Formula Systems Ltd (FORTY)
NASDAQ:FORTY
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Formula Systems
(NASDAQ:FORTY)
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Rating:72Outperform
Price Target:
$183.00
▲(8.98% Upside)
Action:ReiteratedDate:12/03/25
Formula Systems (FORTY) earns an overall score of 72, driven primarily by strong financial performance (score: 73) with robust cash flow and revenue growth, and bullish technical indicators (score: 80) reflecting positive price momentum. However, a high P/E ratio (35.006) raises valuation concerns (score: 55), suggesting caution regarding potential overpricing. Financial health remains the most significant factor, supported by technical strength.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong demand for Formula Systems' offerings, suggesting a robust market position and effective sales strategy.
Negative Factors
Net Income Decline
A decline in net income could indicate challenges in cost management or market pressures, potentially affecting profitability and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The significant revenue growth indicates strong demand for Formula Systems' offerings, suggesting a robust market position and effective sales strategy.
Read all positive factors
Formula Systems (FORTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.94B
Dividend Yield0.8%
Average Volume (3M)413.00
Price to Earnings (P/E)4.2
Beta (1Y)0.66
Revenue Growth6.98%
EPS Growth-4.56%
CountryUS
Employees21,900
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)36.46
Shares Outstanding15,332,667
10 Day Avg. Volume462
30 Day Avg. Volume413
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)2.01
Price to Sales (P/S)0.49
P/FCF Ratio4.61
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda4.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Formula Systems Business Overview & Revenue Model
Company Description
Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, and computer infrastructure and integration solutions worldwide. ...
How the Company Makes Money
Formula Systems generates revenue through multiple streams, primarily by providing tailored software solutions and IT services to its clients. The company charges fees for software development projects, consulting services, and ongoing support and...
Formula Systems Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.89B | 2.76B | 2.62B | 2.57B | 2.41B | 1.93B |
| Gross Profit | 682.39M | 684.03M | 643.71M | 622.47M | 563.86M | 447.43M |
| EBITDA | 276.24M | 386.02M | 371.23M | 396.96M | 332.65M | 264.97M |
| Net Income | 71.75M | 79.67M | 64.01M | 81.39M | 54.59M | 46.78M |
Balance Sheet | ||||||
| Total Assets | 3.33B | 3.01B | 2.81B | 2.79B | 2.75B | 2.52B |
| Cash, Cash Equivalents and Short-Term Investments | 432.08M | 563.20M | 528.17M | 569.06M | 512.46M | 533.15M |
| Total Debt | 638.70M | 689.45M | 669.99M | 772.67M | 712.91M | 668.54M |
| Total Liabilities | 1.75B | 1.63B | 1.50B | 1.62B | 1.57B | 1.41B |
| Stockholders Equity | 777.69M | 679.34M | 625.76M | 551.87M | 540.96M | 502.73M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 295.49M | 262.97M | 199.82M | 177.42M | 258.13M |
| Operating Cash Flow | 0.00 | 324.45M | 294.97M | 239.14M | 208.48M | 286.94M |
| Investing Cash Flow | 0.00 | -78.18M | -139.24M | -74.30M | -110.19M | -177.03M |
| Financing Cash Flow | 0.00 | -184.96M | -243.18M | -70.98M | -114.13M | 9.73M |
Formula Systems Technical Analysis
Neutral
167.92
Price Trends
131.54
Negative
148.90
Negative
140.00
Negative
Market Momentum
-3.02
Positive
48.33
Neutral
45.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORTY, the sentiment is Neutral. The current price of 167.92 is above the 20-day moving average (MA) of 125.50, above the 50-day MA of 131.54, and above the 200-day MA of 140.00, indicating a bearish trend. The MACD of -3.02 indicates Positive momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FORTY.
Formula Systems Risk Analysis
Formula Systems disclosed 52 risk factors in its most recent earnings report. Formula Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Formula Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.94B | 4.18 | 69.72% | 0.80% | 6.98% | -4.56% | |
66 Neutral | $1.43B | 128.39 | 1.67% | ― | 22.71% | -111.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.61B | 18.42 | 6.26% | ― | -4.86% | -25.15% | |
61 Neutral | $2.07B | 17.57 | 4.88% | ― | 5.56% | -42.38% | |
59 Neutral | $2.15B | 6.07 | 13.41% | ― | -4.13% | 2143.48% | |
48 Neutral | $1.26B | -2.86 | -55.55% | ― | 1.84% | -27.74% |
* Technology Sector Average
FORTY
Formula Systems
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50.19%
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Formula Systems Corporate Events
Formula Systems Reports Q3 2025 Financial Results Amid Sapiens Acquisition
Nov 20, 2025
On November 20, 2025, Formula Systems announced its financial results for the third quarter and nine-month period ending September 30, 2025. The company reported a 23.6% increase in quarterly revenues to $696.6 million and a 10.8% rise in operatin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.