Formula Systems (1985) Ltd. (FORTY) vs Pony AI Inc. - Sponsored ADR (PONY)

Formula Systems (1985) Ltd. and Pony AI Inc. - Sponsored ADR are both Information Technology Services companies. Formula Systems (1985) Ltd. and Pony AI Inc. - Sponsored ADR are of similar size ($1.8B and $1.8B). Pony AI Inc. - Sponsored ADR has negative trailing earnings, so its P/E is not meaningful; Formula Systems (1985) Ltd. trades at 2.7×. Pony AI Inc. - Sponsored ADR grew revenue faster over the last twelve months: 45.8% against 41.0%. Formula Systems (1985) Ltd. has the higher net margin (21.6% vs −118.5%) and the higher return on invested capital (12.0% vs −31.8%). Across the 16 metrics below, Formula Systems (1985) Ltd. leads on 13 and Pony AI Inc. - Sponsored ADR on 3.

Valuation

Metric FORTY PONY Information Technology Services median
P/E 2.72 n/m 16.42
P/S 0.59 17.09 1.06
P/B 0.97 1.25 1.57
Price to free cash flow 2.59 n/m 11.62
EV/EBITDA 5.46 n/m 9.74
EV/Sales 0.47 8.15 1.23
Earnings yield 36.78% (7.30%) 4.25%
Free cash flow yield 38.58% (12.87%) 4.50%

Profitability

Metric FORTY PONY Information Technology Services median
Gross margin 19.83% 16.23% 29.97%
Operating margin 8.54% (214.04%) 3.30%
Net margin 21.57% (118.47%) 2.09%
Free cash flow margin 0.00% (162.83%) 1.51%
Return on equity 0.00% 0.00% 3.67%
Return on assets 18.83% (10.85%) 0.47%
Return on invested capital 11.98% (31.75%) 0.57%

Growth

Metric FORTY PONY Information Technology Services median
Revenue growth (TTM) 41.04% 45.83% 7.12%
EPS growth (last fiscal year) 654.22% 85.42% 1.38%
Revenue growth, 5-year CAGR 6.32% — 7.86%
Net income growth, 5-year CAGR 66.94% — 0.00%

Health

Metric FORTY PONY Information Technology Services median
Debt to equity 0.31 0.00 0.45
Current ratio 1.48 15.94 1.66
Net debt to EBITDA (2.40) 4.59 0.45

Dividend

Metric FORTY PONY Information Technology Services median
Dividend yield 0.46% — 1.97%
Payout ratio 0.01 — 0.30

Size

Metric FORTY PONY Information Technology Services median
Market cap 1.75b 1.83b 1.11b

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