Formula Systems (1985) Ltd. (IL:FORTY)
TASE:FORTY
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Formula
(TASE:FORTY)
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Rating:67Neutral
Price Target:
53,436.00
▼(-1.04% Downside)
Action:DowngradedDate:11/27/25
The overall stock score of 67 for IL:FORTY reflects a balanced but cautious outlook, driven primarily by solid financial performance with strong cash flow and revenue growth, tempered by low profitability margins and moderate leverage. Technical analysis indicates stable but unremarkable momentum, while valuation metrics suggest the stock is fairly priced with a reasonable dividend yield but a high P/E ratio.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.
Negative Factors
Declining ROE
The decline in ROE suggests potential inefficiencies in generating profits from equity, which could impact investor confidence and long-term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The significant year-over-year revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.
Read all positive factors
Formula (FORTY) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪5.83B
Dividend Yield2.68%
Average Volume (3M)15.46K
Price to Earnings (P/E)47.6
Beta (1Y)1.25
Revenue Growth1.94%
EPS Growth-8.81%
CountryIL
Employees21,900
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)11784.80
Shares Outstanding15,332,667
10 Day Avg. Volume14,660
30 Day Avg. Volume15,457
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)1.89
Price to Sales (P/S)0.47
P/FCF Ratio4.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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 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 generates revenue through multiple channels, including subscription-based models for its software products, where clients pay recurring fees for access to their platforms and updates. Additionally, the company earns income from consulting ...
Formula Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
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 | 683.03M | 684.68M | 643.71M | 622.47M | 563.86M | 447.43M |
| EBITDA | 282.02M | 391.80M | 362.53M | 390.45M | 324.26M | 258.04M |
| Net Income | 71.75M | 79.67M | 64.01M | 201.47M | 141.40M | 112.49M |
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 | 644.21M | 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 Technical Analysis
Negative
54000.00
Price Trends
42020.80
Negative
47433.32
Negative
45274.35
Negative
Market Momentum
-614.48
Negative
42.17
Neutral
23.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:FORTY, the sentiment is Negative. The current price of 54000 is above the 20-day moving average (MA) of 39252.50, above the 50-day MA of 42020.80, and above the 200-day MA of 45274.35, indicating a bearish trend. The MACD of -614.48 indicates Negative momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:FORTY.
Formula Risk Analysis
Formula disclosed 52 risk factors in its most recent earnings report. Formula 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 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ₪5.83B | 47.62 | ― | 2.68% | 1.94% | -8.81% | |
67 Neutral | ₪4.26B | 24.02 | ― | 2.55% | 14.11% | 25.79% | |
62 Neutral | ₪7.95B | 28.90 | ― | 2.41% | 8.82% | 14.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ₪1.71B | 39.35 | ― | ― | 11.90% | 13.57% |
* Technology Sector Average
IL:FORTY
Formula
38,010.00
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22.71%
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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.