FORMULA SYSTEMS 1985-SP ADR (FORTY) Stock Fundamental Analysis
NASDAQ:FORTY - Nasdaq - US3464141056 - ADR - Currency: USD
Overall FORTY gets a fundamental rating of 5 out of 10. We evaluated FORTY against 82 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. 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.
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.
With a decent Return On Equity value of 11.73%, FORTY is doing good in the industry, outperforming 67.07% of the companies in the same industry.
FORTY has a better Return On Invested Capital (11.20%) than 74.39% 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 21.78%.
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 has a better Operating Margin (9.81%) than 65.85% 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: 69.51% 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
FORTY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FORTY remains at a similar level compared to 1 year ago.
FORTY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FORTY has an improved debt to assets ratio.
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.
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 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/WACC1.52
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.31 indicates that FORTY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.31, FORTY is not doing good in the industry: 63.41% 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 64.63% 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%.
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 20.56, the valuation of FORTY can be described as rather expensive.
63.41% of the companies in the same industry are more expensive than FORTY, based on the Price/Earnings ratio.
FORTY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FORTY is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FORTY is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.71 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
The decent profitability rating of FORTY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
FORTY has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.52, FORTY pays a better dividend. On top of this FORTY pays more dividend than 81.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, FORTY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
23.61% of the earnings are spent on dividend by FORTY. This is a low number and 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 (5/30/2025, 8:00:00 PM)
110
+1.5 (+1.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners36.79%
Inst Owner Change-0.29%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap1.69B
Analysts0
Price TargetN/A
Short Float %0.01%
Short Ratio1.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 | 20.56 | ||
| Fwd PE | N/A | ||
| P/S | 0.61 | ||
| P/FCF | 5.71 | ||
| P/OCF | 5.2 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.44 |
EPS(TTM)5.35
EY4.86%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY17.52%
OCF(TTM)21.16
OCFY19.24%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.37
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
WACC7.35%
ROIC/WACC1.52
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%