FORMULA SYSTEMS 1985-SP ADR (FORTY) Stock Fundamental Analysis
NASDAQ:FORTY - Nasdaq - US3464141056 - ADR - Currency: USD
Taking everything into account, FORTY scores 5 out of 10 in our fundamental rating. FORTY was compared to 82 industry peers in the IT Services industry. Both the profitability and the financial health of FORTY get a neutral evaluation. Nothing too spectacular is happening here. FORTY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FORTY had positive earnings in the past year.
FORTY had a positive operating cash flow in the past year.
Each year in the past 5 years FORTY has been profitable.
FORTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FORTY has a Return On Assets (2.64%) which is in line with its industry peers.
FORTY has a Return On Equity of 11.73%. This is in the better half of the industry: FORTY outperforms 71.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.20%, FORTY is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
FORTY had an Average Return On Invested Capital over the past 3 years of 10.21%. This is significantly below the industry average of 22.31%.
The 3 year average ROIC (10.21%) for FORTY is below the current ROIC(11.20%), indicating increased profibility in the last year.
| 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 has a Profit Margin (2.89%) which is comparable to the rest of the industry.
FORTY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.81%, FORTY is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
In the last couple of years the Operating Margin of FORTY has grown nicely.
FORTY's Gross Margin of 24.83% is on the low side compared to the rest of the industry. FORTY is outperformed by 69.51% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FORTY is destroying value.
The number of shares outstanding for FORTY remains at a similar level compared to 1 year ago.
FORTY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FORTY has an improved debt to assets ratio.
2.2 Solvency
FORTY has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as FORTY would need 2.18 years to pay back of all of its debts.
FORTY has a Debt to FCF ratio of 2.18. This is in the better half of the industry: FORTY outperforms 71.95% of its industry peers.
FORTY has a Debt/Equity ratio of 0.55. This is a neutral value indicating FORTY is somewhat dependend on debt financing.
The Debt to Equity ratio of FORTY (0.55) is comparable to the rest of the 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/WACC0.89
WACC12.59%
2.3 Liquidity
A Current Ratio of 1.31 indicates that FORTY should not have too much problems paying its short term obligations.
FORTY has a worse Current ratio (1.31) than 64.63% of its industry peers.
FORTY has a Quick Ratio of 1.28. This is a normal value and indicates that FORTY is financially healthy and should not expect problems in meeting its short term obligations.
FORTY has a Quick ratio of 1.28. This is in the lower half of the industry: FORTY underperforms 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
FORTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.29%, which is quite impressive.
The Earnings Per Share has been growing by 15.01% on average over the past years. This is quite good.
Looking at the last year, FORTY shows a small growth in Revenue. The Revenue has grown by 6.22% in the last year.
The Revenue has been growing by 10.14% on average over the past years. This is quite good.
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
A Price/Earnings ratio of 21.09 indicates a rather expensive valuation of FORTY.
Compared to the rest of the industry, the Price/Earnings ratio of FORTY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FORTY to the average of the S&P500 Index (26.41), we can say FORTY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORTY is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
FORTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FORTY is cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.85 | ||
| EV/EBITDA | 4.79 |
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)1.41
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, FORTY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.54, FORTY pays a better dividend. On top of this FORTY pays more dividend than 82.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, FORTY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of FORTY grows each year by 7.28%, which is quite nice.
FORTY has paid a dividend for at least 10 years, which is 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.
The dividend of FORTY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.61%
EPS Next 2YN/A
EPS Next 3YN/A
NASDAQ:FORTY (8/12/2025, 10:39:04 AM)
112.807
-6.19 (-5.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners30.85%
Inst Owner Change0%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap1.73B
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 | 21.09 | ||
| Fwd PE | N/A | ||
| P/S | 0.63 | ||
| P/FCF | 5.85 | ||
| P/OCF | 5.33 | ||
| P/B | 2.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.79 |
EPS(TTM)5.35
EY4.74%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY17.08%
OCF(TTM)21.16
OCFY18.76%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.41
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
WACC12.59%
ROIC/WACC0.89
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%