FORMULA SYSTEMS 1985-SP ADR (FORTY) Stock Fundamental Analysis
USA - NASDAQ:FORTY - US3464141056 - ADR
143.49 USD
-6.08 (-4.06%)
Taking everything into account, FORTY scores 5 out of 10 in our fundamental rating. FORTY was compared to 86 industry peers in the IT Services industry. FORTY has only an average score on both its financial health and profitability. 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.
In the past year FORTY had a positive cash flow from operations.
In the past 5 years FORTY has always been profitable.
Each year in the past 5 years FORTY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.64%, FORTY is in line with its industry, outperforming 55.81% 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 72.09% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.20%, FORTY is doing good in the industry, outperforming 76.74% 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 21.42%.
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
FORTY has a Profit Margin (2.89%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FORTY has grown nicely.
FORTY has a better Operating Margin (9.81%) than 68.60% of its industry peers.
FORTY's Operating Margin has improved in the last couple of years.
FORTY has a worse Gross Margin (24.83%) than 72.09% 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
FORTY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FORTY has about the same amount of shares outstanding.
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 70.93% 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.
Looking at the Debt to Equity ratio, with a value of 0.55, FORTY is in line with its industry, outperforming 41.86% of the companies in the same 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/WACC1.5
WACC7.49%
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 63.95% 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.
With a Quick ratio value of 1.28, FORTY is not doing good in the industry: 63.95% of the companies in the same industry are doing better.
| 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
FORTY is valuated quite expensively with a Price/Earnings ratio of 26.82.
Compared to the rest of the industry, the Price/Earnings ratio of FORTY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.31, FORTY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | N/A |
4.2 Price Multiples
91.86% 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 cheaper than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.45 | ||
| EV/EBITDA | 5.77 |
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)1.79
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
FORTY has a Yearly Dividend Yield of 1.32%.
Compared to an average industry Dividend Yield of 2.49, FORTY pays a better dividend. On top of this FORTY pays more dividend than 83.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FORTY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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.
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 (10/15/2025, 8:00:00 PM)
143.49
-6.08 (-4.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners31.21%
Inst Owner Change0%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap2.20B
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 | 26.82 | ||
| Fwd PE | N/A | ||
| P/S | 0.8 | ||
| P/FCF | 7.45 | ||
| P/OCF | 6.78 | ||
| P/B | 3.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.77 |
EPS(TTM)5.35
EY3.73%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY13.43%
OCF(TTM)21.16
OCFY14.75%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.79
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
WACC7.49%
ROIC/WACC1.5
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%