FORMULA SYSTEMS 1985-SP ADR (FORTY) Fundamental Analysis & Valuation

NASDAQ:FORTY • US3464141056

128.2 USD
+11.07 (+9.45%)
Last: Mar 4, 2026, 08:27 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This FORTY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, FORTY scores 5 out of 10 in our fundamental rating. FORTY was compared to 87 industry peers in the IT Services industry. While FORTY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FORTY has a decent growth rate and is not valued too expensively. Finally FORTY also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. FORTY Profitability Analysis

1.1 Basic Checks

  • FORTY had positive earnings in the past year.
  • In the past year FORTY had a positive cash flow from operations.
  • Each year in the past 5 years FORTY has been profitable.
  • Each year in the past 5 years FORTY had a positive operating cash flow.
FORTY Yearly Net Income VS EBIT VS OCF VS FCFFORTY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

  • The Return On Assets of FORTY (2.64%) is comparable to the rest of the industry.
  • The Return On Equity of FORTY (11.73%) is better than 71.26% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 11.20%, FORTY belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for FORTY is in line with the industry average of 10.86%.
  • The 3 year average ROIC (10.21%) for FORTY is below the current ROIC(11.20%), indicating increased profibility in the last year.
Industry RankSector 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%
FORTY Yearly ROA, ROE, ROICFORTY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

1.3 Margins

  • With a Profit Margin value of 2.89%, FORTY perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
  • In the last couple of years the Profit Margin of FORTY has grown nicely.
  • With a decent Operating Margin value of 9.81%, FORTY is doing good in the industry, outperforming 68.97% of the companies in the same industry.
  • FORTY's Operating Margin has improved in the last couple of years.
  • FORTY's Gross Margin of 24.83% is on the low side compared to the rest of the industry. FORTY is outperformed by 68.97% of its industry peers.
  • FORTY's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
FORTY Yearly Profit, Operating, Gross MarginsFORTY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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4

2. FORTY Health Analysis

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.
  • 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.
FORTY Yearly Shares OutstandingFORTY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M
FORTY Yearly Total Debt VS Total AssetsFORTY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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 68.97% of the companies in the same industry.
  • FORTY has a Debt/Equity ratio of 0.55. This is a neutral value indicating FORTY is somewhat dependend on debt financing.
  • FORTY's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. FORTY outperforms 44.83% of its industry peers.
  • Although FORTY's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.18
Altman-Z N/A
ROIC/WACC1.56
WACC7.2%
FORTY Yearly LT Debt VS Equity VS FCFFORTY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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.
  • With a Current ratio value of 1.31, FORTY is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
  • 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.
  • Looking at the Quick ratio, with a value of 1.28, FORTY is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.31
Quick Ratio 1.28
FORTY Yearly Current Assets VS Current LiabilitesFORTY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. FORTY Growth Analysis

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.
  • The Revenue has been growing slightly by 6.22% in the past 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.
FORTY Yearly Revenue VS EstimatesFORTY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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4

4. FORTY Valuation Analysis

4.1 Price/Earnings Ratio

  • FORTY is valuated rather expensively with a Price/Earnings ratio of 23.96.
  • FORTY's Price/Earnings is on the same level as the industry average.
  • FORTY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
Industry RankSector Rank
PE 23.96
Fwd PE N/A
FORTY Price Earnings VS Forward Price EarningsFORTY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

  • 91.95% of the companies in the same industry are more expensive than FORTY, based on the Enterprise Value to EBITDA ratio.
  • 93.10% of the companies in the same industry are more expensive than FORTY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.65
EV/EBITDA 5.16
FORTY Per share dataFORTY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

  • The decent profitability rating of FORTY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2YN/A
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. FORTY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.34%, FORTY has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.92, FORTY pays a better dividend. On top of this FORTY pays more dividend than 89.66% of the companies listed in the same industry.
  • FORTY's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.34%

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
FORTY Yearly Dividends per shareFORTY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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
FORTY Yearly Income VS Free CF VS DividendFORTY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
FORTY Dividend Payout.FORTY Dividend Payout, showing the Payout Ratio.FORTY Dividend Payout.PayoutRetained Earnings

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FORTY Fundamentals: All Metrics, Ratios and Statistics

FORMULA SYSTEMS 1985-SP ADR

NASDAQ:FORTY (3/4/2026, 8:27:35 PM)

128.2

+11.07 (+9.45%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-20
Earnings (Next)03-18
Inst Owners31.15%
Inst Owner Change0.09%
Ins Owners12.1%
Ins Owner ChangeN/A
Market Cap1.97B
Revenue(TTM)2.81B
Net Income(TTM)79.67M
Analysts0
Price TargetN/A
Short Float %0%
Short Ratio0.1
Dividend
Industry RankSector Rank
Dividend Yield 2.34%
Yearly Dividend1.23
Dividend Growth(5Y)7.28%
DP23.61%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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 RankSector Rank
PE 23.96
Fwd PE N/A
P/S 0.71
P/FCF 6.65
P/OCF 6.06
P/B 2.89
P/tB N/A
EV/EBITDA 5.16
EPS(TTM)5.35
EY4.17%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)19.27
FCFY15.03%
OCF(TTM)21.16
OCFY16.51%
SpS179.85
BVpS44.31
TBVpS-33.45
PEG (NY)N/A
PEG (5Y)1.6
Graham Number73.03
Profitability
Industry RankSector 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 RankSector 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
WACC7.2%
ROIC/WACC1.56
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

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 7 / 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 23.96 and the Price/Book (PB) ratio is 2.89.