FORMULA SYSTEMS 1985-SP ADR (FORTY) Stock Fundamental Analysis
USA - NASDAQ:FORTY - US3464141056 - ADR
158.5 USD
+10.5 (+7.09%)
Overall FORTY gets a fundamental rating of 5 out of 10. We evaluated FORTY against 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
In the past year FORTY was profitable.
In the past year FORTY had a positive cash flow from operations.
In the past 5 years FORTY has always been profitable.
In the past 5 years FORTY always reported a positive cash flow from operatings.
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.
With a decent Return On Equity value of 11.73%, FORTY is doing good in the industry, outperforming 70.59% of the companies in the same industry.
FORTY has a better Return On Invested Capital (11.20%) than 77.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FORTY is significantly below the industry average of 30.25%.
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
With a Profit Margin value of 2.89%, FORTY perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
In the last couple of years the Profit Margin of FORTY has grown nicely.
With a decent Operating Margin value of 9.81%, FORTY is doing good in the industry, outperforming 69.41% of the companies in the same industry.
In the last couple of years the Operating Margin of FORTY has grown nicely.
FORTY has a worse Gross Margin (24.83%) than 70.59% 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) just above the Cost of Capital (WACC), FORTY is creating some value.
The number of shares outstanding for FORTY remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FORTY has more shares outstanding
FORTY has a better debt/assets ratio than last year.
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.
FORTY's Debt to FCF ratio of 2.18 is fine compared to the rest of the industry. FORTY outperforms 68.24% 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/WACC1.48
WACC7.57%
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.
With a Current ratio value of 1.31, FORTY is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
A Quick Ratio of 1.28 indicates that FORTY should not have too much problems paying its short term obligations.
The Quick ratio of FORTY (1.28) is worse than 63.53% 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.
FORTY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
FORTY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
FORTY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.14% yearly.
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
With a Price/Earnings ratio of 29.63, FORTY can be considered very expensive at the moment.
FORTY's Price/Earnings is on the same level as the industry average.
FORTY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.63 | ||
| Fwd PE | N/A |
4.2 Price Multiples
FORTY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FORTY is cheaper than 89.41% of the companies in the same industry.
92.94% of the companies in the same industry are more expensive than FORTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | 6.36 |
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)1.97
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
FORTY has a Yearly Dividend Yield of 1.56%.
FORTY's Dividend Yield is rather good when compared to the industry average which is at 2.00. FORTY pays more dividend than 87.06% of the companies in the same industry.
FORTY's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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.
FORTY has decreased its dividend 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 (11/12/2025, 8:25:54 PM)
158.5
+10.5 (+7.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change-0.24%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap2.43B
Revenue(TTM)2.81B
Net Income(TTM)79.67M
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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 | 29.63 | ||
| Fwd PE | N/A | ||
| P/S | 0.88 | ||
| P/FCF | 8.22 | ||
| P/OCF | 7.49 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)5.35
EY3.38%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY12.16%
OCF(TTM)21.16
OCFY13.35%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.97
Graham Number73.03
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%
ROICexgc growth 3Y7.37%
ROICexgc 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
WACC7.57%
ROIC/WACC1.48
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%
FORMULA SYSTEMS 1985-SP ADR / FORTY FAQ
What is the fundamental rating for FORTY stock?
ChartMill assigns a fundamental rating of 5 / 10 to FORTY.
What is the valuation status of FORMULA SYSTEMS 1985-SP ADR (FORTY) stock?
ChartMill assigns a valuation rating of 4 / 10 to FORMULA SYSTEMS 1985-SP ADR (FORTY). This can be considered as Fairly Valued.
Can you provide the profitability details for FORMULA SYSTEMS 1985-SP ADR?
FORMULA SYSTEMS 1985-SP ADR (FORTY) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for FORTY stock?
The Price/Earnings (PE) ratio for FORMULA SYSTEMS 1985-SP ADR (FORTY) is 29.63 and the Price/Book (PB) ratio is 3.58.
What is the financial health of FORMULA SYSTEMS 1985-SP ADR (FORTY) stock?
The financial health rating of FORMULA SYSTEMS 1985-SP ADR (FORTY) is 4 / 10.