Formula Systems 1985 Ltd FORTY

Information TechnologySoftware & IT ServicesIsrael

Last close 117.27 USD on Nov 1, 2026, −18.2% year to date

Quant rating

Quant rating D Rank 165 of 200 in Information Technology

Growth D 167 of 200
Valuation D 149 of 200
Quality D 149 of 200
Revisions D 165 of 200
Momentum B 40 of 200

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 1.8B
Enterprise value: 2.1B
52-week range: 96.00 – 162.98
3-year range: 52.61 – 162.98
Dividend yield: 1.83%
Beta (5 years): 1.32
Shares outstanding: 15.3M
Next earnings: –

About the company

Formula Systems (1985) Ltd. (Formula) is a global information technology (IT) solutions and services holding company. The Company, through its directly held subsidiary and affiliated companies, is engaged in providing software solutions and services, software product marketing and support, computer infrastructure and integration solutions, and learning and integration. The Company operates through two segments: software services and IT professional services. The software services segment develops markets, sells and supports an application platform, software applications, business and process integration solutions, and related services. The IT professional services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	2,627	2,218	2,110	2,572	2,404	–
Revenue growth	18.4%	5.1%	−18.0%	7.0%	24.3%	6.3%
EPS (basic, normalized)	0.88	0.93	0.74	0.01	0.57	–
EPS growth	−5.4%	25.7%	7,300.0%	−98.2%	–	–
Gross margin	19.8%	20.1%	20.0%	24.2%	23.5%	21.5%
Net margin	1.4%	2.2%	1.7%	3.2%	2.3%	2.1%
ROE	3.6%	7.4%	6.1%	14.9%	10.5%	8.5%

Balance sheet, last quarter
Cash & short-term investments (mil)	865
Current ratio	1.48x
Long-term debt (mil)	335
Net debt (mil)	323
Total equity (mil)	1,206
Net debt / equity	0.27x
Net debt / EBITDA	–

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	2,627	+18.4%	0.8x	–	–	–	0.88	−5.4%	133.3x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	–	–	–	–	–	–	–	–
2027	–	–	–	–	–	–	–	–
2028	–	–	–	–	–	–	–	–

Earnings surprises

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2007	Jun 2007	Sep 2007	Dec 2007	Mar 2008	Jun 2008	Sep 2008	Dec 2008	Mar 2009	Jun 2009
Sales reported (mil)	136	125	125	136	136	–	–	–	–	–
Sales mean (mil)	–	–	–	–	–	–	–	–	–	–
Surprise	–	–	–	–	–	–	–	–	–	–
EPS reported	0.21	0.35	0.14	0.11	0.23	0.32	0.22	0.13	0.26	0.27
EPS mean	–	–	–	–	–	–	–	–	–	–
Surprise	–	–	–	–	–	–	–	–	–	–

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
FORTY Formula Systems 1985 Ltd	1.8B	–	1.4%	1.55x	–	–	–	–
MSFT Microsoft Corporation	3.88T	0.22x	40.3%	8.24x	26.2x	21.9x	16.2x	13.1x
ORCL Oracle Corporation	396.1B	2.81x	26.6%	5.92x	16.0x	11.9x	9.4x	6.6x
IBM International Business Machines Corp	243.7B	2.78x	17.4%	6.86x	20.8x	19.4x	14.6x	13.7x
ADBE Adobe Inc	97.4B	0.06x	30.0%	8.32x	10.2x	9.0x	7.6x	7.1x
QNT Quantinuum Inc	8.8B	–	−622.6%	2.94x	−23.6x	−20.4x	−54.3x	−26.2x
Mean		1.47x	−84.5%	5.64x	9.9x	8.4x	−1.3x	2.9x
Median		1.50x	22.0%	6.39x	16.0x	11.9x	9.4x	7.1x

Technical analysis

1M+7.3%
3M+10.5%
1Y−0.3%
3Y+175.5%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Formula Systems 1985 Ltd, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	2,627	2,218	2,110	2,572	2,404	1,934
Cost of revenue	2,108	1,773	1,689	1,950	1,841	1,486
Gross profit	519	446	421	622	564	447
Selling, general & administrative expenses	241	202	202	318	290	222
Research & development	20.0	18.1	14.5	72.1	65.9	52.6
Depreciation/amortization	71.3	47.5	46.3	–	–	–
Interest expense (income), operating	–	–	–	−44.3	–	–
Unusual expense (income)	–	–	–	–	–	2.2
Other operating expenses	−9.2	−5.4	0	0	0	0
Operating income	196	183	158	277	208	171
Net interest income (expense)	−30.1	−16.2	−17.8	−13.4	−15.6	−20.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−19.8	−8.3	−7.0	−6.5	−8.4	−6.9
Net income before taxes	146	159	133	257	184	144
Provision for taxes	40.5	38.8	31.8	55.2	42.6	31.3
Minority interest	−73.1	−73.6	−66.5	−118	−87.3	−67.2
Equity in affiliates	3.7	2.1	0.8	−1.8	0.5	1.5
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	36.5	48.5	35.7	81.4	54.6	46.8
Extraordinary items	570	31.1	28.3	–	–	–
Net income	606	79.7	64.0	81.4	54.6	46.8
EBIT, normalized	196	183	158	232	208	173
EBITDA, normalized	349	299	280	348	330	268
Basic EPS, normalized	0.88	0.93	0.74	0.01	0.57	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Formula Systems 1985 Ltd, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	1,280	563	528	569	512	533
Receivables	774	803	721	703	696	520
Total inventory	30.2	30.7	42.0	35.2	21.2	24.0
Prepaid expenses	80.6	89.9	84.7	64.5	72.1	83.8
Other current assets	0	0	0	0	0	0
Total current assets	2,166	1,487	1,376	1,371	1,302	1,161
Property, plant & equipment	193	208	174	172	173	174
Goodwill	646	975	937	926	933	872
Intangibles	148	217	207	223	242	222
Long-term investments	404	93.8	72.8	59.7	28.9	28.3
Note receivable	–	–	–	–	–	–
Other long-term assets	26.9	33.8	46.9	42.0	70.0	62.6
Total assets	3,583	3,015	2,813	2,794	2,749	2,520
Liabilities
Accounts payable	368	296	259	222	206	153
Payable/accrued	–	–	–	–	–	–
Accrued expenses	236	235	209	201	208	190
Short-term debt	119	89.3	66.4	70.1	86.5	43.8
Current portion of long-term debt	178	185	197	202	179	150
Other current liabilities	429	334	255	306	268	242
Total current liabilities	1,330	1,138	986	1,001	948	780
Long-term debt	295	370	407	500	447	475
Minority interest	486	741	704	637	671	634
Other liabilities	119	86.1	89.8	104	142	129
Total liabilities	2,230	2,336	2,187	2,242	2,208	2,017
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	4.4	4.4	4.4	4.3	4.3	4.3
Additional paid-in capital	166	153	157	145	153	149
Retained earnings (accumulated deficit)	1,106	536	475	419	358	324
Treasury stock	−0.3	−0.3	−0.3	−0.3	−0.3	−0.3
Other equity	77.3	−13.4	−11.0	−17.0	25.5	25.5
Total equity	1,353	679	626	552	541	503
Total liabilities & shareholders' equity	3,583	3,015	2,813	2,794	2,749	2,520

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Formula Systems 1985 Ltd, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	669	194	166	200	142	114
Depreciation, depletion & amortization	153	115	122	115	122	95.5
Deferred taxes	−8.3	−12.4	−8.3	−18.1	−8.0	−6.3
Non-cash items	−537	6.5	15.1	−36.4	21.4	12.6
Changes in working capital	105	21.1	0.6	−21.3	−69.1	71.2
Cash from operations	382	324	295	239	208	287
Investing activities
Capital expenditures	−27.9	−29.0	−32.0	−39.3	−31.1	−28.8
Other investing cash flows	592	−49.2	−107	−35.0	−79.1	−148
Cash from investing	564	−78.2	−139	−74.3	−110	−177
Financing activities
Financing cash flow items	−109	−74.6	−72.1	−113	−64.7	−46.8
Cash dividends paid	−28.7	−18.8	−9.9	−21.8	−22.1	−14.9
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−86.0	−91.5	−161	64.2	−27.4	71.5
Cash from financing	−223	−185	−243	−71.0	−114	9.7
Foreign exchange effects	49.7	−5.5	−5.0	−34.9	−0.4	13.3
Net change in cash	772	55.9	−92.4	59.0	−16.3	133
Free cash flow	354	295	263	200	177	258

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.