FORMULA SYSTEMS 1985-SP ADR (FORTY) Stock Fundamental Analysis
NASDAQ:FORTY - US3464141056 - ADR
129.96 USD
+0.83 (+0.64%)
Taking everything into account, FORTY scores 5 out of 10 in our fundamental rating. FORTY was compared to 85 industry peers in the IT Services industry. FORTY has an average financial health and profitability rating. FORTY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FORTY had positive earnings in the past year.
In the past year FORTY had a positive cash flow from operations.
In the past 5 years FORTY has always been profitable.
FORTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.64%, FORTY perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
FORTY has a Return On Equity of 11.73%. This is in the better half of the industry: FORTY outperforms 71.76% of its industry peers.
With a decent Return On Invested Capital value of 11.20%, FORTY is doing good in the industry, outperforming 76.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FORTY is significantly below the industry average of 21.77%.
The last Return On Invested Capital (11.20%) for FORTY is above the 3 year average (10.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 11.73% | ||
| ROIC | 11.2% |
ROA(3y)2.61%
ROA(5y)2.34%
ROE(3y)12.24%
ROE(5y)11.22%
ROIC(3y)10.21%
ROIC(5y)9.34%
1.3 Margins
FORTY's Profit Margin of 2.89% is in line compared to the rest of the industry. FORTY outperforms 52.94% of its industry peers.
In the last couple of years the Profit Margin of FORTY has grown nicely.
FORTY has a better Operating Margin (9.81%) than 68.24% of its industry peers.
FORTY's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.83%, FORTY is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
FORTY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 2.89% | ||
| GM | 24.83% |
OM growth 3Y4.28%
OM growth 5Y3.8%
PM growth 3Y8.37%
PM growth 5Y4.83%
GM growth 3Y1.92%
GM growth 5Y1.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FORTY is still creating some value.
FORTY has about the same amout of shares outstanding than it did 1 year ago.
FORTY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FORTY has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of FORTY is 2.18, which is a good value as it means it would take FORTY, 2.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.18, FORTY is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that FORTY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, FORTY is in line with its industry, outperforming 42.35% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for FORTY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.52
WACC7.39%
2.3 Liquidity
FORTY has a Current Ratio of 1.31. This is a normal value and indicates that FORTY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.31, FORTY is doing worse than 65.88% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that FORTY should not have too much problems paying its short term obligations.
FORTY has a worse Quick ratio (1.28) than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.29% over the past year.
Measured over the past years, FORTY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.01% on average per year.
The Revenue has been growing slightly by 6.22% in the past year.
Measured over the past years, FORTY shows a quite strong growth in Revenue. The Revenue has been growing by 10.14% on average per year.
EPS 1Y (TTM)24.29%
EPS 3Y12.87%
EPS 5Y15.01%
EPS Q2Q%11.82%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y4.67%
Revenue growth 5Y10.14%
Sales Q2Q%8.06%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.29, the valuation of FORTY can be described as rather expensive.
FORTY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.90, FORTY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.29 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORTY is valued cheaper than 94.12% of the companies in the same industry.
FORTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FORTY is cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
FORTY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, FORTY is not a good candidate for dividend investing.
FORTY's Dividend Yield is a higher than the industry average which is at 2.38.
Compared to an average S&P500 Dividend Yield of 2.32, FORTY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of FORTY grows each year by 7.28%, which is quite nice.
FORTY has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FORTY decreased recently.
Dividend Growth(5Y)7.28%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FORTY pays out 23.61% of its income as dividend. This is a sustainable payout ratio.
FORTY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.61%
EPS Next 2YN/A
EPS Next 3YN/A
NASDAQ:FORTY (9/2/2025, 8:04:10 PM)
129.96
+0.83 (+0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners30.85%
Inst Owner Change0.75%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap1.99B
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.23
Dividend Growth(5Y)7.28%
DP23.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.29 | ||
| Fwd PE | N/A | ||
| P/S | 0.72 | ||
| P/FCF | 6.74 | ||
| P/OCF | 6.14 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.23 |
EPS(TTM)5.35
EY4.12%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY14.83%
OCF(TTM)21.16
OCFY16.28%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 11.73% | ||
| ROCE | 14.42% | ||
| ROIC | 11.2% | ||
| ROICexc | 16% | ||
| ROICexgc | 173.57% | ||
| OM | 9.81% | ||
| PM (TTM) | 2.89% | ||
| GM | 24.83% | ||
| FCFM | 10.72% |
ROA(3y)2.61%
ROA(5y)2.34%
ROE(3y)12.24%
ROE(5y)11.22%
ROIC(3y)10.21%
ROIC(5y)9.34%
ROICexc(3y)14.47%
ROICexc(5y)13.18%
ROICexgc(3y)118.48%
ROICexgc(5y)104.43%
ROCE(3y)13.53%
ROCE(5y)12.41%
ROICexcg growth 3Y7.37%
ROICexcg growth 5Y11.27%
ROICexc growth 3Y8.43%
ROICexc growth 5Y8.37%
OM growth 3Y4.28%
OM growth 5Y3.8%
PM growth 3Y8.37%
PM growth 5Y4.83%
GM growth 3Y1.92%
GM growth 5Y1.82%
F-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 25.07% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 10.47 | ||
| Cash Conversion | 84.05% | ||
| Profit Quality | 370.9% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | N/A |
F-Score7
WACC7.39%
ROIC/WACC1.52
Cap/Depr(3y)28.48%
Cap/Depr(5y)28.2%
Cap/Sales(3y)1.27%
Cap/Sales(5y)1.32%
Profit Quality(3y)342.4%
Profit Quality(5y)380.82%
High Growth Momentum
Growth
EPS 1Y (TTM)24.29%
EPS 3Y12.87%
EPS 5Y15.01%
EPS Q2Q%11.82%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.22%
Revenue growth 3Y4.67%
Revenue growth 5Y10.14%
Sales Q2Q%8.06%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.01%
EBIT growth 3Y9.15%
EBIT growth 5Y14.33%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.37%
FCF growth 3Y18.53%
FCF growth 5Y13.13%
OCF growth 1Y9.99%
OCF growth 3Y15.89%
OCF growth 5Y10.6%