Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services.
Proven track record with mediocre balance sheet.
Share Price & News
How has Formula Systems (1985)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FORT.Y has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: FORT.Y exceeded the US IT industry which returned 16.7% over the past year.
Return vs Market: FORT.Y exceeded the US Market which returned 5.2% over the past year.
Price Volatility Vs. Market
How volatile is Formula Systems (1985)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Formula Systems (1985) undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FORT.Y ($69.57) is trading above our estimate of fair value ($66.73)
Significantly Below Fair Value: FORT.Y is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FORT.Y is good value based on its PE Ratio (25.4x) compared to the IT industry average (29.4x).
PE vs Market: FORT.Y is poor value based on its PE Ratio (25.4x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FORT.Y's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FORT.Y is good value based on its PB Ratio (2.5x) compared to the US IT industry average (3.9x).
How is Formula Systems (1985) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Software industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Formula Systems (1985) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Check out Formula Systems (1985)'s track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
- Explore growth companies in the Software industry.
How has Formula Systems (1985) performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FORT.Y has high quality earnings.
Growing Profit Margin: FORT.Y's current net profit margins (2.4%) are higher than last year (1.8%).
Past Earnings Growth Analysis
Earnings Trend: FORT.Y's earnings have declined by -22.7% per year over the past 5 years.
Accelerating Growth: FORT.Y's earnings growth over the past year (50.9%) exceeds its 5-year average (-22.7% per year).
Earnings vs Industry: FORT.Y earnings growth over the past year (50.9%) exceeded the IT industry 12%.
Return on Equity
High ROE: FORT.Y's Return on Equity (10.7%) is considered low.
How is Formula Systems (1985)'s financial position?
Financial Position Analysis
Short Term Liabilities: FORT.Y's short term assets ($903.5M) exceed its short term liabilities ($656.5M).
Long Term Liabilities: FORT.Y's short term assets ($903.5M) exceed its long term liabilities ($473.4M).
Debt to Equity History and Analysis
Debt Level: FORT.Y's debt to equity ratio (55.9%) is considered high.
Reducing Debt: FORT.Y's debt to equity ratio has increased from 29.1% to 55.9% over the past 5 years.
Debt Coverage: FORT.Y's debt is not well covered by operating cash flow (16.9%).
Interest Coverage: FORT.Y's interest payments on its debt are well covered by EBIT (13.4x coverage).
Inventory Level: FORT.Y has a low level of unsold assets or inventory.
Debt Coverage by Assets: FORT.Y's debt is covered by short term assets (assets are 1.9x debt).
What is Formula Systems (1985)'s current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FORT.Y's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: FORT.Y's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (4.09%).
Stability and Growth of Payments
Stable Dividend: FORT.Y's dividend payments have been volatile in the past 10 years.
Growing Dividend: FORT.Y's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (19.8%), FORT.Y's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Guy Bernstein (51yo)
Mr. Guy Bernstein is the Chief Executive Officer of Magic Software Enterprises Ltd. since April 2010 and has been its Director since January 2007. Mr. Bernstein served as Chairman of the Board at Magic Sof ...
CEO Compensation Analysis
Compensation vs Market: Guy's total compensation ($USD517.00K) is below average for companies of similar size in the US market ($USD2.59M).
Compensation vs Earnings: Guy's compensation has been consistent with company performance over the past year.
|Chief Executive Officer||12.1yrs||US$517.00k||12.89% $131.8m|
|Chief Operational Officer||3.4yrs||US$217.00k||no data|
|Chief Financial Officer||8.3yrs||no data||no data|
Experienced Management: FORT.Y's management team is seasoned and experienced (8.3 years average tenure).
|External Director||6.8yrs||US$65.00k||no data|
|Chairman of the Board||0yrs||US$37.00k||no data|
|External Director||6.8yrs||US$44.00k||no data|
|Director||1.1yrs||no data||no data|
Experienced Board: FORT.Y's board of directors are considered experienced (6.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.
Formula Systems (1985) Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Formula Systems (1985) Ltd.
- Ticker: FORT.Y
- Exchange: NasdaqGS
- Founded: 1985
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: ₪3.530b
- Listing Market Cap: ₪1.022b
- Shares outstanding: 15.29m
- Website: https://www.formulasystems.com
Number of Employees
- Formula Systems (1985) Ltd.
- 5 HaPlada Street
- Or Yehuda
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FORTY||TASE (The Tel-Aviv Stock Exchange)||Yes||Ordinary Shares||IL||ILS||May 1995|
|FORT.Y||NasdaqGS (Nasdaq Global Select)||ADR EACH REP 1 ORD ILS1 LEVELII(BNY)||US||USD||Oct 1997|
|FSY||MUN (Boerse Muenchen)||ADR EACH REP 1 ORD ILS1 LEVELII(BNY)||DE||EUR||Oct 1997|
|FSY||DB (Deutsche Boerse AG)||ADR EACH REP 1 ORD ILS1 LEVELII(BNY)||DE||EUR||Oct 1997|
Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; database and big data services; customer relations management, computer systems management infrastructures, Web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; and professional training courses and advanced professional studies. It also markets and sells computers and peripheral equipment to business customers. In addition, the company offers property and casualty insurance platforms, such as Sapiens, Sapiens CoreSuite, Sapiens IDITSuite, Sapiens PolicyPro, Sapiens BillingPro, Sapiens ClaimsPro, and Sapiens Stingray; life, pension, and annuities platforms, including Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster; reinsurance software solutions comprising Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO; and Sapiens platform for workers’ compensation solutions. Further, it provides financial and compliance solutions that include Sapiens FinancialPro, Sapiens Financial GO, and Sapiens StatementPro; Sapiens DECISION, a decision management platform; and technology-based solutions and digital insurance suites. Additionally, the company offers application development and business process integration platforms; vertical software solutions; vendor of software services and IT outsourcing software services; and professionals in various areas, as well as develops on-premise payroll software solutions. Formula Systems (1985) Ltd. was founded in 1985 and is headquartered in Or Yehuda, Israel.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/28 00:11|
|End of Day Share Price||2020/02/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.