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Company Analysis

Formula Systems (1985) Ltd. FORTY

A comprehensive view of key metrics, scores, and financial health for Formula Systems (1985) Ltd.

Overview of Formula Systems (1985) Ltd.

FORTY NMS
Technology Information Technology Services Framework: Software & SaaS Small Cap
Formula Systems (1985) Ltd. (FORTY), is a Small Cap company, in the Information Technology Services industry, last closed at $119.21, about 495.7% undervalued vs fair value, -19.0% 1Y return, ranked 223/780 in sector.
Metrics P/E 4.3× Rev Growth 18.4% ROE 59.7% Gross Margin 19.8% Div Yield 1.07%
USD 119.21
-2.29%
(Delayed)
• Vol 90d: 39.6%
52-Week Range
Market Cap
$1.83B
Enterprise Value
$1.92B
Overall Score
View breakdown
Overall
Growth
Good
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Weak
Growth
Good
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Weak
Completeness: 100%
Confidence: 98%
Updated: Oct 31
Top Beats
No strong beats yet

Quick Facts

Website https://www.formulasystems.com
HQ Or Yehuda
Employees 22,720
Fiscal year Dec 31

Next Events

Earnings Nov 19 Estimated

Fair Value Snapshot

Bear Base Bull
$647
$710
$783
Current: $119.21 +496% vs base

Engine Room Money Flow™

Small Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$2.6B
18.4%%
Gross Profit
$519.2M
16.5%%
Operating Income (GAAP)
$196.4M
7.1%%
Operating Cash Flow
$382.0M
17.7%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
19.8%
Poor

Gross Profit / Revenue — delivery margin (IT services benchmark: 30–50%)

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Where It Leaks

Cash Flow Health healthy
Strong cash conversion with minimal leakage across profit-to-cash-to-value chain.
0
Active Leaks
0/0
Improving
0
High Impact
0
Critical
Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Formula Systems (1985) Ltd.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
63
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Revenue Converts Cleanly to Cash Cash conversion is strong (score 0.74), showing scalable economics.
  • Asset-Light Returns Return profile is strong (score 0.77), supporting a capital-efficient model.

Key risks

  • Contracted Demand Looks Thin Contracted demand signal is weak (score 0.35), limiting evidence of strong subscription stickiness.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
59
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 100% Coverage
Trade-Off Triangle Visualization A ternary plot showing FORTY's balance between Growth (32.4%), Profitability (30.1%), and Safety (37.5%). Growth 32% Safety 38% Profitability 30%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

57th percentile vs peers
58
Key Signals
Rev Growth YoY 18.4% 69p TSR 89.7% 91p EPS Growth YoY 6.54 96p Revenue CAGR 3Y 0.7% 28p Buyback % 0.0% 65p
Strengths
  • Net Debt/EBITDA in top 20% of peers (-2.52, 80th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • TSR in top 20% of peers (89.7%, 91th percentile)
  • EPS Growth YoY in top 20% of peers (6.54, 96th percentile)
Risks

No significant risks identified for this axis.

Profitability

53th percentile vs peers
54
Key Signals
Strengths
Risks
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Safety

67th percentile vs peers
67
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Formula Systems (1985) Ltd..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$710.09
- - -
+495.7% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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