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Upturn AI SWOT - About
FORTY 
Formula Systems 1985 Ltd ADR (FORTY)
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Upturn Advisory Summary
08/14/2025: FORTY (1-star) is a SELL. SELL since 5 days. Profits (13.10%). Updated daily EoD!
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
0 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
Analysis of Past Performance
Type Stock | Historic Profit -1.63% | Avg. Invested days 41 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.73B USD | Price to earnings Ratio 21.65 | 1Y Target Price - |
Price to earnings Ratio 21.65 | 1Y Target Price - | ||
Volume (30-day avg) - | Beta 0.31 | 52 Weeks Range 67.98 - 125.00 | Updated Date 06/29/2025 |
52 Weeks Range 67.98 - 125.00 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 0.79% | Basic EPS (TTM) 5.22 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.91% | Operating Margin (TTM) 9.35% |
Management Effectiveness
Return on Assets (TTM) 5.83% | Return on Equity (TTM) 14.95% |
Valuation
Trailing PE 21.65 | Forward PE - | Enterprise Value 1957331310 | Price to Sales(TTM) 0.62 |
Enterprise Value 1957331310 | Price to Sales(TTM) 0.62 | ||
Enterprise Value to Revenue 0.7 | Enterprise Value to EBITDA 6.89 | Shares Outstanding 15332700 | Shares Floating 9506867 |
Shares Outstanding 15332700 | Shares Floating 9506867 | ||
Percent Insiders - | Percent Institutions 12.53 |
Upturn AI SWOT
Formula Systems 1985 Ltd ADR
Company Overview
History and Background
Formula Systems (1985) Ltd. was founded in Israel in 1985. It has evolved into a holding company investing in IT companies, with a focus on software products and services. It has grown through acquisitions and organic expansion of its subsidiaries.
Core Business Areas
- Software Products: Develops and markets proprietary software products across various industries, including healthcare, finance, and retail.
- IT Services: Offers IT consulting, system integration, outsourcing, and custom software development services.
- Resale of Hardware and Software: Provides resale, distribution and support services for third party products and solutions to its customers.
Leadership and Structure
The company operates under a holding company structure, with a board of directors overseeing the management teams of its various subsidiaries. Key leadership roles include the CEO and CFO of Formula Systems, as well as the leaders of each subsidiary.
Top Products and Market Share
Key Offerings
- Matrix42: Matrix42 offers digital workspace management solutions. Market share data is not readily and publicly available, but it competes in the unified endpoint management (UEM) market. Competitors include VMware (VMW), Microsoft (MSFT), and Ivanti.
- Priority Software: Priority Software is an ERP (Enterprise Resource Planning) system. Market share data specifically for Priority Software is not readily available, but the ERP market is dominated by SAP (SAP) and Oracle (ORCL). Priority focuses on the SMB market where it competes with NetSuite (ORCL) and Sage.
- Michaels-Shannon: Michaels-Shannon offers IT services and solutions for the healthcare industry. Market share is not readily available. Competitors include Accenture (ACN), Tata Consultancy Services (TCS), and Cognizant (CTSH).
Market Dynamics
Industry Overview
The IT industry is characterized by rapid technological advancements, increasing demand for digital transformation, and growing cybersecurity threats. There is significant competition and continuous innovation.
Positioning
Formula Systems positions itself as a provider of comprehensive IT solutions through its diverse portfolio of subsidiaries, each focusing on a specific segment of the market. This allows for diversification and cross-selling opportunities.
Total Addressable Market (TAM)
The TAM for the IT solutions market is estimated to be in the trillions of dollars globally. Formula Systems, through its subsidiaries, targets specific niches within this broader market, allowing it to compete effectively and capture market share.
Upturn SWOT Analysis
Strengths
- Diversified portfolio of IT companies
- Strong presence in niche markets
- Experienced management team
- Proven track record of acquisitions
Weaknesses
- Complexity of managing multiple subsidiaries
- Potential for integration challenges after acquisitions
- Dependence on the performance of individual subsidiaries
Opportunities
- Growing demand for digital transformation solutions
- Expansion into new geographic markets
- Strategic acquisitions to expand service offerings
- Partnerships with leading technology providers
Threats
- Intense competition in the IT industry
- Rapid technological changes
- Economic downturns affecting IT spending
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- ACN
- IBM
- INFY
- SAP
- ORCL
Competitive Landscape
Formula Systems competes with larger IT services and software companies. Its diversified portfolio and focus on niche markets provide a competitive advantage. Its decentralized subsidiary structure provides nimbleness but also management overhead.
Major Acquisitions
Michaels-Shannon
- Year: 2018
- Acquisition Price (USD millions): 35
- Strategic Rationale: Expansion into the healthcare IT services market.
Growth Trajectory and Initiatives
Historical Growth: Historical growth requires access to financial data. Without access to proprietary financial reports, no further analysis is possible.
Future Projections: Future growth projections require access to financial data and analyst estimates. Without access to proprietary financial reports, no further analysis is possible.
Recent Initiatives: Recent initiatives include strategic acquisitions and expansion of service offerings through existing subsidiaries.
Summary
Formula Systems is a holding company with a diversified portfolio of IT subsidiaries. It has a proven track record of growth through acquisitions and organic expansion. Managing multiple subsidiaries effectively and navigating the competitive IT landscape remain key challenges. Access to capital for future acquisitions and integration success are critical for continued growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Third-party Industry Reports
- Public Filings
- Analyst Reports (limited access)
Disclaimers:
This analysis is based on publicly available information and limited proprietary data. Financial figures and market share estimates are approximate. Investment decisions should be based on thorough research and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Formula Systems 1985 Ltd ADR
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1997-10-21 | CEO - | ||
Sector Technology | Industry Information Technology Services | Full time employees 22720 | Website https://www.formulasystems.com |
Full time employees 22720 | Website https://www.formulasystems.com | ||
Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, Information Technologies (IT) professional services, software product marketing and support, computer infrastructure and integration solutions, and learning and integration. It offers IT software solutions and services, and consulting and management services; computer and communication infrastructure solutions; software solutions, web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; and developers and professional training, and soft skills and management training services. The company also provides property and casualty insurance platforms, such as Sapiens CoreSuite and Sapiens IDITSuite; life, pension, and annuities platforms, including Sapiens, Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster; Sapiens Cloud-based DigitalSuite; data and analytics platform; and reinsurance software solutions comprising Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO. In addition, it offers Sapiens workers' compensation solutions; Sapiens medical professional liability solutions; financial and compliance solutions, such as Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro, and Sapiens Reporting Tools; Sapiens Decision, an enterprise-scale platform; technology-based solutions; application development and business process integration platforms; vertical software solutions; cloud-based services; strategic consulting and outsourcing services; and professional services, as well as sells and markets computers and peripheral equipment, and cloud computing solutions. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.
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