178.1 USD
-6.06 (-3.29%)
We assign a fundamental rating of 5 out of 10 to FORTY. FORTY was compared to 87 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. While showing a medium growth rate, FORTY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year FORTY was profitable.
FORTY had a positive operating cash flow in the past year.
FORTY had positive earnings in each of the past 5 years.
Each year in the past 5 years FORTY had a positive operating cash flow.
1.2 Ratios
FORTY has a Return On Assets (2.64%) which is comparable to the rest of the industry.
FORTY has a Return On Equity of 11.73%. This is in the better half of the industry: FORTY outperforms 70.45% of its industry peers.
FORTY has a Return On Invested Capital of 11.20%. This is in the better half of the industry: FORTY outperforms 79.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FORTY is significantly below the industry average of 29.59%.
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
With a Profit Margin value of 2.89%, FORTY perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
FORTY's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.81%, FORTY is doing good in the industry, outperforming 70.45% of the companies in the same industry.
FORTY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.83%, FORTY is doing worse than 68.18% of the companies in the same industry.
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
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 70.45% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that FORTY is somewhat dependend on debt financing.
The Debt to Equity ratio of FORTY (0.55) is comparable to the rest of the industry.
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/WACC1.49
WACC7.53%
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 Current ratio of 1.31. This is in the lower half of the industry: FORTY underperforms 64.77% 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.
The Quick ratio of FORTY (1.28) is worse than 64.77% 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.
FORTY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
Looking at the last year, FORTY shows a small growth in Revenue. The Revenue has grown by 6.22% in the last 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
FORTY is valuated quite expensively with a Price/Earnings ratio of 33.29.
The rest of the industry has a similar Price/Earnings ratio as FORTY.
FORTY is valuated rather expensively when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORTY is valued cheaper than 87.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FORTY indicates a rather cheap valuation: FORTY is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 7.14 |
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)2.22
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
FORTY has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
FORTY's Dividend Yield is rather good when compared to the industry average which is at 0.44. FORTY pays more dividend than 89.77% of the companies in the same industry.
FORTY's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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.
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 (12/19/2025, 8:00:00 PM)
178.1
-6.06 (-3.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner Change-0.24%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap2.73B
Revenue(TTM)2.81B
Net Income(TTM)79.67M
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 | 33.29 | ||
| Fwd PE | N/A | ||
| P/S | 0.99 | ||
| P/FCF | 9.24 | ||
| P/OCF | 8.42 | ||
| P/B | 4.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.14 |
EPS(TTM)5.35
EY3%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY10.82%
OCF(TTM)21.16
OCFY11.88%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)2.22
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
WACC7.53%
ROIC/WACC1.49
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 3 / 10 to FORMULA SYSTEMS 1985-SP ADR (FORTY). This can be considered as Overvalued.
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 33.29 and the Price/Book (PB) ratio is 4.02.
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.