.48 821.31 589.80 211.52
2018-09-30 1,896.93 822.36 561.54 204.89
2018-06-30 1,880.73 816.84 545.20 203.58
2018-03-31 1,871.53 807.51 537.46 199.66
2017-12-31 1,854.66 802.92 525.39 192.39
2017-09-30 1,835.36 785.57 533.87 189.42
2017-06-30 1,808.30 762.52 531.70 184.64
2017-03-31 1,772.48 739.98 523.18 182.13
2016-12-31 1,741.30 724.85 508.66 178.37
2016-09-30 1,712.67 697.50 494.16 170.66
2016-06-30 1,688.95 695.59 482.01 163.71
2016-03-31 1,661.53 692.41 467.79 156.09
2015-12-31 1,629.84 685.87 451.79 149.28
2015-09-30 1,592.41 677.05 432.64 143.53
2015-06-30 1,558.92 670.35 413.97 138.64
2015-03-31 1,526.19 667.37 397.76 135.86
2014-12-31 1,495.82 659.57 384.92 133.30
2014-09-30 1,462.25 667.92 373.45 132.07
2014-06-30 1,436.01 666.57 365.27 129.50
2014-03-31 1,413.58 657.93 355.25 125.42
2013-12-31 1,394.11 652.80 348.80 121.76
2013-09-30 1,375.60 632.66 339.47 118.01
2013-06-30 1,363.83 625.36 334.91 116.49
2013-03-31 1,352.31 624.33 329.62 114.38
2012-12-31 1,342.70 620.00 325.09 111.91
2012-09-30 1,330.88 605.83 327.18 109.54
2012-06-30 1,306.83 587.49 323.66 109.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Check Point Software Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Check Point Software Technologies used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • Check Point Software Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Check Point Software Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Check Point Software Technologies has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Check Point Software Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Check Point Software Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Check Point Software Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Check Point Software Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Check Point Software Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Check Point Software Technologies has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Check Point Software Technologies Company Filings, last reported 1 month ago.

NasdaqGS:CHKP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,744.56 0.00 1,758.55
2018-12-31 3,772.39 0.00 1,751.78
2018-09-30 3,632.42 0.00 1,770.16
2018-06-30 3,626.86 0.00 1,681.79
2018-03-31 3,581.42 0.00 1,510.27
2017-12-31 3,600.12 0.00 1,410.73
2017-09-30 3,591.42 0.00 1,510.06
2017-06-30 3,568.23 0.00 1,598.96
2017-03-31 3,560.38 0.00 1,467.89
2016-12-31 3,491.12 0.00 1,372.93
2016-09-30 3,457.55 0.00 1,230.23
2016-06-30 3,473.38 0.00 1,326.83
2016-03-31 3,507.34 0.00 1,371.00
2015-12-31 3,531.87 0.00 1,284.23
2015-09-30 3,515.88 0.00 1,299.12
2015-06-30 3,554.03 0.00 1,227.10
2015-03-31 3,618.19 0.00 1,278.35
2014-12-31 3,637.56 0.00 1,312.46
2014-09-30 3,613.74 0.00 1,239.83
2014-06-30 3,621.91 0.00 1,233.52
2014-03-31 3,633.10 0.00 1,207.22
2013-12-31 3,602.10 0.00 1,166.81
2013-09-30 3,489.50 0.00 1,260.45
2013-06-30 3,416.73 0.00 1,240.51
2013-03-31 3,399.39 0.00 1,385.08
2012-12-31 3,346.31 0.00 1,503.34
2012-09-30 3,309.58 0.00 1,450.27
2012-06-30 3,280.52 0.00 1,371.77
  • Check Point Software Technologies has no debt.
  • Check Point Software Technologies has not taken on any debt in the past 5 years.
  • Check Point Software Technologies has no debt, it does not need to be covered by operating cash flow.
  • Check Point Software Technologies has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Check Point Software Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Check Point Software Technologies has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Check Point Software Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Check Point Software Technologies dividends. Estimated to be 0% next year.
If you bought $2,000 of Check Point Software Technologies shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Check Point Software Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Check Point Software Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CHKP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CHKP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 6.00
2019-12-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Check Point Software Technologies has not reported any payouts.
  • Unable to verify if Check Point Software Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Check Point Software Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Check Point Software Technologies has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Check Point Software Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Check Point Software Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Check Point Software Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Check Point Software Technologies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Check Point Software Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gil Shwed
COMPENSATION $28,800
AGE 49
TENURE AS CEO 25.8 years
CEO Bio

Mr. Gil Shwed is a Co-founder of Check Point Software Technologies Ltd. Mr. Shwed has been Chief Executive Officer of Check Point Software Technologies Ltd. since July 1993 and served as its Executive Chairman from July 1998 to September 2015. He served as President of Check Point Software Technologies Ltd. from 1993 to 2001. He has been an Executive Director of Check Point Software Technologies Ltd. since July 1993. He served as a Director of BackWeb Technologies Ltd. from March 1999 to August 2004. Mr. Shwed is considered the inventor of the modern firewall and authored several patents, such as the Check Point Software Technologies’s Stateful Inspection technology. Mr. Shwed has received numerous accolades for his individual achievements and industry contributions, including an honorary Doctor of Science from the Technion – Israel Institute of Technology, an honorary Doctor of Science from Tel Aviv University, the World Economic Forum’s Global Leader for Tomorrow for his commitment to public affairs and leadership in areas beyond immediate professional interests, and the Academy of Achievement’s Golden Plate Award for his innovative contribution to business and technology. Mr. Shwed is the Chairman of the Board of Trustees of the Youth University of Tel Aviv University. Mr. Shwed is a Tel Aviv University Governor and founder of the University’s Check Point Institute for Information Security. He is also Chairman of the Board of the board of directors of Yeholot Association Founded by the Rashi Foundation whose charter is, among other things, to reduce the dropout rates in high schools. In 2018, he was awarded the prestigious Israel Prize for his contributions to the Israeli technology industry.

CEO Compensation
  • Gil's compensation has been consistent with company performance over the past year.
  • Gil's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Check Point Software Technologies management team in years:

6.1
Average Tenure
47.5
Average Age
  • The average tenure for the Check Point Software Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Gil Shwed

TITLE
Founder
COMPENSATION
$29K
AGE
49
TENURE
25.8 yrs

Tal Payne

TITLE
CFO & COO
COMPENSATION
$772K
AGE
46
TENURE
11.3 yrs

Miryam Steinitz

TITLE
Head of Human Resources
COMPENSATION
$400K

Dan Yerushalmi

TITLE
Chief Customer Officer
COMPENSATION
$557K
AGE
54
TENURE
0.8 yrs

Marius Nacht

TITLE
Co-Founder & Non-Executive Chairman

Kip Meintzer

TITLE
Head of Global Investor Relations

John Slavitt

TITLE
General Counsel

Peter Alexander

TITLE
Chief Marketing Officer
TENURE
0.6 yrs

Ran Vered

TITLE
VP of Finance and Head of Accounting & Taxes
AGE
39
Board of Directors Tenure

Average tenure and age of the Check Point Software Technologies board of directors in years:

13.8
Average Tenure
62
Average Age
  • The average tenure for the Check Point Software Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Marius Nacht

TITLE
Co-Founder & Non-Executive Chairman
TENURE
3.7 yrs

Jerry Ungerman

TITLE
Vice Chairman of the Board
AGE
73
TENURE
14.3 yrs

Gil Shwed

TITLE
Founder
COMPENSATION
$29K
AGE
49
TENURE
25.8 yrs

Irwin Federman

TITLE
Director
AGE
82
TENURE
24.3 yrs

Ray Rothrock

TITLE
Director
AGE
61
TENURE
24.3 yrs

Tal Shavit

TITLE
Director
TENURE
19.3 yrs

Dan Propper

TITLE
Director
AGE
77
TENURE
13.3 yrs

Yoav Chelouche

TITLE
Director
AGE
63
TENURE
13.3 yrs

Guy Gecht

TITLE
Director
AGE
53
TENURE
13.3 yrs

Shai Weiss

TITLE
Director
AGE
50
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Check Point Software Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Check Point Software Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Check Point Software Technologies Ltd. (NASDAQ:CHKP) Worth US$121 Based On Its Intrinsic Value?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Check Point Software Technologies Ltd. … by projecting its future cash flows and then discounting them to today's value. … See our latest analysis for Check Point Software Technologies

Simply Wall St -

Check Point Software Technologies Ltd. (NASDAQ:CHKP) Earns Among The Best Returns In Its Industry

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Do You Know What Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) P/E Ratio Means?

We'll look at Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) P/E ratio and reflect on what it tells us about the company's share price. … Check Point Software Technologies has a P/E ratio of 24.41, based on the last twelve months. … How Do You Calculate Check Point Software Technologies's P/E Ratio

Simply Wall St -

How Do Analysts See Check Point Software Technologies Ltd. (NASDAQ:CHKP) Performing In The Year Ahead?

Based on Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) earnings update in December 2018,. … the consensus outlook from analysts appear somewhat bearish, … with earnings expected to grow by 1.0% in the upcoming year

Simply Wall St -

Update: Check Point Software Technologies Stock Gained 78% In The Last Five Years

To wit, the Check Point Software Technologies share price has climbed 78% in five years, easily topping the market return of 40% (ignoring dividends). … During five years of share price growth, Check Point Software Technologies achieved compound earnings per share (EPS) growth of 9.5% per year. … It might be well worthwhile taking a look at our free report on Check Point Software Technologies's earnings, revenue and cash flow.

Simply Wall St -

Did Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) Recent Earnings Growth Beat The Trend?

In this commentary, I will examine Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) latest earnings update (31 December 2018) and compare these figures against its performance over the past couple of years, as well as how the rest of the software industry performed. … See our latest analysis for Check Point Software Technologies? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.3%, indicating the rate at which CHKP is growing has slowed down.

Simply Wall St -

Will Check Point Software Technologies Ltd.'s (NASDAQ:CHKP) Earnings Grow Over The Next Few Years?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In December 2018, Check Point Software Technologies Ltd.

Simply Wall St -

Is Check Point Software Technologies Ltd. (NASDAQ:CHKP) As Strong As Its Balance Sheet Indicates?

Investors looking for stocks with high market liquidity and zero debt on the balance sheet should consider Check Point Software Technologies Ltd. … With a market valuation of US$17b, CHKP is a safe haven in times of market uncertainty due to its strong balance sheet. … Using the most recent data for CHKP, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

Why You Should Like Check Point Software Technologies Ltd.’s (NASDAQ:CHKP) ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St -

Before Investing In Check Point Software Technologies Ltd. (NASDAQ:CHKP), Consider This

I will take you through Check Point Software Technologies’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Check Point Software Technologies has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … There are two methods I will use to evaluate the quality of Check Point Software Technologies’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Company Info

Description

Check 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 generation mega cyber-attacks across various networks, endpoint, cloud, and mobile; security gateways from platforms for small business and small office locations, high end and high demanding data centers, and perimeter environments; and Check Point SandBlast family for threat prevention and zero-day protections. The company also offers Check Point CloudGuard cloud security product that delivers threat prevention security for enterprise cloud networks, data, and applications; Check Point SandBlast Mobile for mobile security in iOS and Android devices; and Check Point Security Management, which offers security management through a single console that streamlines security operations and provides visibility into policy administration and threat analysis. In addition, 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. It sells its products and services to enterprises, service providers, small and medium sized businesses, and consumers through a network of channel partners, such as distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was founded in 1993 and is headquartered in Tel Aviv, Israel.

Details
Name: Check Point Software Technologies Ltd.
CHKP
Exchange: NasdaqGS
Founded: 1993
$18,029,724,932
152,239,508
Website: http://www.checkpoint.com
Address: Check Point Software Technologies Ltd.
5 Shlomo Kaplan Street,
Tel Aviv,
6789159,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CHKP Ordinary Shares Nasdaq Global Select US USD 28. Jun 1996
DB CPW Ordinary Shares Deutsche Boerse AG DE EUR 28. Jun 1996
WBAG CHKP Ordinary Shares Wiener Boerse AG AT EUR 28. Jun 1996
BMV CHKP N Ordinary Shares Bolsa Mexicana de Valores MX MXN 28. Jun 1996
Number of employees
Current staff
Staff numbers
5,070
Check Point Software Technologies employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:45
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/04/18
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.