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FORTY vs MXL

FORTY
Formula Systems (1985) Ltd.
BEARISH
Price
$124.45
Market Cap
$1.91B
Sector
Technology
AI Confidence
85%
MXL
MaxLinear, Inc.
NEUTRAL
Price
$21.56
Market Cap
$1.93B
Sector
Technology
AI Confidence
75%

Valuation

P/E Ratio
FORTY
54.11
MXL
--
Forward P/E
FORTY
--
MXL
18.98
P/B Ratio
FORTY
1.4
MXL
4.12
P/S Ratio
FORTY
0.73
MXL
4.13
EV/EBITDA
FORTY
6.83
MXL
-33.17

Profitability

Gross Margin
FORTY
19.76%
MXL
56.84%
Operating Margin
FORTY
5.87%
MXL
-11.06%
Profit Margin
FORTY
23.09%
MXL
-29.23%
ROE
FORTY
6.88%
MXL
-28.23%
ROA
FORTY
3.71%
MXL
-7.7%

Growth

Revenue Growth
FORTY
2.4%
MXL
48.0%
Earnings Growth
FORTY
2645.3%
MXL
--

Financial Health

Debt/Equity
FORTY
0.33
MXL
0.32
Current Ratio
FORTY
1.63
MXL
1.34
Quick Ratio
FORTY
1.54
MXL
0.64

Dividends

Dividend Yield
FORTY
1.98%
MXL
--
Payout Ratio
FORTY
107.08%
MXL
0.0%

AI Verdict

FORTY BEARISH

FORTY exhibits significant financial fragility, highlighted by a weak Piotroski F-Score of 2/9, indicating deteriorating fundamental health. The stock is trading at a substantial premium, with a current price of $124.45 nearly double its Graham Number ($67.88) and Intrinsic Value ($67.85). While the company maintains a low Debt/Equity ratio, the unsustainable dividend payout ratio of 107.08% and a bearish technical trend (0/100) suggest a high risk of price correction. Extreme volatility in earnings growth and stagnant revenue growth (2.4% YoY) further undermine the current valuation.

Strengths
Low Debt/Equity ratio (0.33) indicating manageable leverage
Strong net profit margin of 23.09%
Low Price-to-Sales ratio (0.73) relative to sector
Risks
Severe fundamental weakness indicated by Piotroski F-Score of 2/9
Significant overvaluation relative to Graham and Intrinsic value estimates
Unsustainable dividend payout ratio (107.08%) exceeding earnings
MXL NEUTRAL

MXL exhibits a stark dichotomy between explosive top-line growth and poor fundamental health, evidenced by a weak Piotroski F-Score of 2/9. While the company has achieved a massive 117.8% 1-year price increase and 48% YoY revenue growth, it continues to struggle with negative profit margins (-29.23%) and a low quick ratio (0.64). The stock is currently trading at its 52-week high, leaving little room for immediate upside given that the analyst target price ($21.55) aligns exactly with the current market price. The transition toward positive EPS is promising, but the deterministic health scores suggest significant underlying operational instability.

Strengths
Exceptional YoY revenue growth of 48.00%
Strong gross margins at 56.84%
Positive momentum in earnings surprises (3/4 beats in last year)
Risks
Very weak Piotroski F-Score (2/9) indicating poor financial health
Negative net profit margins (-29.23%) and ROE (-28.23%)
Bearish insider activity with CFO and Director selling shares

Compare Another Pair

FORTY vs MXL: Head-to-Head Comparison

This page compares Formula Systems (1985) Ltd. (FORTY) and MaxLinear, Inc. (MXL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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