FORTY Stock Analysis: Formula Systems 1985 | NASDAQ

Information Technology Services | NASDAQ, USA | Market Cap: 1.794m USD | 12M Return: -1.9% | US3464141056 | Charts, Fundamentals & Technical Analysis

Total Rating 42
Safety 77
Buy Signal 0.38
Information Technology Services
Industry Rotation: +21.0
Market Cap: 1.79B
Avg Turnover: 39.8K
Risk 3d forecast
Volatility68.6%
VaR 5th Pctl11.7%
VaR vs Median3.86%
Reward TTM
Sharpe Ratio1.08
Rel. Str. IBD55
Rel. Str. Peer Group28.3 pctl
Character TTM
Beta1.094
Beta Downside0.906
Hurst Exponent0.498
Choppyness69.7%
Drawdowns 3y
Max DD46.37%
CAGR/Max DD0.30
CAGR/Mean DD0.63
EPS (Earnings per Share) EPS (Earnings per Share) of FORTY over the last years for every Quarter: "2021-09": 0.86, "2021-12": 1, "2022-03": 1.06, "2022-06": 2.13, "2022-09": 1.09, "2022-12": 0.99, "2023-03": 1.01, "2023-06": 1.11, "2023-09": 1, "2023-12": 1.0134, "2024-03": 1.1, "2024-06": 1.2, "2024-09": 1.51, "2024-12": 1.28, "2025-03": 1.23, "2025-06": 0.9698, "2025-09": 1.0851, "2025-12": 35.2512, "2026-03": 2.25, "2026-06": 1.47,
EPS CAGR: 135.56%
EPS Trend: 79.2%
Qual. Beats: 0
Revenue Revenue of FORTY over the last years for every Quarter: 2021-09: 586.257, 2021-12: 658.735, 2022-03: 652.131564, 2022-06: 628.461503, 2022-09: 627.682, 2022-12: 633.884, 2023-03: 670.399, 2023-06: 655.374, 2023-09: 654.839, 2023-12: 640.291, 2024-03: 698.401, 2024-06: 667.68, 2024-09: 699.931, 2024-12: 691.499, 2025-03: 616.165183, 2025-06: 759.339665, 2025-09: 699.896164, 2025-12: 712.8009, 2026-03: 738.285, 2026-06: 782.439,
Rev. CAGR: 3.99%
Rev. Trend: 93.4%
Qual. Beats: 0

Warnings

Overextended 1w

Tailwinds

Ep Pivot

Seasonality

Not enough history
Description: FORTY Formula Systems 1985
Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology company in Israel and internationally. The company offers software consulting services; IT solutions and software systems; proprietary software solutions; and IT professional services, including implementation and integration projects of computing and software, outsourcing, software project management and development, IT managed services, operation of a network of training and instruction centers, sale of software and hardware products, and software testing and QA. It also provides cloud and computing infrastructure; packaged software solutions, such as Clicks for medical record information management systems, Hermes Cargo for managing air cargo ground handling, HR Pulse for the creation of HCM solutions, MBS solution for managing TV broadcast channels, Nativ for managing rehabilitation centers, and Mobisale for consumer goods sale and distribution; and product-related services comprising maintenance, customer support, and training. In addition, the company offers software solutions and services for payroll processing, pension administration, workforce management, and human resources, as well as financial processes, accounting workflows, and business operations; employees to vendor management systems workforce management program accounts; and digital advertising and e-commerce platforms, as well as digital services, which include search engine marketing and optimization, website design, management of social media, online business cards, and big data. Further, it is involved in aerial and satellite mapping, geographic data collection and processing, and geographic applications; installation of computer communication infrastructures, announcement and alarm systems, and electronic security systems; and planning and deployment of fiber optics, structured cabling, and coaxial and telephony systems. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.
Headlines to Watch Out For
Piotroski VR-10 (Strict) 4.5
Net Income: 634.6m TTM > 0 and > 6% of Revenue
FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.45 > 1.0
NWC/Revenue: 21.63% < 20% (prev 9.17%; Δ 12.45% < -1%)
CFO/TA 0.11 > 3% & CFO 391.1m > Net Income 634.6m
Net Debt (-35.0m) to EBITDA (394.5m): -0.09 < 3
Current Ratio: 1.48 > 1.5 & < 3
Outstanding Shares: last quarter (15.8m) vs 12m ago 0.51% < -2%
Gross Margin: 19.83% > 18% (prev 23.94%; Δ -4.11% > 0.5%)
Asset Turnover: 87.53% > 50% (prev 86.56%; Δ 0.97% > 0%)
Interest Coverage Ratio: 5.68 > 6 (EBIT TTM 240.8m / Interest Expense TTM 42.4m)
Altman Z'' 3.38
A: 0.18 (Total Current Assets 1.97b - Total Current Liabilities 1.33b) / Total Assets 3.51b
B: 0.32 (Retained Earnings 1.11b / Total Assets 3.51b)
C: 0.07 (EBIT TTM 240.8m / Avg Total Assets 3.35b)
D: 0.65 (Book Value of Equity 1.21b / Total Liabilities 1.85b)
Altman-Z'' = 3.38 = A
Beneish M -2.99
DSRI: 0.90 (Receivables 947.3m/992.8m, Revenue 2.93b/2.77b)
GMI: 1.21 (GM 23.94% / 19.83%)
AQI: 0.79 (AQ_t 0.38 / AQ_t-1 0.48)
SGI: 1.06 (Revenue 2.93b / 2.77b)
TATA: 0.07 (NI 634.6m - CFO 391.1m) / TA 3.51b)
Beneish M = -2.99 (Cap -4..+1) = A
What is the price of FORTY shares?

As of October 27, 2026, the stock is trading at USD 129.90 with a total of 2,044 shares traded. Over the past week, the price has changed by +13.36%, over one month by +12.97%, over three months by +15.53% and over the past year by -1.89%.

Current recommended Stop Loss: 126.00 (which is 3% or 1.3 ATR below the current price).

Is FORTY a buy, sell or hold?

Formula Systems 1985 has no consensus analysts rating.

Formula Systems 1985 (FORTY) - Fundamental Data Overview as of 27 October 2026
Market Cap USD = 1.79b (1.79b USD * 1.0 USD.USD)
P/E Trailing = 24.7892
P/E Forward = 9.2336
P/S = 0.6133
P/B = 1.5156
P/EG = 4.0678
Revenue TTM = 2.93b USD
EBIT TTM = 240.8m USD
EBITDA TTM = 394.5m USD
Long Term Debt = 222.0m USD (from longTermDebt, last quarter)
Short Term Debt = 335.3m USD (from shortTermDebt, last quarter)
Debt = 829.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 159.0m
Net Debt = -35.0m USD (calculated: Debt 829.6m - CCE 864.5m)
Enterprise Value = 1.76b USD (1.79b + Debt 829.6m - CCE 864.5m)
Interest Coverage Ratio = 5.68 (Ebit TTM 240.8m / Interest Expense TTM 42.4m)
EV/FCF = 4.69x (Enterprise Value 1.76b / FCF TTM 374.8m)
FCF Yield = 21.31% (FCF TTM 374.8m / Enterprise Value 1.76b)
FCF Margin = 12.78% (FCF TTM 374.8m / Revenue TTM 2.93b)
Net Margin = 21.63% (Net Income TTM 634.6m / Revenue TTM 2.93b)
Gross Margin = 19.83% ((Revenue TTM 2.93b - Cost of Revenue TTM 2.35b) / Revenue TTM)
Gross Margin QoQ = 20.25% (prev 19.78%)
Tobins Q-Ratio = 0.50 (Enterprise Value 1.76b / Total Assets 3.51b)
Interest Expense / Debt = 5.11% (Interest Expense 42.4m / Debt 829.6m)
Taxrate = 22.89% (48.2m / 210.5m)
NOPAT = 185.7m (EBIT 240.8m * (1 - 22.89%))
Current Ratio = 1.48 (Total Current Assets 1.97b / Total Current Liabilities 1.33b)
Debt / Equity = 0.69 (Debt 829.6m / totalStockholderEquity, last quarter 1.21b)
Debt / EBITDA = -0.09 (Net Debt -35.0m / EBITDA 394.5m)
Debt / FCF = -0.09 (Net Debt -35.0m / FCF TTM 374.8m)
Total Stockholder Equity = 1.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.93% (Net Income 634.6m / Total Assets 3.51b)
RoE = 53.75% (Net Income TTM 634.6m / Total Stockholder Equity 1.18b)
RoCE = 17.17% (EBIT 240.8m / Capital Employed (Equity 1.18b + L.T.Debt 222.0m))
RoIC = 7.86% (NOPAT 185.7m / Invested Capital 2.36b)
WACC = 7.61% (E(1.79b)/V(2.62b) * Re(9.31%) + D(829.6m)/V(2.62b) * Rd(5.11%) * (1-Tc(0.23)))
Discount Rate = 9.31% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 98.04 | Cagr: 0.76%
[DCF] Terminal Value 77.97% ; FCFF base≈343.1m ; Y1≈393.3m ; Y5≈578.8m
[DCF] Fair Price = 570.3 (EV 8.71b - Net Debt -35.0m = Equity 8.75b / Shares 15.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 79.17 | EPS CAGR: 135.6% | SUE: N/A | # QB: 0
Revenue Correlation: 93.42 | Revenue CAGR: 3.99% | SUE: N/A | # QB: 0