Check Point Software TechnologiesCHKP +0.82%82 Operating Margin % is 27.69% as of Mar. 2026, which is 35% below its 10-year median of 42.84. GuruFocus rates CHKP with a GF Score™ of 82/100 and a GF Value™ of $204.49 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,818 Software companies, Check Point Software Technologies ranks better than 94.75% on this metric.
Check Point Software Technologies (NAS:CHKP) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Check Point Software Technologies Operating Margin % Related Terms
Check Point Software Technologies Operating Margin % Historical Data
* 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.
Check Point Software Technologies Operating Margin % Chart
CHKP vs NTNX, TOST, GEN: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Check Point Software Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Check Point Software Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Check Point Software Technologies's Operating Margin % falls into.
Check Point Software Technologies Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
Check Point Software Technologies (CHKP) has a Operating Margin % of 27.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Check Point Software Technologies and its competitors. This is 35% below median its historical median of 42.84. Over the past decade, Check Point Software Technologies' Operating Margin % has ranged from 29.78 to 49.81. According to the industry distribution chart, Check Point Software Technologies ranks #148 out of 2818 companies in the Software industry, placing it in the top 5.3%.
Is Check Point Software Technologies' Operating Margin % too high?
Check Point Software Technologies' current Operating Margin % of 27.69% is 35% below median its 10-year median of 42.84. Over the past 10 years, this metric has ranged from a low of 29.78 to a high of 49.81. The Software industry median Operating Margin % is 3.88. Check Point Software Technologies' value of 27.69% is 614.6% above this industry median. Based on the distribution chart, Check Point Software Technologies ranks #148 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Check Point Software Technologies has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Check Point Software Technologies' Operating Margin % compare to NTNX and TOST?
According to the Software industry distribution chart, Check Point Software Technologies ranks #148 out of 2818 companies for Operating Margin %. This places Check Point Software Technologies in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Check Point Software Technologies' value of 27.69% is 614.6% above this benchmark. Historically, Check Point Software Technologies' own Operating Margin % has ranged from 29.78 to 49.81 over the past decade. While the company's 10-year median is 42.84 vs. the industry median of 3.88, Check Point Software Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Check Point Software Technologies's current Operating Margin % of 27.69% is 614.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Check Point Software Technologies and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Check Point Software Technologies's current Operating Margin % is 27.69%, which is 35% below median its own 10-year median of 42.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Check Point Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Check Point Software Technologies (CHKP) is currently considered Significantly Undervalued. The stock's GF Value™ is $204.49, compared to a current price of $124.68 — trading 39% below its estimated fair value. The current Operating Margin % is 27.69%, which is 35% below median its 10-year median of 42.84 and 614.6% above the Software industry median of 3.88. Check Point Software Technologies' overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Check Point Software Technologies (CHKP), the current Operating Margin % is 27.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Check Point Software Technologies (CHKP) Overvalued in 2026?
Based on GuruFocus' analysis, Check Point Software Technologies stock appears to be undervalued.
The current stock price of $124.68 is trading 39% below its estimated GF Value™ of $204.49.
GuruFocus considers Check Point Software Technologies to be Significantly Undervalued.
Key valuation signals for CHKP:
Operating Margin %: 27.69% (35% below median its 10-year median of 42.84)
GF Value™: $204.49 vs. price of $124.68 (39% below fair value)
Industry Position: 614.6% above the Software median (#148 of 2818)
No single metric tells the full story. See the CHKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Check Point Software Technologies Business Description
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.
82GF Score
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