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Formula Systems (1985) Ltd.

FORTY Technology Information Technology Services

Formula Systems (1985) Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $2.6 billion, up 18.4% from fiscal 2024. In the quarter to June 2026, revenue grew 29.8%, EPS grew 55.1%, free cash flow grew 1,330.8% and total debt rose 1.98%, each against the same quarter a year earlier. Operating cash flow growth for three consecutive years.

112.11 2.48 −2.16%
Market cap
$1.8B
P/E
2.7×
Fwd P/E
13.9×
Dividend yield
0.46%
F-score
6/9
Altman Z
2.48
Beneish M
−2.92
Dividend safety
77/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

Insider Decisions trades per month

Dec 25 Mar 26 Jun 26 Sep 26
Buy — — — — — — — — — — — —
Sell — — — — — — — — — — — —
Insider Ownership 6.32%

Capital & Financial Ratios $m

Market Cap 1,750.00
Revenue 2,925.74
Net Income 669.06
Free Cash Flow 662.60
Net Debt (352.94)
Current Ratio 1.48
Debt/Equity 0.31 (at or below 0.5: strong)
P/E ratio 2.72
Fwd P/E 13.90
P/S ratio 0.59
P/B ratio 0.97
Past 5Y EPS Growth 66.39% (at or above 15%: strong)
This Y EPS Growth —
Next Y EPS Growth —
Next Y revenue growth 6.97%
Next 5Y EPS Growth —

Green and red mark values outside typical ranges. How we judge →

Valuation vs history

EV/Sales, ten years
EV/Sales is 0.5×, against a ten-year median of 0.5×; over the ten years it ranged from 0.1× in 2016 to 1.1× in 2025.
P/E against its own 10 years 1.47%
10-year low 10-year high
P/S against its own 10 years 59.44%
10-year low 10-year high
P/B against its own 10 years 43.92%
10-year low 10-year high
EV/Sales against its own 10 years 43.58%
10-year low 10-year high
EV/FCF against its own 10 years 23.16%
10-year low 10-year high

Dividends

Payout Ratio 0.01
Annual Dividend Rate 0.52
Annual Dividend Yield 0.46%
total individual payouts
2025 2.48
0.97
0.47
0.52
0.52
2024 0.62
0.61
0.62
2023 0.63
0.63
2022 1.39
0.77
0.62
2021 1.44
0.65
0.79
2020 0.52
0.52
2019 0.98
0.52
0.46
2018 1.02
0.34
0.34
0.34
2017 0.34
0.34
2016 1.16
0.34
0.34
0.48
special payouts not included in total or ratios

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 528 563 1,280 865
Receivables 806 893 855 1,052
Inventory 42 31 30 52
Other — — — —
1,376 1,487 2,166 1,968
2023 2024 2025 Q'26
Payables 332 394 564 454
ST’ Debt 219 229 255 290
Other 44 62 68 103
986 1,138 1,330 1,333

Compound Annual Growth %

10y 5y 3y
Sales 10.44% 6.32% 0.70%
Cash Flow 15.93% 5.89% 16.90%
Earnings 40.78% 66.94% 95.32%
Book Value 9.69% 9.91% 14.74%

Revenue $m

Mar Jun Sep Dec Year
’26 738 782 — — —
’25 619 603 697 708 2,627
’24 698 668 564 289 2,218
’23 670 655 655 640 2,621
’22 651 637 628 657 2,572
’21 573 588 586 658 2,404
’20 466 437 487 543 1,934
Fiscal quarters ending in the months shown.

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 — — — — —
’25 — — — 382 382
’24 — — — 324 324
’23 — — — — 295
’22 — — — — 239
’21 — — — — 209
’20 — — — — 287
Fiscal quarters ending in the months shown.

Free Cash Flow $m

Mar Jun Sep Dec Year
’26 — — — — —
’25 — — — 354 354
’24 — — — 295 295
’23 — — — (31) 264
’22 — — — (39) 200
’21 — — — (29) 180
’20 — — — (28) 259
Fiscal quarters ending in the months shown.

EPS $

Mar Jun Sep Dec Year
’26 2.25 1.47 — — —
’25 1.23 0.95 1.08 35.03 38.39
’24 1.10 1.20 1.51 1.28 5.09
’23 1.01 1.11 1.00 1.01 4.12
’22 1.05 2.12 1.09 1.00 5.21
’21 0.80 0.86 0.85 0.99 3.50
’20 0.71 0.73 0.82 0.76 3.01
Fiscal quarters ending in the months shown.

Target Price Range

Analyst price targets

Recommendation Rating

1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Trend 2026e 2027e 2028e
Price, $
Price, $ Low 23.54 35.52 32.55 35.64 36.75 79.25 70.89 55.97 60.39 80.15

Analyst estimates 2026–2028

Powerpack
High 42.95 44.20 45.65 74.00 99.06 142.00 122.79 82.55 96.50 190.56
People
People Employees 12,222 14,477 15,101 17,378 18,457 20,333 22,059 21,900 22,720 19,337
Revenue/emp, $m 0.09 0.09 0.10 0.10 0.10 0.12 0.12 0.12 0.10 0.14
Income, $m
Income, $m Revenue 1,109 1,355 1,493 1,701 1,934 2,404 2,572 2,621 2,218 2,627
Gross margin, % 23.34 21.90 22.33 22.69 23.14 23.45 24.20 24.56 20.09 19.76
EBT 77 52 101 120 144 184 257 212 161 150
EBT margin, % 6.97 3.81 6.79 7.04 7.43 7.65 9.98 8.08 7.25 5.71
Net income 56 39 77 94 114 142 200 166 194 669
Depreciation 32 44 49 87 96 122 115 122 115 153
Per share, $
Per share, $ Revenue 78.00 93.87 101.29 111.99 126.52 157.25 168.17 171.29 144.95 171.61
Earnings 1.58 0.74 2.18 2.56 3.05 3.57 5.31 4.19 5.22 39.63
Cash flow 5.27 5.62 5.60 12.91 18.77 13.68 15.63 19.28 21.20 24.96
Capex (1.19) (1.31) (1.37) (2.30) (1.84) (1.88) (2.53) (2.02) (1.89) (1.82)
Free cash flow 4.08 4.31 4.23 10.61 16.93 11.79 13.11 17.25 19.31 23.13
Book value 50.92 53.54 54.64 59.01 72.52 77.16 76.94 85.50 90.78 116.13
Shares, m 14 14 15 15 15 15 15 15 15 15
Valuation, ×
Valuation, × P/E 25.59 57.77 16.27 26.66 27.94 34.73 13.25 15.52 17.08 4.22
P/S 0.52 0.46 0.35 0.61 0.68 0.79 0.42 0.38 0.61 0.97
P/B 0.79 0.80 0.65 1.16 1.18 1.61 0.92 0.76 0.98 1.44
EV/Sales 0.32 0.52 0.41 0.66 0.68 0.82 0.45 0.38 0.58 0.65
EV/FCF 3.30 4.14 4.93 4.38 2.73 3.02 1.45 1.12 4.02 2.59
Cash, $m
Cash, $m Operating cash flow 75 81 83 196 287 209 239 295 324 382
Capex (17) (19) (20) (35) (28) (29) (39) (31) (29) (28)
Free cash flow 58 62 62 161 259 180 200 264 295 354
Balance, $m
Balance, $m Working capital 275 262 256 294 381 355 371 390 349 835
Total debt 59 345 381 494 545 586 648 541 479 442
Net debt (217) 84 86 89 12 74 79 13 (84) (839)
Shareholders’ equity 724 773 805 896 1,109 1,180 1,177 1,308 1,389 1,778
Returns, %
Returns, % ROA 1.75 0.71 2.01 2.07 2.03 2.07 2.94 2.28 2.73 18.38
ROIC 10.91 5.31 7.68 8.78 9.52 10.37 13.77 11.32 8.78 13.07
ROE 3.14 1.38 4.10 4.56 4.67 4.77 6.91 5.15 5.91 38.30
Negative figures in brackets.

All 10 years →

Fiscal years to Dec 2025 · latest quarter Jun 2026

Charts ten years each

Formula Systems (1985) Ltd. vs peers in Information Technology Services (Q) = latest quarter vs a year earlier

Company Market cap P/E Fwd P/E Revenue growth (Q) EPS growth (Q) FCF growth (Q) Gross margin (Q) EBIT margin (Q) Compare
DXC DXC Technology Company. $2.2B 18.7× 14.8× −5.06% (below 0%: shrinking) +733.33% (above 0%: growing) +149.64% (above 0%: growing) 20.37% 0.53% Compare
INOD Innodata Inc $2.0B 36.9× 94.5× +57.80% (above 0%: growing) +86.96% (above 0%: growing) +4,885.72% (above 0%: growing) 46.08% 17.21% Compare
PONY Pony AI Inc. - Sponsored ADR $1.8B — (loss-making) — (loss-making) +68.82% (above 0%: growing) n/m −73.21% (below 0%: shrinking) 17.53% (181.51%) Compare
FORTY Formula Systems (1985) Ltd. $1.8B 2.7× 13.9× +29.82% (above 0%: growing) +55.10% (above 0%: growing) +1,330.84% (above 0%: growing) 20.25% 9.16%
CNXC Concentrix Corporation $1.7B — (loss-making) 7.0× −1.19% (below 0%: shrinking) n/m +38.49% (above 0%: growing) 34.60% (37.10%) Compare
GLOB Globant S.A. $1.7B 15.3× 10.6× +0.04% (above 0%: growing) n/m +476.16% (above 0%: growing) 33.89% 3.23% Compare
EFOR Everforth Inc. $1.6B 19.7× 14.3× −1.33% (below 0%: shrinking) −47.76% (below 0%: shrinking) −60.02% (below 0%: shrinking) 28.26% 4.08% Compare
KEEL Keel Infrastructure Corp $1.6B — (loss-making) — (loss-making) −50.04% (below 0%: shrinking) n/m −772.56% (below 0%: shrinking) (285.09%) (462.62%) Compare
MGRT Mega Fortune Company Limited $1.4B — — — — — — — Compare
Median of peers $1.7B 19.2× 14.3× −1.19% +86.96% +38.49% 28.26% 0.53%

All 73 Information Technology Services stocks →

Formula Systems (1985) Ltd. (FORTY) key facts

  • Strength: Formula Systems (1985) Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $2.6 billion, up 18.4% from fiscal 2024.
  • Strength: Net income was $669.1 million, or $39.63 per share (basic), a net margin of 23.1%.
  • Formula Systems (1985) Ltd. (FORTY) is an Information Technology Services company in the Technology sector, traded in the US as an ADR.
  • As of October 15, 2026, FORTY traded at $112.11, a market capitalization of $1.8 billion.
  • At that price the stock trades at 2.7× trailing-twelve-month earnings and 0.6× sales; its P/E is higher than 1% of its own readings over the past ten years.
  • Formula Systems (1985) Ltd. pays an annual dividend of $0.52 per share, a yield of 0.46%, with a payout ratio of 1.30%.
  • Return on equity was 38.3% and debt-to-equity 0.31.
  • Its Piotroski F-score is 6 out of 9 and its Altman Z-score is 2.48 (grey zone) for fiscal 2025.

Source: company filings (standardised) and stockrow calculations.

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stockrow.com/FORTY · Data as of Jun 30, 2026 · For information only; not investment advice. · © 2026 stockrow.com