Formula (FORTY) AI Stock Analysis

• Market Cap: 7.09B
• Dividend Yield: 3.29%
• Average Volume (3M): 26.33K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.28
• Revenue Growth: 6.03%
• EPS Growth: 13.51%
• Country: IL
• Employees: 21,900
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): 351.80
• Shares Outstanding: 15,332,667
• 10 Day Avg. Volume: 12,460
• 30 Day Avg. Volume: 26,331
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 48,612.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: 48,612.00 ▲(2.56% Upside)

The overall stock score is driven primarily by strong financial performance, characterized by consistent revenue growth and stable margins. The technical analysis indicates a positive trend, though short-term momentum is mixed. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Formula's ability to expand its market presence and product adoption, supporting long-term business sustainability.

Cash Flow Generation

Strong free cash flow growth indicates efficient cash conversion, providing the company with the flexibility to invest in strategic initiatives and manage debt.

Strategic Partnerships

Strategic partnerships enhance market reach and foster collaborative innovation, strengthening Formula's competitive position and revenue potential.

Negative Factors

Declining ROE

Declining ROE may indicate challenges in generating returns on equity investments, potentially impacting investor confidence and long-term growth prospects.

Net Profit Margin Decline

A declining net profit margin suggests rising costs or pricing pressures, which could affect profitability and operational efficiency over the long term.

Leverage Management

While leverage has improved, maintaining a lower debt-to-equity ratio is crucial for financial stability, especially in a capital-intensive industry like EV infrastructure.

Formula Business Overview & Revenue Model

Company Description

Formula (FORTY) is an innovative technology company specializing in advanced automotive solutions and electric vehicle (EV) infrastructure. Operating within the automotive and renewable energy sectors, Formula focuses on developing cutting-edge software and hardware products that enhance vehicle performance, optimize energy consumption, and support sustainable transportation systems. Its core offerings include smart charging stations, energy management systems, and AI-driven analytics tools designed for both consumers and businesses in the EV market.

How the Company Makes Money

Formula generates revenue through multiple key streams, primarily by selling its proprietary EV charging stations and related hardware to businesses and consumers. The company also earns income from subscription-based software services that provide real-time analytics and energy management solutions to fleet operators and charging network providers. Additionally, Formula has established strategic partnerships with automotive manufacturers and energy companies, which not only enhance its market reach but also create collaborative opportunities for joint product development and co-marketing efforts. These partnerships enable Formula to tap into a broader customer base while benefiting from shared resources and expertise, further solidifying its revenue-generating capabilities.

Formula Financial Statement Overview

Summary

Formula has demonstrated robust financial health with consistent revenue growth, stable margins, and improved leverage. The company has effectively managed its cash flows, supporting its operational and strategic initiatives. While ROE has fluctuated, the overall financial trajectory remains positive, positioning the company well within the Information Technology Services industry.

Income Statement

The company has demonstrated consistent revenue growth, with a notable increase from $1.93 billion in 2020 to $2.76 billion in 2024. Gross profit margin has remained stable, averaging around 24.8% over the years. Net profit margin improved slightly from 3.9% in 2020 to 2.9% in 2024, indicating controlled costs and efficient operations. EBIT and EBITDA margins have shown positive trends, reflecting strong operational performance.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio decreasing from 1.43 in 2020 to 0.95 in 2024, indicating improved leverage management. Return on equity (ROE) has been volatile, peaking at 36.5% in 2022 but declining to 11.7% in 2024. The equity ratio has improved, suggesting a stronger equity base relative to total assets.

Cash Flow

The company has shown strong free cash flow growth, with free cash flow increasing from $159.5 million in 2019 to $295.5 million in 2024. Operating cash flow to net income ratio has been consistently above 1, indicating healthy cash generation relative to net income. Free cash flow to net income ratio also reflects efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.81B	2.76B	2.62B	2.57B	2.41B	1.93B
Gross Profit	701.18M	684.68M	643.71M	622.47M	563.86M	447.43M
EBITDA	284.26M	391.80M	362.53M	390.45M	324.26M	258.04M
Net Income	81.83M	79.67M	64.01M	201.47M	141.40M	112.49M
Balance Sheet
Total Assets	3.05B	3.01B	2.81B	2.79B	2.75B	2.52B
Cash, Cash Equivalents and Short-Term Investments	526.79M	563.20M	528.17M	569.06M	512.46M	533.15M
Total Debt	626.94M	644.21M	669.99M	772.67M	712.91M	668.54M
Total Liabilities	1.67B	1.63B	1.50B	1.62B	1.57B	1.41B
Stockholders Equity	681.02M	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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:FORTY, the sentiment is Positive. The current price of 47400 is above the 20-day moving average (MA) of 43857.00, above the 50-day MA of 42697.79, and above the 200-day MA of 36069.87, indicating a bullish trend. The MACD of 1303.18 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 89.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:FORTY.

Formula Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	76 Outperform	7.09B	24.80		3.29%	6.03%	13.51%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
CMDR	―	1.60B	16.86		3.52%	―	―
MTRX	73 Outperform	7.62B	26.91		2.70%	6.43%	14.81%
MLTM	71 Outperform	2.67B	26.77		―	12.51%	45.01%
ONE	66 Neutral	5.86B	23.23		2.84%	11.47%	26.50%