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General information

Country: ISRAEL

Sector: Information Technology Services

Formula Systems (1985) Ltd., together with its subsidiaries and affiliates, provides software consulting services and computer-based business solutions. The Company markets its services to the telecommunications, banking, insurance, public utilities, airport, travel industry, and retail sectors.
Website: formulasystems.com



Growth: Pretty weak revenue growth rate 0.9%, there is slowdown compared to average historical growth rates 11.3%. The revenue growth dynamics is moderately stable

Profitability: LTM EBITDA margin is positive, +5.0%. On average the margin is decreasing unsteadily. Gross margin is normal, +25.2%.

Cash Flow Generation: Dividend yield for the last twelve months 0.9%. Free cash flow yield -6.3% (LTM)

Undervaluation: Fundamental value created in LTM (estimate)


Entry Point: Share price is 32.5% higher than minimum and 41.0% lower than maximum for the last 3 years

AI Insight: the companies with similar growth trajectories, EBITDA margin, industries and geography on average are valued 2.0x by EV / Sales multiple , the company can be >100% undervalued

Key Financials (Download financials)

Ticker: FORTY
Share price, USD:  (0.0%)74.15
year average price 70.05  


year start price 60.67 2023-04-21

min close price 55.97 2023-10-23

max close price 83.09 2024-04-08

current price 74.15 2024-04-19
Common stocks: 15 317 700

Dividend Yield:  0.9%
FCF Yield LTM: -6.3%
EV / LTM EBITDA: 16.0x
EV / EBITDA annualized: 20.3x
Last revenue growth (y/y):  0.9%
Last growth of EBITDA (y/y):  0.0%
Historical revenue growth:  11.3%
Historical growth of EBITDA:  48.2%
EV / Sales: 0.8x
Margin (EBITDA LTM / Revenue): 5.0%
Fundamental value created in LTM:
Market Cap ($m): 1 136
Net Debt ($m): 972
EV (Enterprise Value): 2 108
Price to Book: 1.8x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

FCF ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends (Download history)

Share price

Payment USD per share

Multiple and potential

EV / Sales

Potential dynamics

More information for subscribed users:
detailed calculation of
Fundamental value created in LTM

Financial reporting

Income Statement

Property 2023 q4 2023 q3 2023 q2 2023 q1 2022 q4 2022 q3 2022 q2
date 2023-12-31 2023-09-30 2023-06-30 2023-03-31 2022-12-31 2022-09-30 2022-06-30
symbol FORTY FORTY FORTY FORTY FORTY FORTY FORTY
reportedCurrency USD USD USD USD USD USD USD
cik 1M 1M 1M 1M 1M 1M 1M
fillingDate 2023-12-31 2023-09-30 2023-06-30 2023-05-23 2022-12-31 2022-09-30 2022-06-30
acceptedDate 2023-12-29 19:00:00 2023-09-29 20:00:00 2023-06-30 00:00:00 2023-05-23 07:17:49 2022-12-31 00:00:00 2022-09-29 20:00:00 2022-06-29 20:00:00
calendarYear 2023.000 2023.000 2023.000 2023.000 2022.000 2022.000 2022.000
period Q4 Q3 Q2 Q1 Q4 Q3 Q2
revenue 640M 655M 655M 670M 634M 636M 645M
costOfRevenue 479M 495M 494M 508M 469M 483M 496M
grossProfit 161M 160M 161M 162M 165M 153M 149M
grossProfitRatio 0.252 0.244 0.246 0.242 0.261 0.241 0.231
researchAndDevelopmentExpenses 20M 20M 19M 19M 19M 18M 18M
generalAndAdministrativeExpenses 0 0 0 0 0 0 0
sellingAndMarketingExpenses 0 0 0 0 0 0 0
sellingGeneralAndAdministrativeExpenses 81M 82M 82M 82M 86M 78M 76M
otherExpenses 0 0 0 0 0 0 0
operatingExpenses 101M 101M 101M 101M 105M 96M 93M
costAndExpenses 580M 597M 595M 610M 574M 579M 589M
interestIncome 0 0 6M 0 0 0
interestExpense 9M 6M 6M 7M 7M 5M 4M
depreciationAndAmortization -25M 0 12M 27M 27M -25M 0
ebitda 36M 58M 60M 61M 60M 58M 58M
ebitdaratio 0.056 0.089 0.092 0.091 0.095 0.090 0.090
operatingIncome 60M 58M 60M 34M 33M 82M 100M
operatingIncomeRatio 0.094 0.089 0.092 0.051 0.052 0.129 0.154
totalOtherIncomeExpensesNet -9M -6M -6M 19M 20M -29M -4M
incomeBeforeTax 51M 52M 54M 54M 53M 53M 96M
incomeBeforeTaxRatio 0.080 0.079 0.083 0.080 0.084 0.083 0.149
incomeTaxExpense 11M 12M 11M 11M 11M 11M 21M
netIncome 16M 16M 17M 42M 42M 41M 33M
netIncomeRatio 0.025 0.024 0.026 0.063 0.067 0.065 0.051
eps 1.030 1.020 1.120 2.760 2.770 2.710 2.160
epsdiluted 1.010 1.000 1.110 2.730 2.740 2.670 2.120
weightedAverageShsOut 15M 15M 15M 15M 15M 15M 15M
weightedAverageShsOutDil 16M 16M 15M 15M 15M 16M 15M
link Link
finalLink Link

Balance Sheet Statement

Property 2023 q4 2023 q3 2023 q2 2023 q1 2022 q4 2022 q3 2022 q2
date 2023-12-31 2023-09-30 2023-06-30 2023-03-31 2022-12-31 2022-09-30 2022-06-30
symbol FORTY FORTY FORTY FORTY FORTY FORTY FORTY
reportedCurrency USD USD USD USD USD USD USD
cik 1M 1M 1M 1M 1M 1M 1M
fillingDate 2023-12-31 2023-09-30 2023-06-30 2023-05-23 2022-12-31 2022-09-30 2022-06-30
acceptedDate 2023-12-29 19:00:00 2023-09-29 20:00:00 2023-06-30 00:00:00 2023-05-23 07:17:49 2022-12-31 00:00:00 2022-09-29 20:00:00 2022-06-29 20:00:00
calendarYear 2023.000 2023.000 2023.000 2023.000 2022.000 2022.000 2022.000
period Q4 Q3 Q2 Q1 Q4 Q3 Q2
cashAndCashEquivalents 452M 392M 386M 448M 544M 470M 412M
shortTermInvestments 76M 77M 91M 69M 25M 38M 39M
cashAndShortTermInvestments 529M 469M 477M 517M 569M 508M 451M
netReceivables 721M 766M 775M 799M 769M 740M 727M
inventory 42M 37M 39M 39M 35M 36M 37M
otherCurrentAssets 85M 73M 76M 0 0 0 0
totalCurrentAssets 1 376M 1 272M 1 291M 1 354M 1 373M 1 284M 1 215M
propertyPlantEquipmentNet 174M 160M 172M 174M 172M 163M 151M
goodwill 0 0 0 0 926M 0 0
intangibleAssets 0 1 110M 1 150M 0 223M 0 0
goodwillAndIntangibleAssets 1 144M 1 110M 1 150M 1 139M 1 147M 1 135M 1 145M
longTermInvestments 21M 70M 69M 61M 21M 68M 57M
taxAssets 49M 44M 44M 43M 42M 40M 40M
otherNonCurrentAssets 52M 0 0 0 40M 0 0
totalNonCurrentAssets 1 439M 1 385M 1 435M 1 417M 1 422M 1 407M 1 392M
otherAssets 1.000 0 0 0 0 0 0
totalAssets 2 815M 2 657M 2 726M 2 771M 2 795M 2 691M 2 608M
accountPayables 259M 212M 203M 194M 222M 187M 184M
shortTermDebt 265M 276M 268M 288M 272M 276M 298M
taxPayables 0 0 0 0 0 0 0
deferredRevenue 138M 124M 136M 157M 133M 124M 135M
otherCurrentLiabilities 326M 292M 317M 363M 376M 330M 304M
totalCurrentLiabilities 988M 904M 924M 1 002M 1 003M 917M 921M
longTermDebt 320M 418M 463M 460M 501M 496M 369M
deferredRevenueNonCurrent 5M 4M 6M 7M 9M 11M 13M
deferredTaxLiabilitiesNonCurrent 61M 58M 60M 62M 59M 68M 70M
otherNonCurrentLiabilities 133M 45M 45M 49M 46M 42M 73M
totalNonCurrentLiabilities 519M 526M 575M 579M 615M 629M 526M
otherLiabilities 1.000 0 0 0 0 0 0
capitalLeaseObligations 85M 117M 126M 128M 125M 118M 107M
totalLiabilities 1 507M 1 430M 1 499M 1 581M 1 618M 1 546M 1 446M
preferredStock 0 0 0 0 0 0 0
commonStock 0 583M 576M 0 4M 0 0
retainedEarnings 0 0 0 0 419M 0 0
accumulatedOtherComprehensiveIncomeLoss 0 0 0 0 -17M 0 0
othertotalStockholdersEquity 0 0 0 0 145M 548M 0
totalStockholdersEquity 626M 583M 576M 564M 552M 548M 541M
totalEquity 1 308M 1 227M 1 228M 1 190M 552M 548M 541M
totalLiabilitiesAndStockholdersEquity 2 815M 2 657M 2 726M 2 771M 2 795M 2 094M 1 987M
minorityInterest 682M 643M 652M 626M 625M 0 0
totalLiabilitiesAndTotalEquity 2 815M 2 657M 2 726M 2 771M 2 795M 2 094M 1 987M
totalInvestments 97M 147M 161M 130M 45M 106M 96M
totalDebt 670M 694M 731M 748M 773M 771M 667M
netDebt 218M 302M 345M 300M 228M 301M 255M
link Link
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Cash Flow Statement

Property 2023 q3 2023 q2 2021 q4 2020 q4 2020 q3 2020 q2
date 2023-09-30 2023-06-30 2021-12-31 2020-12-31 2020-09-30 2020-06-30
symbol FORTY FORTY FORTY FORTY FORTY FORTY
reportedCurrency USD USD USD USD USD USD
cik 1M 1M 1M 1M 1M 1M
fillingDate 2023-09-30 2023-06-30 2022-05-16 2021-05-17 2020-09-30 2020-06-30
acceptedDate 2023-09-28 20:00:00 2023-06-29 20:00:00 2022-05-16 14:38:51 2021-05-17 16:40:40 2020-09-29 20:00:00 2020-06-29 20:00:00
calendarYear 2023.000 2023.000 2021.000 2020.000 2020.000 2020.000
period Q3 Q2 Q4 Q4 Q3 Q2
netIncome 16M 17M 115M 87M 13M 11M
depreciationAndAmortization 0 0 122M 96M 0 0
deferredIncomeTax 0 0 -8M -6M 0 0
stockBasedCompensation 0 0 15M 8M 0 0
changeInWorkingCapital 0 0 -139M 47M 0 0
accountsReceivables 0 0 -151M 23M 0 0
inventory 0 0 5M -11M 0 0
accountsPayables 0 0 7M 35M 0 0
otherWorkingCapital 0 0 139M -47M 0 0
otherNonCashItems -16M -17M 103M 56M -13M -11M
netCashProvidedByOperatingActivities 0 0 208M 287M 0 0
investmentsInPropertyPlantAndEquipment 0 0 0 0 0 0
acquisitionsNet 0 0 0 0 0 0
purchasesOfInvestments 0 0 0 0 0 0
salesMaturitiesOfInvestments 0 0 0 0 0 0
otherInvestingActivites 0 0 0 0 0 0
netCashUsedForInvestingActivites 0 0 0 0 0 0
debtRepayment 0 0 0 0 0 0
commonStockIssued 0 0 0 0 0 0
commonStockRepurchased 0 0 0 0 0 0
dividendsPaid 0 0 -255 000 -48 000 0 0
otherFinancingActivites 0 0 255 000 48 000 0 0
netCashUsedProvidedByFinancingActivities 0 0 -255 000 -48 000 0 0
effectOfForexChangesOnCash 0 0 0 0 0 0
netChangeInCash 6M -62M 208M 287M 0 0
cashAtEndOfPeriod 392M 386M 208M 287M 0 0
cashAtBeginningOfPeriod 386M 448M 0 0 0 0
operatingCashFlow 0 0 208M 287M 0 0
capitalExpenditure 0 0 0 0 0 0
freeCashFlow 0 0 208M 287M 0 0
link Link Link
finalLink Link Link

Earning call transcript

Press-releases

Show financial reports only

2024-03-19 11:08 ET
Formula Systems Reports Fourth Quarter and Full Year 2023 Financial Results
2023-11-22 12:00 ET
Formula Systems Reports Third Quarter and Nine Months 2023 Financial Results:
2023-08-17 10:45 ET
Formula Systems Reports Second Quarter and First Half 2023 Financial Results
2023-05-23 11:22 ET
Formula Systems Reports First Quarter 2023 Financial Results: Revenues for the First Quarter Increased by 3% Year Over Year to a Record-Breaking $670.4 Million
2023-03-16 12:33 ET
Formula Systems Reports Fourth Quarter and Full Year 2022 Financial Results with Record-Breaking Full Year 2022 Results Recorded Across All Key Financial Indices (Revenues, Gross Profit, Operating Income and Net Income)
2022-11-17 11:24 ET
Formula Systems Reports Third Quarter and Nine Months 2022 Financial Results
2022-08-17 10:18 ET
Formula Systems Reports Second Quarter and First Half 2022 Financial Results: Net Income for the Second Quarter Reached $32.9 Million
2022-05-18 10:12 ET
Formula Systems Reports First Quarter 2022 Financial Results: Record-Breaking Net Income of $16.2 Million
2022-05-16 19:04 ET
Formula Systems Files Annual Report On Form 20-F For The Year Ended December 31, 2021
2022-03-16 11:20 ET
Formula Systems Reports Fourth Quarter and Full Year 2021 Financial Results with Annual Net Income of $54.6 Million
2021-11-18 11:31 ET
Formula Systems Reports Third Quarter 2021 Financial Results
2021-08-19 10:21 ET
Formula Systems Reports Second Quarter 2021 Financial Results: Record-Breaking Results with Double Digit Growth Across All Key Financial Indices
2021-05-20 11:57 ET
Formula Systems Reports First Quarter 2021 Financial Results: Record-Breaking Results With Double Digit Growth Across All Key Financial Indices
2021-03-17 14:46 ET
Formula Systems Reports Fourth Quarter and full year 2020 Financial Results with Annual Net Income of $46.8 million, a 20% growth year over year
2021-02-25 11:37 ET
Sapiens Reports Q4 and Full Year 2020 Financial Results
2020-11-18 11:44 ET
Formula Systems Reports Third Quarter 2020 Financial Results
2020-08-18 10:23 ET
Formula Systems Reports Second Quarter and First Half 2020 Financial Results
2020-06-29 16:35 ET
Formula Systems Files Annual Report On Form 20-F For The Year Ended December 31, 2019
2020-06-08 10:35 ET
Formula Systems Acquires 70% of Liram Financial Software Ltd.
2020-05-28 10:44 ET
Formula Systems Reports First Quarter 2020 Financial Results
2020-03-17 11:30 ET
Formula Systems Reports Fourth Quarter and Full Year 2019 Results
2019-11-19 12:18 ET
Formula Systems Reports Third Quarter 2019 Results
2019-11-19 11:51 ET
Formula Systems Acquires Unique Software Industries Ltd. for Approximately NIS 61 Million
2019-05-06 11:13 ET
Sapiens Reports First Quarter 2019 Financial Results
2019-03-12 10:42 ET
Conversion of Series B Convertible Debentures
2019-03-11 09:26 ET
Publication of Draft Agreement with Trustee for Potential New Israeli Debenture Series
2019-01-07 16:46 ET
Results of Special General Meeting held on January 4, 2019

SEC forms

Show financial reports only

SEC form 6
2024-03-19 06:55 ET
Formula Systems 1985 published news for 2023 q4
SEC form 6
2024-03-19 06:55 ET
Formula Systems 1985 reported for 2023 q4
SEC form 6
2023-11-22 06:08 ET
Formula Systems 1985 reported for 2023 q3
SEC form 6
2023-08-17 06:35 ET
Formula Systems 1985 reported for 2023 q2
SEC form 6
2023-05-23 07:17 ET
Formula Systems 1985 reported for 2023 q1
SEC form 6
2023-05-15 16:07 ET
Formula Systems 1985 published news for 2023 q1
SEC form 6
2023-05-01 08:11 ET
Formula Systems 1985 published news for 2023 q1
SEC form 6
2023-03-16 08:22 ET
Formula Systems 1985 reported for 2022 q4
SEC form 6
2023-01-24 09:40 ET
Formula Systems 1985 published news for 2022 q4
SEC form 6
2023-01-12 10:55 ET
Formula Systems 1985 published news for 2022 q4
SEC form 6
2022-12-08 16:43 ET
Formula Systems 1985 published news for 2022 q3
SEC form 6
2022-11-17 06:10 ET
Formula Systems 1985 published news for 2022 q3
SEC form 6
2022-09-21 07:29 ET
Formula Systems 1985 published news for 2022 q2
SEC form 6
2022-08-25 08:12 ET
Formula Systems 1985 published news for 2022 q2
SEC form 6
2022-08-22 10:27 ET
Formula Systems 1985 published news for 2022 q2
SEC form 6
2022-08-17 06:09 ET
Formula Systems 1985 published news for 2022 q2
SEC form 6
2022-07-21 09:38 ET
Formula Systems 1985 published news for 2022 q2
SEC form 6
2022-05-18 06:04 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-05-17 16:37 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-05-16 15:22 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-05-16 14:38 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-05-11 06:22 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-05-02 06:32 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-04-05 16:51 ET
Formula Systems 1985 published news for 2022 q1
SEC form 6
2022-03-16 07:11 ET
Formula Systems 1985 published news for 2021 q4
SEC form 6
2021-11-18 06:04 ET
Formula Systems 1985 published news for 2021 q3
SEC form 6
2021-08-19 06:13 ET
Formula Systems 1985 published news for 2021 q2
SEC form 6
2021-05-20 06:09 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-05-17 16:55 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-05-17 16:40 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-05-03 13:37 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-04-29 10:59 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-04-08 11:17 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-04-06 12:23 ET
Formula Systems 1985 published news for 2021 q1
SEC form 6
2021-03-17 09:57 ET
Formula Systems 1985 published news for 2020 q4
SEC form 6
2021-02-10 09:37 ET
Formula Systems 1985 published news for 2020 q4
SEC form 6
2020-12-09 09:46 ET
Formula Systems 1985 published news for 2020 q3
SEC form 6
2020-11-18 06:04 ET
Formula Systems 1985 published news for 2020 q3
SEC form 6
2020-11-04 11:29 ET
Formula Systems 1985 published news for 2020 q3
SEC form 6
2020-11-02 08:45 ET
Formula Systems 1985 published news for 2020 q3
SEC form 6
2003-12-11 12:44 ET
Formula Systems 1985 published news for 2003 q3
SEC form 6
2003-12-11 12:44 ET
Formula Systems 1985 published news for 2003 q3