Check Point Software Technologies drew 7 news stories in the 24 hours to 2 November, against a usual 0.6 a day. What the filings add: the trailing operating margin of 30.5% sits below every past reading in the company's own record, which ran from 34.2% to 55.6%.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY25 Q4.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY18 Q4 | 3.3% | 47.7% | 58.8% |
| FY19 Q4 | 4.1% | 44.2% | 54.1% |
| FY20 Q4 | 3.5% | 43.8% | 55.3% |
| FY21 Q4 | 4.9% | 41.9% | 54.8% |
| FY22 Q4 | 7.5% | 38.0% | 46.2% |
| FY23 Q4 | 3.6% | 37.2% | 42.2% |
| FY24 Q4 | 6.2% | 34.2% | 40.1% |
| FY25 Q4 | 6.3% | 30.5% | 43.0% |
The value hinges on growth more than margins
The operating margin has fallen below the company's own historical floor. The trailing operating margin of 30.5% is down 3.7 percentage points from a year earlier, and it is below every past quarterly reading, which have ranged from 34.2% to 55.6%.
The profit jump did not come from the core business. Net income rose 25.0% over the twelve months to $1.1 billion, while revenue grew just 6.3% to $2.7 billion. Operating margin narrowed 3.7 percentage points over the same stretch, so the extra earnings came from items below operating profit, such as one-off, financing or tax items.
The value of the stock hinges on growth more than margins. In our model, growth 5 percentage points lower would cut the value by 22.8%, while a free-cash-flow margin 1 percentage point lower would cut it by just 2.1%.
Buybacks are adding to each share's claim. The average diluted share count fell 3.1% over the year, so profit per share grows faster than profit itself.
The operating margin of 30.5% is below every past reading in the company's own record, which ran from 34.2% to 55.6%
Today's free-cash-flow margin of 43.0% is higher than 12% of the company's own past quarterly readings, which have ranged from 40.1% to 62.7%. The operating margin of 30.5% is below every past reading in that range of 34.2% to 55.6%. The twelve-month revenue growth rate of 6.3% is higher than 44% of past readings, which have ranged from 3.3% to 18.8%.
What Check Point Software Technologies LTD's share price implies against our model
Growth 5 percentage points higher would raise the model value by 29.7%, while growth 5 percentage points lower would cut it by 22.8%. A free-cash-flow margin 1 percentage point lower would lower the value by 2.1%. The model is far more sensitive to the growth assumption than to the margin, which is where the filings show the pressure.
What the filings cannot tell you at Check Point Software Technologies LTD
Our figures run to Q4 2025, from the company's own filings; they cannot confirm, explain or rule out anything in the reports.