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FORTY 
Formula Systems 1985 Ltd ADR (FORTY)
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Upturn Advisory Summary
12/03/2025: FORTY (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 32.32% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 12/03/2025 |
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 1985. It's an Israeli-based global information technology holding company that invests in and manages a portfolio of IT companies.
Core Business Areas
- Software and Services: This segment includes software development, system integration, consulting, and other IT services.
- IT Infrastructure Solutions: This segment focuses on providing IT infrastructure solutions such as hardware, software, and related services.
- Healthcare IT Solutions: Provides IT solutions tailored for healthcare industry needs, including electronic health records and data analytics.
Leadership and Structure
Formula Systems operates as a holding company. Key leadership includes Asaf Baruch, the CEO. The company's structure is based on managing a portfolio of subsidiaries, each with its own management team.
Top Products and Market Share
Key Offerings
- Matrix IT: Matrix IT is Formula System's largest subsidiary, providing a range of IT services. The company competes with other consulting and IT service firms. Revenue for Matrix IT accounts for a substantial portion of Formula's total revenue. Exact market share data is unavailable, but they operate in a highly competitive market against firms like Tata Consultancy Services, Infosys and Accenture.
- Sapiens: Sapiens provides software solutions, primarily for the insurance industry. They compete with Duck Creek Technologies and Guidewire. Revenue from Sapiens is significant, and they have a substantial market share in the insurance software sector. They have a large global customer base in Europe, North America and Asia.
- Team Technologies: Team Technologies focuses on data management and business intelligence solutions, catering to various industries. They face competition from companies specializing in data analytics and BI tools.
Market Dynamics
Industry Overview
The IT industry is currently experiencing growth driven by digital transformation, cloud computing, cybersecurity, and data analytics. Increased spending on IT services and software is occurring across various sectors.
Positioning
Formula Systems is positioned as a holding company that invests in and manages IT firms in strategic growth areas. Their competitive advantage lies in their diverse portfolio and access to a range of technologies.
Total Addressable Market (TAM)
The total addressable market for the segments Formula Systems operates in is estimated to be in the hundreds of billions of USD globally. Formula Systems is positioned to capture a small but meaningful portion of this TAM through its various subsidiaries.
Upturn SWOT Analysis
Strengths
- Diversified portfolio of IT companies
- Strong market position in key segments such as insurance software (Sapiens)
- Experienced management team
- Global presence
Weaknesses
- Holding company structure can lead to management complexity
- Performance reliant on individual subsidiaries
- Potential for inconsistent financial results across the portfolio
- Dependence on key subsidiaries like Matrix IT for revenue
Opportunities
- Growing demand for digital transformation services
- Expansion into emerging markets
- Increased adoption of cloud computing
- Strategic acquisitions to expand portfolio
Threats
- Intense competition in the IT industry
- Economic downturn affecting IT spending
- Rapid technological changes
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- ACN
- IBM
- INFY
- CTSH
Competitive Landscape
Formula Systems has a competitive advantage in certain niche areas, such as insurance software through Sapiens, but faces strong competition from larger global IT service providers.
Growth Trajectory and Initiatives
Historical Growth: Formula Systems has demonstrated growth through both organic expansion and acquisitions, particularly within its subsidiaries.
Future Projections: Future growth projections depend on market conditions, investment strategies, and performance of subsidiaries. Analyst estimates are not readily available.
Recent Initiatives: Recent initiatives include strategic investments in new technologies and acquisitions to strengthen market position.
Summary
Formula Systems is a holding company managing a portfolio of IT firms. Key strengths include its diversification and market positions held by subsidiaries like Sapiens and Matrix IT. Potential weaknesses include management complexity and reliance on individual subsidiaries. Growth opportunities exist through digital transformation and market expansion, but the company faces competition and economic risks.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company reports, Market research reports, Industry analysis websites
Disclaimers:
The analysis provided is based on publicly available information and should not be considered financial advice. Market conditions and company performance are subject to change.
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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