Stock AnalizFormula Systems (1985) Ltd. FORTY
EDP Services · data as of November 13, 2026
Formula Systems (1985) Ltd. (FORTY) is a technology company listed in the US with a market value of about $1.8B. In the twelve months to June 30, 2026 it had revenue of $2.9B and net income of $631M, a net margin of 21.6%.
Its overall Stock Analiz score is 3.2 out of 5 (average). The strongest part is value (4/5); the weakest is future growth (2/5).
Key numbers: a P/E of 24.9, a price to free cash flow of 5.1, 5-year revenue growth of 10% a year, a 5-year average ROIC of 26%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 72% above the current price.
Score: 3.2 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
Checks not passed
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Strong R&D investment or growth above 20%
- ROE above 15%
- Interest covered more than 5 times
- Share count down over 3 years (buybacks)
- 20% to 100% of free cash flow returned to shareholders
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.9B | $2.6B | $2.8B | $2.6B | $2.6B | $2.4B | $1.9B | $1.7B | $1.5B | $1.4B | $1.1B |
| Net income | $631M | $606M | $80M | $64M | $81M | $142M | $114M | $94M | $77M | $10M | $22M |
| Free cash flow | — | $354M | $308M | $278M | $217M | $192M | $271M | $174M | $71M | $72M | $66M |
| EPS (diluted) | $39.85 | $38.42 | $5.20 | $4.18 | $5.31 | $9.26 | $7.44 | $6.16 | $5.05 | $0.68 | $1.47 |
| Net margin | 21.6% | 23.1% | 2.9% | 2.4% | 3.2% | 5.9% | 5.9% | 5.5% | 5.2% | 0.8% | 2.0% |
| ROIC | — | — | 20.5% | 17.5% | 33.7% | 30.4% | 26.5% | 25.4% | 22.7% | 15.1% | 19.1% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
Frequently asked questions
What is Formula Systems (1985)’s P/E ratio?
About 24.9, based on the last twelve months of diluted earnings per share.
Is Formula Systems (1985) stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 72% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Formula Systems (1985) pay a dividend?
Yes. The dividend yield is about 1.69%, and it has paid dividends for 10 years in our data.
Is Formula Systems (1985) a good stock to buy?
We do not give buy or sell advice. Formula Systems (1985) scores 3.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.