Formula (FORTY) AI Stock Analysis

• Market Cap: 6.67B
• Dividend Yield: 3.59%
• Average Volume (3M): 26.46K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.32
• Revenue Growth: 6.03%
• EPS Growth: 13.51%
• Country: IL
• Employees: 21,900
• Sector: Technology
• Sector Strength: 80
• Industry: Information Technology Services
• EPS (TTM): 351.80
• Shares Outstanding: 15,332,667
• 10 Day Avg. Volume: 51,357
• 30 Day Avg. Volume: 26,461
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 11.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: 48,612.00 ▲(11.75% 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.

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 consistent revenue growth, strong operational efficiency with healthy EBIT and EBITDA margins, and robust cash flow generation. Despite a low Net Profit Margin, the company's financial health supports future growth and operational stability.

Income Statement

Formula has demonstrated consistent revenue growth, with a Revenue Growth Rate of 5.2% from 2023 to 2024, and robust profitability metrics such as a Gross Profit Margin of 24.8% and a Net Profit Margin of 2.9% for 2024. EBIT and EBITDA margins are healthy at 9.8% and 14.2% respectively, indicating strong operational efficiency. However, the Net Profit Margin is relatively low, reflecting potential areas for cost management improvement.

Balance Sheet

The company's balance sheet shows a stable financial position with a manageable Debt-to-Equity Ratio of 0.95 and an increasing Return on Equity of 11.7% in 2024, reflecting effective use of equity capital. The Equity Ratio of 22.5% indicates moderate reliance on equity financing. The company maintains a strong liquidity position with significant cash reserves.

Cash Flow

Formula has shown a strong Free Cash Flow Growth Rate of 12.4% from 2023 to 2024, with a healthy Operating Cash Flow to Net Income Ratio of 4.1 and a Free Cash Flow to Net Income Ratio of 3.7 in 2024. These metrics highlight the company's ability to generate cash effectively, providing flexibility for growth and debt servicing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.76B	2.62B	2.57B	2.41B	1.93B
Gross Profit	684.68M	643.71M	622.47M	563.86M	447.43M
EBITDA	391.80M	362.53M	390.45M	324.26M	258.04M
Net Income	79.67M	64.01M	201.47M	141.40M	112.49M
Balance Sheet
Total Assets	3.01B	2.81B	2.79B	2.75B	2.52B
Cash, Cash Equivalents and Short-Term Investments	563.20M	528.17M	569.06M	512.46M	533.15M
Total Debt	644.21M	669.99M	772.67M	712.91M	668.54M
Total Liabilities	1.63B	1.50B	1.62B	1.57B	1.41B
Stockholders Equity	679.34M	625.76M	551.87M	540.96M	502.73M
Cash Flow
Free Cash Flow	295.49M	262.97M	199.82M	177.42M	258.13M
Operating Cash Flow	324.45M	294.97M	239.14M	208.48M	286.94M
Investing Cash Flow	-78.18M	-139.24M	-74.30M	-110.19M	-177.03M
Financing Cash Flow	-184.96M	-243.18M	-70.98M	-114.13M	9.73M

Formula Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 43500 is above the 20-day moving average (MA) of 40937.00, above the 50-day MA of 41271.21, and above the 200-day MA of 34992.55, indicating a bullish trend. The MACD of 173.19 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, 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	6.67B	23.32		3.59%	6.03%	13.51%
MLTM	74 Outperform	2.52B	26.07		―	15.05%	48.85%
MTRX	73 Outperform	7.67B	27.09		2.81%	6.43%	14.81%
ONE	66 Neutral	6.03B	23.90		2.61%	11.47%	26.50%
Sector *	61 Neutral	$35.38B	6.84	-10.99%	1.97%	8.74%	-8.28%