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. FORTY has only an average score on both its financial health and profitability. 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.
FORTY had positive earnings in each of the past 5 years.
FORTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FORTY has a Return On Assets of 2.64%. This is comparable to the rest of the industry: FORTY outperforms 54.88% of its industry peers.
FORTY has a better Return On Equity (11.73%) than 68.29% of its industry peers.
The Return On Invested Capital of FORTY (11.20%) is better than 75.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FORTY is significantly below the industry average of 21.60%.
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's Profit Margin of 2.89% is in line compared to the rest of the industry. FORTY outperforms 51.22% of its industry peers.
In the last couple of years the Profit Margin of FORTY has grown nicely.
FORTY's Operating Margin of 9.81% is fine compared to the rest of the industry. FORTY outperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of FORTY has grown nicely.
The Gross Margin of FORTY (24.83%) is worse than 69.51% of its industry peers.
In the last couple of years the Gross Margin of FORTY has grown nicely.
| 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.
Compared to 1 year ago, FORTY has about the same amount of shares outstanding.
FORTY has more shares outstanding than it did 5 years ago.
FORTY has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of FORTY (2.18) is better than 69.51% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that FORTY is somewhat dependend on debt financing.
FORTY has a Debt to Equity ratio (0.55) which is in line with its industry peers.
Although FORTY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.48
WACC7.56%
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.
FORTY's Current ratio of 1.31 is on the low side compared to the rest of the industry. FORTY is outperformed by 64.63% of its industry peers.
A Quick Ratio of 1.28 indicates that FORTY should not have too much problems paying its short term obligations.
FORTY's Quick ratio of 1.28 is on the low side compared to the rest of the industry. FORTY is outperformed by 64.63% 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.
FORTY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
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 23.90, the valuation of FORTY can be described as rather expensive.
FORTY's Price/Earnings ratio is a bit cheaper when compared to the industry. FORTY is cheaper than 62.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. FORTY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | N/A |
4.2 Price Multiples
96.34% of the companies in the same industry are more expensive than FORTY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FORTY is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.64 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
The decent profitability rating of FORTY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
FORTY has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.39, FORTY pays a better dividend. On top of this FORTY pays more dividend than 81.71% of the companies listed in the same industry.
With a Dividend Yield of 1.17, FORTY pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of FORTY is nicely growing with an annual growth rate of 7.28%!
FORTY has paid a dividend for at least 10 years, which is 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
23.61% of the earnings are spent on dividend by FORTY. This is a low number and 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 (7/16/2025, 8:08:00 PM)
127.891
+4.27 (+3.45%)
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 Cap1.96B
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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 | 23.9 | ||
| Fwd PE | N/A | ||
| P/S | 0.71 | ||
| P/FCF | 6.64 | ||
| P/OCF | 6.04 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.15 |
EPS(TTM)5.35
EY4.18%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY15.07%
OCF(TTM)21.16
OCFY16.55%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.59
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
WACC7.56%
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%