165.675 USD
+0.68 (+0.41%)
Last: Jan 27, 2026, 08:00 PM
We assign a fundamental rating of 5 out of 10 to FORTY. FORTY was compared to 88 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
- 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.
- In the past 5 years FORTY always reported a positive cash flow from operatings.
1.2 Ratios
- FORTY's Return On Assets of 2.64% is in line compared to the rest of the industry. FORTY outperforms 55.68% of its industry peers.
- 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 better Return On Invested Capital (11.20%) than 79.55% 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 29.07%.
- 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 of 2.89%. This is comparable to the rest of the industry: FORTY outperforms 54.55% 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 70.45% of its industry peers.
- In the last couple of years the Operating Margin of FORTY has grown nicely.
- With a Gross Margin value of 24.83%, FORTY is not doing good in the industry: 68.18% 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
- 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.
- With a decent Debt to FCF ratio value of 2.18, FORTY is doing good in the industry, outperforming 68.18% of the companies in the same industry.
- 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 65.91% 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 65.91% 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.
- FORTY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
- 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 30.97 indicates a quite expensive valuation of FORTY.
- The rest of the industry has a similar Price/Earnings ratio as FORTY.
- FORTY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FORTY indicates a rather cheap valuation: FORTY is cheaper than 89.77% of the companies listed in the same industry.
- FORTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FORTY is cheaper than 92.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 6.65 |
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)2.06
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- FORTY has a Yearly Dividend Yield of 1.81%.
- FORTY's Dividend Yield is rather good when compared to the industry average which is at 0.45. 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
- 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
FORMULA SYSTEMS 1985-SP ADR / FORTY FAQ
Can you provide the ChartMill fundamental rating for FORMULA SYSTEMS 1985-SP ADR?
ChartMill assigns a fundamental rating of 5 / 10 to FORTY.
Can you provide the valuation status for FORMULA SYSTEMS 1985-SP ADR?
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.
What is the valuation of FORMULA SYSTEMS 1985-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FORMULA SYSTEMS 1985-SP ADR (FORTY) is 30.97 and the Price/Book (PB) ratio is 3.74.