FORTY

BEARISH

$124.45 Live

Formula Systems (1985) Ltd. · NASDAQ

$84.52 52W Range $190.56

FORTY Formula Systems (1985) Ltd. - Fundamental Analysis

BEARISH

Console Chart News

FORTY Stock | Fundamental Analysis & Investment Insights

NASDAQ • Technology • Information Technology Services

Current Price Live

$124.45

52W High

$190.56

52W Low

$84.52

Overview AI Snowflake Price Valuation Profitability Growth Health Statements Peers

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 10, 2026

Market cap

$1.91B

P/E

54.11

ROE

6.9%

Profit margin

23.1%

Debt/Equity

0.33

Dividend yield

1.98%

AI Analysis

AI-powered fundamental assessment

Confidence

85%

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.

Key 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

Healthy current ratio (1.63) providing short-term liquidity

Positive long-term 5-year price appreciation (+46.6%)

Key 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

Extreme earnings volatility with recent Q/Q EPS growth of -2333.3%

Strongly bearish technical trend (0/100)

AI Fair Value Estimate

Based on comprehensive analysis

$67.86

-45.5% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall

Weak

Value

Future

Past

Health

Dividend

AI Verdict

Underperform

Key drivers: Severe valuation gap, Poor Piotroski health score, Unsustainable dividend policy, Stagnant revenue growth

Confidence

90%

Value

25/100

Ref P/E 54.11, Graham Number $67.88

Positives

Low P/S ratio

Watchpoints

P/E of 54.11 is high for 2.4% revenue growth
Price is ~83% above Graham Number

Future

30/100

Ref Growth rates

Positives

Recent Q/Q revenue growth of 26.9%

Watchpoints

YoY revenue growth is negligible (2.4%)
Extreme EPS instability

Past

55/100

Ref Historical trends

Positives

Strong 3Y and 5Y returns

Watchpoints

Negative 6M performance (-16.8%)
Poor earnings surprise track record

Health

20/100

Ref Piotroski F-Score

Positives

Low Debt/Equity

Watchpoints

Piotroski F-Score 2/9 indicates weak financial health

Dividend

15/100

Ref Yield, Payout

Positives

Consistent yield of 1.98%

Watchpoints

Payout ratio of 107.08% is fundamentally unsustainable

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price

$124.45

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for FORTY and closest competitors.

Updated 2026-04-09

Company	5Y	3Y	1Y	6M	1M	1W
FORTY Formula Systems (1985) Ltd. Primary	+46.6%	+103.2%	+45.4%	-16.8%	-2.9%	-0.3%
ALKT Alkami Technology, Inc. Peer	-58.1%	+42.7%	-28.7%	-28.8%	+6.8%	+5.5%
APPN Appian Corporation Peer	-85.0%	-37.5%	-11.8%	-16.9%	+9.3%	-3.9%
AGYS Agilysys, Inc. Peer	+17.1%	-15.7%	-4.1%	-35.3%	-20.0%	-11.6%
DGII Digi International Inc. Peer	+180.4%	+55.5%	+116.1%	+47.1%	+5.2%	+8.3%

FOR

Formula Systems (1985) Ltd.

Primary

+46.6%

+103.2%

+45.4%

-16.8%

-2.9%

-0.3%

ALK

Alkami Technology, Inc.

Peer

-58.1%

+42.7%

-28.7%

-28.8%

+6.8%

+5.5%

APP

Appian Corporation

Peer

-85.0%

-37.5%

-11.8%

-16.9%

+9.3%

-3.9%

AGY

Agilysys, Inc.

Peer

+17.1%

-15.7%

-4.1%

-35.3%

-20.0%

-11.6%

DGI

Digi International Inc.

Peer

+180.4%

+55.5%

+116.1%

+47.1%

+5.2%

+8.3%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

54.11

N/A

1.4

0.73

0.63

6.83

$1.91B

Profitability

Profit margins and return metrics

Profit Margin 23.09%

Operating Margin 5.87%

Gross Margin 19.76%

ROE 6.88%

ROA 3.71%

Growth

Revenue and earnings growth rates

Revenue Growth +2.4%

Earnings Growth +2645.3%

Q/Q Revenue Growth +26.9%

Q/Q Earnings Growth +2666.4%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity

0.33

Low debt

Current Ratio

1.63

Good

Quick Ratio

1.54

Excellent

Cash/Share

$83.64

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue

$0.7B

Gross Margin

19.8%

Op. Margin

5.9%

Net Margin

78.3%

Total Assets

$3.6B

Liabilities

$1.8B

Equity

$1.4B

Debt/Equity

1.32x

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-28

$N/A

2001-02-26

$-0.67

-303.0% surprise

2000-11-20

$0.03

-95.3% surprise

2000-08-17

$0.6

+15.4% surprise

Technology Sector Comparison

Comparing FORTY against 220 companies in the Technology sector (20 bullish, 85 neutral, 115 bearish)

P/E Ratio

54.11

This Stock

57.92

Sector Avg

-6.6% (Discount)

Return on Equity (ROE)

6.88%

This Stock

-28.84%

Sector Avg

-123.8% (Below Avg)

Profit Margin

23.09%

This Stock

-10.0%

Sector Avg

-330.9% (Weaker)

Debt to Equity

0.33

This Stock

0.8

Sector Avg

-58.9% (Less Debt)

Revenue Growth

2.4%

This Stock

11159.19%

Sector Avg

-100.0% (Slower)

Current Ratio

1.63

This Stock

3.76

Sector Avg

-56.7% (Weaker)

Similar Companies

Peer comparison within the same industry

Company	AI Rating	Market Cap	P/E	ROE	Profit Margin	Price
FORTY Formula Systems (1985) Ltd.	BEARISH	$1.91B	54.11	6.9%	23.1%	$124.45
ALKT Alkami Technology, Inc.	BEARISH	$1.91B	-	-13.3%	-10.7%	$18.0	Compare
APPN Appian Corporation	NEUTRAL	$1.89B	1279.5	-%	0.2%	$25.59	Compare
AGYS Agilysys, Inc.	BEARISH	$1.93B	64.01	10.7%	9.8%	$68.49	Compare
DGII Digi International Inc.	NEUTRAL	$1.96B	46.62	6.8%	9.5%	$52.22	Compare

FORTY Formula Systems...

BEARISH

Mkt Cap

$1.9B

P/E

54.1

ROE

6.9%

Price

$124.45

ALKT Alkami Technology, Inc.

Compare with FORTY

APPN Appian Corporation

Compare with FORTY

Compare with FORTY

DGII Digi International Inc.

Compare with FORTY

Past News Coverage

Recent headlines mentioning FORTY from our newsroom.

Newest → oldest

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FORTY

FORTY Formula Systems (1985) Ltd. - Fundamental Analysis

At a glance

AI Analysis

Key Strengths

Key Risks

Performance Snowflake

Stock Price & Analyst Targets

Multi-Horizon Performance vs Peers

Historical Performance Trends

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Valuation Metrics

Profitability

Growth

Financial Health

Financial Statement Flow

Quarterly Earnings History

Technology Sector Comparison

Similar Companies

Past News Coverage

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