Check Point (CHKP) AI Stock Analysis

• Market Cap: $20.40B
• Dividend Yield: N/A
• Average Volume (3M): 918.43K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.49
• Revenue Growth: 6.31%
• EPS Growth: 25.27%
• Country: US
• Employees: 6,669
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 3.94
• Shares Outstanding: 107,354,720
• 10 Day Avg. Volume: 758,528
• 30 Day Avg. Volume: 918,435
• PEG Ratio: 3.82
• Price to Book (P/B): 7.40
• Price to Sales (P/S): 8.05
• P/FCF Ratio: 20.08
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 7.89
• Enterprise Value/Gross Profit: 9.18
• Enterprise Value/Ebitda: 21.13
• 1Y Price Target: $228.23
• Price Target Upside: 22.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $205.00 ▲(9.88% Upside)

The score is driven primarily by very strong financial performance (profitability, cash generation, and a debt-free balance sheet) and a generally positive earnings update with raised revenue guidance and strong billings. These strengths are tempered by weak technicals (broad downtrend and negative momentum) and only moderate valuation support at a ~19.8 P/E.

Positive Factors

Strong Financial Health

Check Point's robust financial health, characterized by strong profit margins and efficient cash flow, ensures long-term stability and resilience against market fluctuations.

AI-Powered Product Growth

The growth in AI-powered firewalls highlights Check Point's innovation and strengthens its competitive position in the cybersecurity market.

Strategic Market Recognition

Recognition in industry reports enhances Check Point's credibility and market positioning, potentially driving future customer acquisition and retention.

Negative Factors

Decline in Support Revenues

A decline in support revenues due to discounting could impact long-term revenue stability and suggests potential pricing pressure in the market.

Foreign Exchange Impacts

Foreign exchange impacts can affect profitability and operational costs, posing a risk to margin sustainability in the long term.

Deal Closure Timing Issues

Timing issues with deal closures can lead to revenue recognition delays, affecting short-term financial performance and forecasting accuracy.

Check Point Business Overview & Revenue Model

Company 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 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.

How the Company Makes Money

Check Point makes money primarily through the sale of its cybersecurity products and services. The company's revenue model includes software and hardware sales, subscription-based services, and support and maintenance contracts. Key revenue streams include product licenses, which provide businesses with access to Check Point's security software, and security subscriptions that offer ongoing protection and updates. Additionally, the company generates income from professional services, such as consulting and training. Strategic partnerships with technology vendors and channel partners also play a significant role in expanding Check Point's market reach and enhancing its distribution capabilities, contributing to its earnings.

Check Point Financial Statement Overview

Summary

Check Point demonstrates strong financial health with robust profit margins, efficient cash flow management, and a solid balance sheet. The company exhibits stable growth and profitability, with low financial risk due to minimal leverage.

Income Statement

Check Point has shown consistent revenue growth, with a revenue growth rate of 6.23% in 2024 compared to 2023. The gross profit margin remains strong at approximately 88.51%, indicating efficient cost management. However, the slight decline in EBIT and EBITDA compared to 2023 suggests a need for monitoring operational efficiencies.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio, reflecting minimal leverage risk. The equity ratio stands at 48.55%, indicating a solid equity position. Return on Equity remains robust at around 30.31%, showcasing effective use of shareholder funds.

Cash Flow

Operating cash flow is robust, reflecting strong cash generation capabilities. The free cash flow to net income ratio is impressive, indicating efficient capital allocation. Although free cash flow growth has slowed compared to prior years, the overall cash position remains strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.56B	2.41B	2.33B	2.17B	2.06B
Gross Profit	2.31B	2.25B	2.13B	2.03B	1.91B	1.84B
EBITDA	1.00B	1.06B	1.02B	920.50M	938.20M	931.30M
Net Income	1.01B	845.70M	840.30M	796.90M	815.60M	846.60M
Balance Sheet
Total Assets	5.70B	5.75B	5.70B	5.72B	5.90B	5.84B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.37B	1.53B	1.64B	1.69B	1.69B
Total Debt	0.00	29.80M	0.00	0.00	0.00	0.00
Total Liabilities	2.62B	2.97B	2.87B	2.80B	2.64B	2.37B
Stockholders Equity	3.08B	2.79B	2.82B	2.93B	3.26B	3.47B
Cash Flow
Free Cash Flow	1.18B	1.03B	1.02B	1.08B	1.19B	1.14B
Operating Cash Flow	1.21B	1.05B	1.04B	1.10B	1.20B	1.16B
Investing Cash Flow	-95.04M	-24.00M	468.70M	-6.40M	-75.30M	-98.20M
Financing Cash Flow	-1.00B	-1.06B	-1.16B	-1.17B	-1.11B	-1.09B

Check Point Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHKP, the sentiment is Negative. The current price of 186.57 is below the 20-day moving average (MA) of 188.08, below the 50-day MA of 190.97, and below the 200-day MA of 204.35, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 67.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHKP.

Check Point Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHKP	77 Outperform	$20.40B	20.45	34.19%	―	6.31%	25.27%
PANW	73 Outperform	$131.65B	121.05	15.33%	―	15.30%	-60.71%
FTNT	71 Outperform	$58.50B	32.25	228.04%	―	14.78%	22.52%
CRWD	66 Neutral	$117.73B	-370.44	-8.88%	―	22.05%	-341.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	$65.29B	-634.53	-8.88%	―	28.06%	-7.44%
ZS	60 Neutral	$34.55B	-826.39	-2.41%	―	23.24%	-8.83%

Check Point Corporate Events

Check Point Completes $2 Billion Convertible Notes Offering

On December 8, 2025, Check Point Software Technologies Ltd. completed a private offering of $2.0 billion in convertible senior notes due 2030, including an additional $250 million exercised by initial purchasers. The proceeds, approximately $1.97 billion after expenses, will support general corporate purposes such as share repurchases and potential mergers, enhancing Check Point’s financial flexibility and strategic positioning in the cybersecurity sector.

The most recent analyst rating on (CHKP) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Check Point stock, see the CHKP Stock Forecast page.

Check Point Software Prices $1.75 Billion Convertible Notes Offering

On December 3, 2025, Check Point Software Technologies announced the pricing of a $1.75 billion private offering of 0.00% convertible senior notes due 2030. The offering was increased from an initial $1.5 billion, with an option for initial purchasers to buy an additional $250 million. The proceeds will support capped call transactions, share repurchases, and general corporate purposes, potentially impacting Check Point’s market position and shareholder value.

The most recent analyst rating on (CHKP) stock is a Hold with a $235.00 price target. To see the full list of analyst forecasts on Check Point stock, see the CHKP Stock Forecast page.

Check Point Software Proposes $1.5 Billion Convertible Notes Offering

On December 2, 2025, Check Point Software Technologies Ltd. announced a proposed private offering of $1.5 billion in 0.00% convertible senior notes due 2030. This move is aimed at raising capital for general corporate purposes, including share repurchases and potential mergers and acquisitions. The offering is expected to enhance Check Point’s financial flexibility and strengthen its market position by potentially reducing share dilution and offsetting cash payments through capped call transactions. The announcement reflects Check Point’s strategic efforts to leverage financial instruments to support its growth and operational objectives.

The most recent analyst rating on (CHKP) stock is a Hold with a $235.00 price target. To see the full list of analyst forecasts on Check Point stock, see the CHKP Stock Forecast page.

Check Point Software Reports Strong Q3 2025 Results and Strategic AI Acquisition

On October 28, 2025, Check Point Software Technologies announced its financial results for the third quarter of 2025, highlighting a strong demand that led to a 20% increase in calculated billings year over year. The company reported total revenues of $678 million, a 7% increase from the previous year, and significant growth in security subscriptions revenues. The acquisition of Lakera, an AI-native security platform, was completed on October 22, 2025, enhancing Check Point’s AI First strategy and positioning it as a leader in next-generation cyber defense. The company also executed a share repurchase program and made a significant investment in its new Tel Aviv campus, reflecting its commitment to growth and innovation.

The most recent analyst rating on (CHKP) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Check Point stock, see the CHKP Stock Forecast page.