Formula Systems 1985 Ltd ADR (FORTY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Formula Systems 1985 Ltd ADR stock (FORTY) is currently trading at $125.00. Formula Systems 1985 Ltd ADR PE ratio is 31.83. Formula Systems 1985 Ltd ADR PS ratio (Price-to-Sales) is 0.66. WallStSmart rates FORTY as Sell.
- FORTY PE ratio analysis and historical PE chart
- FORTY PS ratio (Price-to-Sales) history and trend
- FORTY intrinsic value — DCF, Graham Number, EPV models
- FORTY stock price prediction 2025 2026 2027 2028 2029 2030
- FORTY fair value vs current price
- FORTY insider transactions and insider buying
- Is FORTY undervalued or overvalued?
- Formula Systems 1985 Ltd ADR financial analysis — revenue, earnings, cash flow
- FORTY Piotroski F-Score and Altman Z-Score
- FORTY analyst price target and Smart Rating
Formula Systems 1985 Ltd ADR
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FORTY Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Formula Systems 1985 Ltd ADR (FORTY)
FORTY trades 294% above its Graham fair value of $33.86, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Formula Systems 1985 Ltd ADR (FORTY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales. Concerns around peg ratio and operating margin. Mixed signals suggest waiting for clearer direction before acting.
Formula Systems 1985 Ltd ADR (FORTY) Key Strengths (2)
Paying less than $1 for every $1 of annual revenue
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Formula Systems 1985 Ltd ADR (FORTY) Areas to Watch (8)
Earnings declining -20.80%, profits shrinking
Very expensive relative to growth, significant premium
Very thin margins with limited operational efficiency
Very thin margins, barely profitable
Very low institutional interest at 12.59%
Moderate profitability with room for improvement
Fairly priced relative to book value
Solid revenue growth at 11.30% per year
Supporting Valuation Data
Formula Systems 1985 Ltd ADR (FORTY) Detailed Analysis Report
Overall Assessment
This company scores 44/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 2 register as strengths (avg 8.5/10) while 8 fall into concern territory (avg 3.1/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Market Cap. Valuation metrics including Price/Sales (0.66) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Operating Margin. Some valuation metrics including PEG Ratio (4.07), Price/Book (2.57) suggest expensive pricing. Growth concerns include Revenue Growth at 11.30%, EPS Growth at -20.80%, which may limit upside. Profitability pressure is visible in Return on Equity at 14.10%, Operating Margin at 9.13%, Profit Margin at 2.70%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 14.10% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 11.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and PEG Ratio are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
FORTY Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
FORTY's Price-to-Sales ratio of 0.66x trades at a 47% premium to its historical average of 0.45x (91th percentile). The current valuation is 16% below its historical high of 0.79x set in Aug 2016, and 563% above its historical low of 0.1x in Jan 2009. Over the past 12 months, the PS ratio has expanded from ~0.6x, reflecting growing market expectations outpacing revenue growth.
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Data-driven financial summary for Formula Systems 1985 Ltd ADR (FORTY) · TECHNOLOGY › INFORMATION TECHNOLOGY SERVICES
The Big Picture
Formula Systems 1985 Ltd ADR is a mature, profitable business with steady cash generation. Revenue reached 2.9B with 11% growth year-over-year. Profit margins are strong at 270.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 1410.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Dividend sustainability with a current yield of 122.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive moves, and regulatory changes that could impact Formula Systems 1985 Ltd ADR.
Bottom Line
Formula Systems 1985 Ltd ADR is a well-established business delivering consistent profitability with 270.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Formula Systems 1985 Ltd ADR(FORTY)
NASDAQ
TECHNOLOGY
INFORMATION TECHNOLOGY SERVICE...
USA
Formula Systems (1985) Ltd., provides software, proprietary and non-proprietary software, and software product marketing and support services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.