The technology of Israel-based IT security company Check Point (CHKP) has received very strong reviews from multiple, well-known third parties, while the company reported impressive first-quarter financial results and has a rock-solid balance sheet.
Also importantly, CHKP’s new CEO and its new partnership could meaningfully boost the performance of its stock over the medium-to-long term.
The Superb Third-Party Reviews of Check Point’s Technology
In April, Check Point was identified by the well-known tech research firm GigaOm” as a Leader and the only Outperformer,” due to the strength of CHKP’s Quantum Security Solutions, the IT security company reported. The Quantum Security products utilize AI, along with “Quantum security gateways and firewalls.” The Quantum products enable companies to manage the security of their remote , on-premise, and cloud assets from a single location, Check Point stated.
GigaOm reported that “Check Point is classified as an Outperformer due to its continual delivery of new features and an aggressive roadmap.” The research firm added that, ” With a strong focus on AI and on increasingly offloading to its hardware ASICs to improve performance, Check Point is positioned to set a strong example for the market.”
Last September, another well-known IT research firm, Frost & Sullivan , identified CHKP as “a Leader” in the email security sector, CHKP reported. According to the IT vendor, Frost & Sullivan views the “50 AI-based engines and impressive threat intelligence capabilities” of Check Point’s ThreatCloudAI tool as being unique in the sector.
“In contrast to numerous competitors, Check Point has validated its AI prowess through impressive statistics that highlight its cutting-edge technology for enhancing email security, ensuring that customers receive the most advanced protection possible,” Frost & Sullivan stated.
And for its part, India-based tech publication ITVoice wrote that “Check Point delivers industry-leading prevention and protection in the AI era with the Hybrid Mesh Network Security Architecture.”
Impressive Q1 Results and a Very Solid Balance Sheet
Last quarter, CHKP’s top line climbed 7% versus the same period a year earlier, while its earnings per share, excluding certain items, advanced 9% year-over-year to $2.21. Most exciting was the 11% YOY surge of its backlog to $2.42 billion.
As of the end of Q1, the firm reported that it had $2.9 billion of cash, and the company had no debt as of the end of the quarter. During Q1, it repurchased 1.5 million of its own shares for $325 million.
CHKP’s high profitability and excellent balance sheet should enable it to continue repurchasing its own stock and significantly improving its business through acquisitions.
A New CEO and a New Partnership
At the end of last year, Nadav Zafrir took over as CHKP’s CEO, replacing founder Gil Shwed, who had been at the helm of the company for three decades.
A longtime venture capitalist whose Israel-based firm focused on cybersecurity, Zafrir developed 17 cybersecurity companies during his ten years at VC fund Team8, where he was a general partner and a founder. His vast contacts in the Israeli cybersecurity world and his understanding of how to grow companies quickly (he likely has a “startup mentality”) may very well make Check Point tremendously successful going forward.
Indeed, Zafrir’s contacts already appear to have paid dividends, as CHKP entered into a partnership with Israel-based cloud security provider Wiz in February. Since Wiz agreed to be acquired by Google for $32 billion in March, the deal between CHKP and Wiz could enable CHKP to obtain very large, new deals with GOOG down the road.
*This article is intended to be informational only; it is not financial advice.
