Everforth Inc. (EFOR) vs Formula Systems (1985) Ltd. (FORTY)

Everforth Inc. and Formula Systems (1985) Ltd. are both Information Technology Services companies. Formula Systems (1985) Ltd. is the larger, with a market value of $1.7B against $1.3B — 1.3× the size. Formula Systems (1985) Ltd. trades at the lower P/E: 2.8× against 17.0×. Formula Systems (1985) Ltd. grew revenue faster over the last twelve months: 41.0% against −0.95%. Formula Systems (1985) Ltd. has the higher net margin (21.6% vs 2.09%) and the higher return on invested capital (12.0% vs 3.90%). Across the 22 metrics below, Formula Systems (1985) Ltd. leads on 16 and Everforth Inc. on 6.

Valuation

Metric EFOR FORTY Information Technology Services median
P/E 16.98 2.79 14.63
P/S 0.34 0.60 1.13
P/B 0.75 0.99 2.10
Price to free cash flow 6.14 1.58 10.11
EV/EBITDA 8.56 5.64 8.56
EV/Sales 0.67 0.48 1.20
Earnings yield 5.89% 35.86% 4.56%
Free cash flow yield 16.28% 63.25% 4.37%

Profitability

Metric EFOR FORTY Information Technology Services median
Gross margin 28.53% 19.83% 31.05%
Operating margin 4.86% 8.54% 3.30%
Net margin 2.09% 21.57% 2.09%
Free cash flow margin 5.57% 0.00% 0.00%
Return on equity 4.57% 0.00% 4.12%
Return on assets 2.15% 18.83% 0.61%
Return on invested capital 3.90% 11.98% 0.57%

Growth

Metric EFOR FORTY Information Technology Services median
Revenue growth (TTM) (0.95%) 41.04% 7.12%
EPS growth (last fiscal year) (32.11%) 654.22% —
Revenue growth, 5-year CAGR 2.59% 6.32% 7.71%
Net income growth, 5-year CAGR (10.74%) 66.94% 0.00%

Health

Metric EFOR FORTY Information Technology Services median
Debt to equity 0.80 0.31 0.45
Current ratio 2.13 1.48 1.66
Net debt to EBITDA 2.93 (2.40) 0.44

Dividend

Metric EFOR FORTY Information Technology Services median
Dividend yield — 0.95% 1.21%
Payout ratio 0.00 0.30 0.00

Size

Metric EFOR FORTY Information Technology Services median
Market cap 1.33b 1.73b 1.36b

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