FORMULA SYSTEMS (1985) LTD (FORTY) Stock Analysis

Price updated 4 days ago · SEC data refreshed 3 days ago ⓘ · Not investment advice

FORMULA SYSTEMS (1985) LTD

FORTY Technology IT Services📄 SEC filings ↗ CUSIP 346414105
Valuation N/A
Long-term trend (200d) 8% below 200-day Risk 28/100 Moderate
▾ What's in the 28/100 risk score? (higher = riskier)
Fundamental health (43%) 22/100 → +9.4
leverage 20/100 · FCF trend 25/100
Smart money (short interest + insider buying) (31%) 31/100 → +9.7
Macro backdrop (VIX, curve, credit, fear/greed + week-over-week momentum) (26%) 33/100 → +8.5
Total28/100

Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.

💵 Price $122.61 · 4 days ago 📄 Financials SEC EDGAR · refreshed 3 days ago
📍 START HERE

How to read FORTY

We are not publishing an intrinsic value for this one — the section below says exactly why. Everything on this page that comes straight from the filings and the tape is still here; treat the missing valuation as a known gap, not as a verdict on the business.

Where to start — the sections that matter most for this stock
  1. 1 Reported earnings & margins ↓
    What the company actually reported — unaffected by the valuation being held.
  2. 2 Balance sheet & book value ↓
    Assets, liabilities and equity as filed.
  3. 3 Who's selling & betting against it ↓
    Insider and short-interest behaviour needs no valuation model.
Or — what are you trying to decide?
A note on process: fear-driven decisions — including fear of missing out — tend to be the expensive ones. A stock up 10% a day for three days is excitement, not evidence. Whichever reader you are, the data below is there to be checked before anything is decided.
🚀
"It's surging — should I chase it?"
The momentum / FOMO trade. Before you chase, see whether the people who know it best are quietly selling into the rally.
🏷️
"Is it a cheap bargain?"
The deep-value trade. How far below assets and our value it trades — and whether it's cheap for a reason.
ⓘ A share-count quirk blocked the per-share math

The share count we read for FORTY looks wrong — common for multi-class / founder-controlled filers that report shares per share-class. That makes per-share figures (including intrinsic value) misleading, so we suppressed them. The company's total financials below are sound.

What to use instead: Lean on the totals — revenue, net income, cash flow — and the balance sheet. Multi-class share counts are being corrected; once fixed, the per-share valuation returns automatically.

This note is only about the single DCF fair-value number — FORTY's full financial statements, health scores, and written analysis are all below.

ⓘ Why does FORTY trade at $122.61?

FORMULA SYSTEMS (1985) LTD has 15.64 billion shares outstanding. At $122.61 per share, the market values all outstanding FORTY equity at $1.92 trillion. That's market capitalization, not enterprise value — enterprise value also accounts for debt and cash. The share price by itself tells you almost nothing — a company can pick any share price by splitting or issuing more shares. What matters is the total value (Market Cap?Market Cap — The total dollar value the market is assigning to the entire company.
Why it matters: This is the number that actually matters when comparing companies. Two companies with the same business but different share counts have the same market cap.
Reference: Mega cap >$200B · Large $10–200B · Mid $2–10B · Small $300M–2B · Micro <$300M
Full explanation →) compared to what the business actually produces. This page values FORTY in Per Share?Per Share — A company-level figure divided by total shares — what one share represents.
Why it matters: Per-share metrics are the only way to fairly compare two companies with different share counts.
Full explanation → economics — what each share represents of the underlying business. Play with the share-price calculator on the homepage →

Loading insider & short-seller data…
Checking filings for failure warnings…
FINANCIAL HEALTH SCREENS

Bankruptcy + quality screens

Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.

Altman Z-Score?Altman Z-Score — A bankruptcy-risk score combining 5 financial ratios into one number. Predictive of bankruptcy within 2 years.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
709.18
Safe zone

Safe zone under the classic Altman thresholds — companies scoring here have historically gone bankrupt only rarely within ~2 years. A screening signal, not a guarantee.

The classic Z-score was calibrated on manufacturers. It is less reliable for asset-light or non-manufacturing businesses (broadcasters, media, software, services) and not applicable to banks, REITs, or insurers — for those the coefficients and the asset-turnover term distort the result. Read it as one screening input, not a verdict.

Piotroski F-Score?Piotroski F-Score — A 9-point quality checklist scoring profitability, leverage, and operating efficiency.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
7 / 9
Strong
▾ The checks — what passed, what didn't (and what we couldn't measure)
  • ✓ Positive net income
    Net income $193.8M in FY2024.
  • ✓ Positive operating cash flow
    Operating cash flow $324.5M (was $295.0M the prior year).
  • ✓ Cash flow backs up reported profit
    Operating cash flow $324.5M vs net income $193.8M.
  • ✓ Return on assets improving
    Return on assets 6.4% vs 5.9% a year ago.
  • ✓ Debt load (vs assets)
    Long-term debt is 3.8% of assets vs 6.1% a year ago ($115.2M of $3,014.9M assets).
  • ✗ Short-term liquidity (current ratio)
    Current ratio 1.31x vs 1.40x a year ago.
    Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
  • ✓ Share count (dilution)
    Share count held roughly flat (15,301.0M → 15,305.0M year-over-year).
  • ✓ Pricing power (gross margin)
    Gross margin 24.8% vs 24.6% a year ago.
  • ✗ Sales per asset (asset turnover)
    Asset turnover 0.91x vs 0.93x a year ago.
    Why this matters: Asset turnover measures how much revenue each dollar of assets generates. Rising = more productive use of the asset base.

Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.

INTERACTIVE — TWEAK YOUR ASSUMPTIONS

What if you assume different inputs?

Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount Rate?Discount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.0%, the figure our model used for FORTY. Open Advanced to also change beta, growth and the rate path.

Note: no headline intrinsic value is published for this stock (the valuation is held for a data-quality reason — see the notes above). The calculator below is a what-if tool: the values it produces are your assumptions played out, not our estimate.

4.5% (risk-free)9-10% normal18% (deep-risk)
0%2-3% (GDP)5% (rarely sustainable)

A full intrinsic value isn't shown for FORTY because the valuation is currently held for a data-quality reason (see the guardrail notes above). The reverse-DCF reading still works — it needs only the price and cash flow — but we won't publish a forward value until the underlying data passes our checks.

For comparison — the revenue growth today's price already assumes
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
Where the discount rate comes from — discount rate = risk-free + beta × equity-risk-premium
What you'd earn risk-free from government bonds — the floor under every other rate. Slide it down to model the market expecting rate cuts (value rises); up for higher-for-longer.
The extra yearly return investors demand for owning stocks instead of safe bonds — the price of risk. History runs ~4.5–6.5%; we default to 5.5% (slightly conservative). It's an estimate, not a law — lower it if you think equities are less risky than that.
Inflation reduces the purchasing power of a nominal return: a 9% gain at 3% inflation is about 6% in real terms. The intrinsic value above is already in today's dollars (a nominal DCF carries inflation in both the growth and the discount rate), so this switch does not change the value — it restates the return in real terms.
Higher beta → higher discount rate (sets the rate above). 1.0 = moves with the market.
What you think FORTY can grow revenue for ~5 years, then fades to terminal.
For a pre-profit company: the % of revenue that eventually becomes free cash flow once mature. (Our published value uses the sector norm.)
All inputs start at the values our model used.

    Copy shareable link to this scenario →

    Price$122.61
    Model IVNot applicable — DCF couldn't price this stock. The other valuation lenses on this page (reverse-DCF, peers, sector lens — whichever apply to this filer) carry the read instead.

    Analysis narrative not yet available for this stock.

    ⚠️ Base metric ($0.01/sh) is <0.5% of price ($123) - FCF DCF output will be unreliable. Growth/revenue model would be more appropriate for this stock.

    As of 3 days ago

    ANATOMY

    Anatomy of a share

    What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.

    FORTY FORMULA SYSTEMS (1985) LTD stock anatomy showing per-share revenue, operating expenses, free cash flow, and debt
    7.0%
    profit
    Where each $1 of revenue goes
    Net profit — 7.0¢ of every dollar ($0.01/sh = latest fiscal-year net income ÷ current shares. The table below shows GAAP diluted EPS of $5.09, computed on that year's weighted-average diluted shares — the share count moved, which is why they differ)
    Costs & taxes — 93.0¢ (on $0.18 revenue/sh)
    Net margin = net income ÷ revenue (most recent fiscal year).
    Plain English: each share (at $123) represents $0.18 of revenue per share per year, $0.01 of net income per current share, and $0.02 of free cash flow per share from the latest fiscal year. Each share carries $0.02 of total debt (interest-bearing borrowings, current + long-term).
    What's free cash flow / what do these mean?

    Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.

    Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.

    Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.

    Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.

    MOMENTUM — WHAT'S GETTING BETTER & WORSE

    The trend, in plain numbers (FY2023 → FY2024, latest reported)

    Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.

    ✅ Improving
    • Revenue grew +5% to $2.76B.
    • Free cash flow rose to $291.8M.
    • Net income grew +17% to $193.8M.

    Nothing was clearly worsening year-over-year.

    Roughly flat: Gross margin held to 25% (+0 pts).

    WHO

    Management & Leadership

    Guy Bernstein
    CEO (per SEC Form 3, 2026-04-20)
    Asaf Berenstin
    CFO (per SEC Form 3, 2026-04-20)
    Rafal Marek Kozlowski
    Director (per SEC Form 3, 2026-04-16)
    Marek Pawel Panek
    Director (per SEC Form 3, 2026-04-16)
    Itay Im Meroz
    Director (per SEC Form 3, 2026-04-16)
    Karolina Maria Rzonca-Bajorek
    Director (per SEC Form 3, 2026-04-16)
    WHAT

    What They Make

    Company description not yet available.

    Segment revenue breakdown not available from current data sources.
    Market Cap: 1.9TBeta: 0.72
    WHY

    Why Is It Priced Like This?

    No discounted-cash-flow value for this filer Our own data-quality checks flagged this company's figures as inconsistent enough that a discounted-cash-flow value would be misleading, so we hold it. This is our judgement about model reliability, not a gap in the company's reporting.

    What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
    Pricing analysis not yet available for this stock.
    HOW

    Business Model & Valuation

    Business model analysis not yet available for this stock.

    Free Cash Flow DCF

    Owner-earnings FCF DCF: positive free cash flow (operating cash flow − capex − stock-based comp) in a sector suited for cash-flow-based valuation.

    Show advanced inputs
    Revenue Growth9.3%
    Eps Growth-79.8%
    Historical Fcf Growth2.6%
    Sector Default12.0%
    Sector Default SourceTechnology sector default
    Best Estimate10.1%
    Methodblend(70% revenue_cagr, 30% sector)
    Growth Basistotal

    What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project product, services and recurring/cloud lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.

    WHEN

    Maturity & Competitive Position

    Competitive analysis not yet available for this stock.
    WHERE

    Geography & Markets

    Geographic revenue mix not available from current data sources.
    SIGNALS

    Market Signals

    These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.

    Model neutral, tape neutral - aligned.
    RSI?RSI — Relative Strength Index — a 0-100 momentum gauge. Above 70 = overbought; below 30 = oversold.
    Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
    Reference: 30–70 normal · >70 overbought · <30 oversold
    Full explanation →     (14)    54.9NeutralMomentum is balanced — neither overbought nor oversold.
    MACD?MACD — Moving Average Convergence Divergence — compares a fast and a slow price trend to gauge momentum direction.
    Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
    Reference: Line above signal = bullish momentum · below = bearish
    Full explanation →    BullishLine above signalThe fast trend is above the slow trend — short-term momentum is currently upward.
    50-Day Average$114.05Price above (+7.5%)Price above its 50-day average = near-term uptrend.
    200-Day Average$133.69Price belowThe 200-day line is the long-term trend divider — above it is generally considered a bull market for the stock.
    50 vs 200 CrossDeath50-day below 200-dayA "death cross" — the medium trend is below the long trend (often read as bearish).

    Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.

    QUALITY

    Data Quality & Risk Flags (7 notes — click to expand/collapse)
    Guardrail Notes (7)
    • Base metric ($0.01/sh) is <0.5% of price ($123) - FCF DCF output will be unreliable. Growth/revenue model would be more appropriate for this stock.
    • Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
    • Noncontrolling interests: only 45% of the consolidated business belongs to this share class (average of the net-income split and the equity split (latest fiscal year)), so every cash-flow input to the valuation is scaled to the economic share held by these shareholders. The financial statements below remain consolidated. Holding-company structure — read the underlying operating entity too.
    • Illiquidity discount 7% applied (small/micro-cap — harder to exit, demand a margin).
    • Extreme valuation: the model output is implausibly high vs the price — usually a share-count or units error. The model value is suppressed.
    • VALUATION HELD (EXTREME_MODEL_GAP): per-share values suppressed due to the model output failed plausibility checks.
    • Extreme valuation gap (P/IV withheld — see the note above): result may be dominated by model assumptions, share count issues, or sector-specific dynamics. Treat as low confidence.
    FINANCIALS

    Financial Statements (5-year tables — click to expand)

    From FORMULA SYSTEMS (1985) LTD's SEC filings (EDGAR).

    Income (5yr)

    YearRevenueNet IncomeEPS
    20242.8B193.8M$5.09
    20232.6B165.7M$4.12
    20222.6B199.7M$5.21
    20212.4B141.9M$3.50
    20201.9B114.0M$3.01

    Cash Flow (5yr)

    YearOperating CFCapEx− SBCFree Cash Flow
    2024 324.5M 16.4M 16.2M 291.8M
    2023 295.0M 16.7M 18.6M 259.7M
    2022 239.1M 22.1M 15.0M 202.1M
    2021 209.1M 17.4M 14.8M 177.0M
    2020 288.1M 16.7M 7.8M 263.7M

    How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 324.5M − 16.4M − 16.2M (stock-based comp) = 291.8M. This is the same owner-earnings FCF definition the valuation model uses.

    Balance Sheet

    Total Assets3.0B
    Total Liabilities1.6B
    Equity679.3M
    Total Debt257.0M
    PG
    Methodology by Pouyan Golshani, MD — founder of Gighz. Savng was built by a physician for busy professionals: every number on this page comes from SEC filings (EDGAR) and FINRA data through transparent, rules-based models — no analyst opinions, no hidden inputs. How we calculate every number →
    ⚠️ Not investment advice. Automated model outputs, last refreshed 3 days ago (the analysis-refresh date, not the latest filing period). All models have blind spots. Full disclaimer →
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