Check Point Software Technologies (Check Point Software Technologies) Beneish M-Score

: -2.67 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Check Point Software Technologies's Beneish M-Score or its related term are showing as below:

CHKP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.71 Max: -2.57
Current: -2.67

During the past 13 years, the highest Beneish M-Score of Check Point Software Technologies was -2.57. The lowest was -2.77. And the median was -2.71.

Check Point Software Technologies Beneish M-Score Historical Data

The historical data trend for Check Point Software Technologies's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Check Point Software Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.72

-2.70

-2.74

-2.71

-2.67

Check Point Software Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.71	-2.70	-2.55	-2.54	-2.67

Competitive Comparison

For the Software - Infrastructure subindustry, Check Point Software Technologies's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Check Point Software Technologies Beneish M-Score Distribution

For the Software industry and Technology sector, Check Point Software Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Check Point Software Technologies's Beneish M-Score falls into.

Check Point Software Technologies Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Check Point Software Technologies for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9851

0.528 * 0.9846

0.404 * 1.0195

0.892 * 1.0364

0.115 * 0.8202

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0537

4.679 * -0.034694

0.327 * 1.0472

-2.67

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $658 Mil.
Revenue was 663.5 + 596.3 + 588.7 + 566.2 = $2,415 Mil.
Gross Profit was 582 + 529.2 + 522.8 + 498.1 = $2,132 Mil.
Total Current Assets was $2,258 Mil.
Total Assets was $5,696 Mil.
Property, Plant and Equipment(Net PPE) was $80 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General, & Admin. Expense(SGA) was $864 Mil.
Total Current Liabilities was $1,916 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.
Net Income was 249.2 + 205 + 202 + 184.1 = $840 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 239 + 222.3 + 191 + 385.6 = $1,038 Mil.

Total Receivables was $644 Mil.
Revenue was 638.5 + 577.6 + 571.1 + 542.7 = $2,330 Mil.
Gross Profit was 554.7 + 501.9 + 496.3 + 472.6 = $2,026 Mil.
Total Current Assets was $2,332 Mil.
Total Assets was $5,725 Mil.
Property, Plant and Equipment(Net PPE) was $83 Mil.
Depreciation, Depletion and Amortization(DDA) was $36 Mil.
Selling, General, & Admin. Expense(SGA) was $791 Mil.
Total Current Liabilities was $1,839 Mil.
Long-Term Debt & Capital Lease Obligation was $0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(657.7 / 2414.7)	/	(644.2 / 2329.9)
	=	0.272373	/	0.276493
	=	0.9851

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(2025.5 / 2329.9)	/	(2132.1 / 2414.7)
	=	0.869351	/	0.882967
	=	0.9846

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2257.7 + 80.4) / 5695.5)	/	(1 - (2331.8 + 82.8) / 5724.8)
	=	0.589483	/	0.578221
	=	1.0195

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2414.7	/	2329.9
	=	1.0364

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(36.2 / (36.2 + 82.8))	/	(47.4 / (47.4 + 80.4))
	=	0.304202	/	0.370892
	=	0.8202

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(864.1 / 2414.7)	/	(791.3 / 2329.9)
	=	0.35785	/	0.339628
	=	1.0537

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 1916.1) / 5695.5)	/	((0 + 1839.2) / 5724.8)
	=	0.336423	/	0.321269
	=	1.0472

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(840.3 - 0	-	1037.9)	/	5695.5
	=	-0.034694

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Check Point Software Technologies has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

Check Point Software Technologies Beneish M-Score Related Terms

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Check Point Software Technologies (Check Point Software Technologies) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

CHKPN:Mexico CPW:Germany

Address

5 Shlomo Kaplan Street, Tel Aviv, ISR, 6789159

Website

https://www.checkpoint.com

Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.