Formula Systems (1985) Ltd. (FORTY) Stock Analysis
Educational signal · not a buy or sell recommendation · How to read this
P/E 2.88 means the share price is 2.88 times one year of earnings per share; the S&P 500 usually sits near 20-25. Market cap $1.90B is the value of all shares combined. Beta 0.23: the stock has moved about 77% less than the S&P 500.
For informational purposes only. Not financial advice. Machine-generated analysis by Stock Expert AI — model gemini-2.0-flash, generated Mar 15, 2026. Editorial oversight is systemic, not page-by-page. Editorially accountable: Sedat ANAK, Founder and Editor-in-Chief. Data sources: Financial Modeling Prep, Yahoo Finance, SEC EDGAR
Quick AnswerFormula Systems (1985) Ltd. (FORTY) trades at $123.98. Formula Systems (1985) Ltd. delivers software solutions and IT services globally. Market cap: $1.90B, Sector: Technology.
Price as of Sep 11, 2026 · Last analyzed: Mar 15, 2026Analyst Coverage for FORTY: FORTY does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FORTY against Technology peers across nine fundamental dimensions and assigns a neutral fundamental signal based on the underlying data.
These figures come from statements filed 12 months ago — the most recent this company has published.
No score published: this stock trades under $10,000 on a typical day, so the price beside it is not one you could reliably act on.
FORTY: 1/2 scored disciplines lean bullish. Dominant signal: Seth Klarman bearish.
How is this calculated? →AI simulations built from the named investors' published principles. Not affiliated with, endorsed by, or the opinion of these individuals. How these lenses are built
Formula Systems (1985) Ltd. (FORTY) Technology Profile & Competitive Position
Formula Systems (1985) Ltd. provides proprietary and non-proprietary software solutions, IT professional services, and computer infrastructure solutions worldwide. The company's diverse portfolio includes insurance platforms, financial solutions, and consulting services, positioning it as a key player in the global IT services market with a focus on software product marketing and support.
What Is the Investment Thesis for FORTY?
The company's strong presence in the insurance and finance sectors, particularly through its Sapiens platform, provides a stable revenue stream. With a market capitalization of $1.90B and a P/E ratio of 2.88, the company's valuation reflects its growth potential. Key catalysts include the expansion of its cloud computing solutions and the increasing demand for its financial and compliance solutions. However, investors may want to evaluate the relatively low profit margin of 2.4% and the debt-to-equity ratio of 40.49% as potential risks. The company's beta of 0.23 suggests lower volatility compared to the market.
Based on FMP financials and quantitative analysis
FORTY Key Highlights
Market Cap of $1.90B indicates a substantial presence in the IT services market.
- P/E ratio of 2.88 reflects investor expectations of future earnings growth.
- Gross Margin of 24.5% demonstrates the company's ability to generate revenue from its services.
- ROE of 13.6% indicates efficient utilization of equity to generate profits.
- Debt/Equity ratio of 40.49% suggests a moderate level of financial leverage.
Who Are FORTY's Competitors?
FORTY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | MoonshotScore |
|---|---|---|---|---|
| DXC DXC Technology Company | $11.04 | +0.87% | $1.79B | 765-pillar |
| NYAX Nayax Ltd. | $47.41 | -3.59% | $1.77B | 605-pillar |
| INOD Innodata Inc. | $53.11 | -2.80% | $1.73B | 755-pillar |
| FLYW Flywire Corporation | $17.75 | -0.06% | $2.16B | 599-signal |
| GLOB Globant S.A. | $37.00 | +0.82% | $1.60B | 845-pillar |
| SESPF SeSa S.p.A. | $104.00 | 0.00% | $1.57B | 459-signal |
| KD Kyndryl Holdings, Inc. | $12.78 | +0.79% | $2.82B | 615-pillar |
| VYX NCR Voyix Corporation | $8.51 | +5.39% | $1.17B | 485-pillar |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.
What Are FORTY's Key Strengths?
Diverse portfolio of software solutions and IT services.
- Strong presence in the insurance and finance sectors.
- Global reach and established customer base.
- Experienced management team.
What Are FORTY's Weaknesses?
Relatively low profit margin.
- Dependence on specific industries.
- Exposure to currency fluctuations.
- Limited brand recognition compared to larger competitors.
What Could Drive FORTY Stock Higher?
Launch of new software platforms for the insurance and finance sectors in Q4 2026.
- Expansion of cloud computing solutions to cater to the growing demand for scalable IT solutions.
- Strategic partnerships and acquisitions to expand product portfolio and geographic reach.
What Are the Key Risks for FORTY?
Intense competition in the IT services industry may erode market share.
- Rapid technological advancements may render existing software solutions obsolete.
- Economic downturns and market volatility may reduce demand for IT services.
- Cybersecurity threats and data breaches may damage reputation and incur financial losses.
What Are the Growth Opportunities for FORTY?
- Expansion of Cloud Computing Solutions: The increasing adoption of cloud computing presents a significant growth opportunity for Formula Systems. By expanding its cloud-based offerings, the company can cater to the growing demand for scalable and cost-effective IT solutions.
- Increased Demand for Financial and Compliance Solutions: The growing complexity of financial regulations and compliance requirements drives the demand for specialized software solutions. Formula Systems can capitalize on this trend by enhancing its Sapiens FinancialPro and Sapiens Financial GO platforms. The financial compliance software market is expected to grow substantially, offering a lucrative opportunity for Formula Systems.
- Strategic Partnerships and Acquisitions: Forming strategic partnerships with other technology companies and acquiring complementary businesses can accelerate Formula Systems' growth. By expanding its product portfolio and geographic reach through partnerships and acquisitions, the company can enhance its competitive position and capture new market opportunities. This strategy can lead to increased market share and revenue growth.
- Focus on Vertical Software Solutions: Developing and marketing vertical software solutions tailored to specific industries can provide a competitive advantage for Formula Systems. By focusing on niche markets and addressing the unique needs of specific industries, the company can differentiate itself from competitors and command higher margins. This approach can lead to increased customer loyalty and recurring revenue streams.
- Leveraging Big Data and Analytics: The increasing availability of big data and the growing demand for data-driven insights present a significant growth opportunity for Formula Systems. By leveraging its expertise in database and data warehouse mining, the company can offer advanced analytics solutions that help customers make better decisions and improve their business performance. The big data analytics market is expected to grow rapidly, providing a substantial addressable market for Formula Systems.
What Are FORTY's Competitive Advantages?
- Proprietary Software: Owns and develops proprietary software solutions, providing a competitive advantage.
- Industry Expertise: Possesses deep industry expertise in the insurance and finance sectors.
- Long-Standing Customer Relationships: Has established long-standing relationships with key customers.
- Global Presence: Operates globally, serving customers in various regions and countries.
What Does FORTY Do?
Incorporated in 1985 and headquartered in Or Yehuda, Israel, Formula Systems (1985) Ltd. has evolved into a global provider of software solutions and IT services. The company operates through its subsidiaries, offering a wide array of proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, and computer infrastructure and integration solutions. Formula Systems delivers computer and telecommunication infrastructure solutions, cloud computing solutions, and database and big data services. Its offerings include customer relations management, computer systems management infrastructures, web world content management, database and data warehouse mining, application integration, database and system, data management, and software development tools, along with professional training courses and advanced professional studies. Formula Systems markets and sells computers and peripheral equipment to business customers. It provides property and casualty insurance platforms like Sapiens, Sapiens CoreSuite, Sapiens IDITSuite, Sapiens PolicyPro, Sapiens BillingPro, Sapiens ClaimsPro, e-Tica, and Tia Enterprise. It also offers life, pension, and annuities platforms, including Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster. The company's reinsurance software solutions comprise Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO, along with the Sapiens platform for workers' compensation solutions. Formula Systems also provides financial and compliance solutions, such as Sapiens FinancialPro, Sapiens Financial GO, and Sapiens StatementPro, and Sapiens DECISION, a decision management platform. Additionally, it offers application development and business process integration platforms, vertical software solutions, strategic consulting and outsourcing services, and professional services, as well as develops on-premise payroll software. With a global presence, Formula Systems caters to diverse industries, leveraging its comprehensive suite of IT solutions and services.
What Products and Services Does FORTY Offer?
- Provides proprietary and non-proprietary software solutions.
- Offers IT professional services to businesses globally.
- Markets and supports software products.
- Delivers computer infrastructure and integration solutions.
- Offers cloud computing solutions and database services.
- Provides specialized platforms for the insurance industry.
- Develops financial and compliance solutions.
How Does FORTY Make Money?
- Software Licensing: Generates revenue through the licensing of its proprietary software solutions.
- IT Services: Provides IT professional services, including consulting, implementation, and support.
- Subscription Services: Offers subscription-based access to its cloud computing solutions and software platforms.
- Product Sales: Markets and sells computers and peripheral equipment to business customers.
What Industry Does FORTY Operate In?
Formula Systems (1985) Ltd. operates in the competitive IT services industry, which is characterized by rapid technological advancements and evolving customer needs. Formula Systems competes with other IT service providers by offering specialized solutions for the insurance and finance sectors. The company's focus on proprietary software solutions and IT professional services differentiates it in the market.
Who Are FORTY's Key Customers?
- Insurance Companies: Provides software platforms and solutions for property and casualty, life, pension, and annuities insurance.
- Financial Institutions: Offers financial and compliance solutions to banks, investment firms, and other financial institutions.
- Businesses: Provides IT services and software solutions to businesses across various industries.
- Government Agencies: Delivers IT solutions and services to government agencies and public sector organizations.
Research confidence
Broad, current evidence sits behind this analysis.
- ● Scored on 94% of our measures
- ● Price is current
- ● Latest filing 17 days ago
- ● No analyst coverage
MoonshotScore History
Recorded daily since 2026-08-23 · 19 snapshots
| 2026-08-23 | 43 |
| 2026-08-26 | 43 |
| 2026-08-29 | 43 |
| 2026-09-01 | 55 |
| 2026-09-04 | 55 |
| 2026-09-07 | 54 |
| 2026-09-10 | 54 |
What changed?
The grade moved from 43 to 54 (+11).
Over the same 18 days the stock moved +9.7%.
Company Profile
Formula Systems (1985) Ltd. operates in the Information Technology Services industry within the Technology sector. It is headquartered in Or Yehuda, IL. The company is led by CEO Guy Bernstein. FORTY has traded publicly since 1997.
Key Financial Metrics
Return on equity for Formula Systems (1985) Ltd. stands at 59.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 17.4%, showing how much profit it generates from its asset base. FORTY trades at a trailing price-to-earnings ratio of 2.88, below the Technology sector average of ~32.70x. A current ratio of 1.67 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 38.7%, the inverse of the P/E and a quick read on earnings relative to price.
FORTY Valuation & Market Position
With a $1.90B market cap, Formula Systems (1985) Ltd. sits in the small-cap segment of the market.
Quarterly Financial Performance: Formula Systems (1985) Ltd.
Revenue for Formula Systems (1985) Ltd. came in at $782.4M during Q2 FY2026, a 6.0% improvement versus the preceding quarter. The company recorded net income of $23.3M, with diluted EPS of $1.47. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Technology company. Across the four most recent quarters, FORTY averaged $10.02 in diluted EPS.
Financial Health
Formula Systems (1985) Ltd.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.91 places it in the grey zone, a middle ground that warrants monitoring.
FORTY Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Diverse portfolio of software solutions and IT services.
- Strong presence in the insurance and finance sectors.
- Global reach and established customer base.
- Experienced management team.
Bear Case
- Relatively low profit margin.
- Dependence on specific industries.
- Exposure to currency fluctuations.
- Limited brand recognition compared to larger competitors.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · September 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 FY2026 | $782M | $23M | $1.47 |
| Q1 FY2026 | $738M | $36M | $2.25 |
| Q4 FY2025 | $713M | $558M | $35.25 |
| Q3 FY2025 | $700M | $17M | $1.10 |
Q2 FY2026 · filed 25 Aug 2026 · SEC EDGAR →
Based on FMP financials and quantitative analysis
FORTY Latest News
-
12 Information Technology Stocks Moving In Tuesday's Intraday Session
benzinga · Sep 8, 2026
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Is It Too Late to Buy Formula Systems (1985) Ltd (FORTY) After 3.3% Rally? GF Value Says Undervalued
gurufocus.com · Aug 26, 2026
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Formula Sys (1985) Q2 EPS $1.47 Up From $0.95 YoY, Sales $782.439M Up From $602.727M YoY
benzinga · Aug 25, 2026
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Formula Systems Reports Second Quarter and First Half 2026 Financial Results
globenewswire.com · Aug 25, 2026
FORTY Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations collected by Financial Modeling Prep for FORTY.
Price Targets
Wall Street price target analysis for FORTY.
FORTY MoonshotScore
MoonshotScore is Stock Expert AI's proprietary 0-100 research rating, not a buy or sell recommendation. No MoonshotScore is published for FORTY; grades run from A+ (80-100) to F (below 30).
Latest News
12 Information Technology Stocks Moving In Tuesday's Intraday Session
Is It Too Late to Buy Formula Systems (1985) Ltd (FORTY) After 3.3% Rally? GF Value Says Undervalued
Formula Sys (1985) Q2 EPS $1.47 Up From $0.95 YoY, Sales $782.439M Up From $602.727M YoY
Formula Systems Reports Second Quarter and First Half 2026 Financial Results
Leadership: Guy Bernstein
CEO
Guy Bernstein serves as the CEO of Formula Systems (1985) Ltd., leading a workforce of 21,900 employees. His career encompasses extensive experience in the technology sector, with a focus on driving growth and innovation. Bernstein's background includes leadership roles in various technology companies, where he has demonstrated expertise in strategic planning, business development, and operational management. He holds advanced degrees in business and technology, providing him with a strong foundation for leading a global IT services company.
Track Record: Under Guy Bernstein's leadership, Formula Systems (1985) Ltd. has expanded its global presence and strengthened its position in the insurance and finance sectors. Key achievements include the successful launch of new software platforms, the expansion of cloud computing solutions, and the acquisition of strategic businesses. Bernstein has also focused on improving operational efficiency and enhancing customer satisfaction, contributing to the company's overall growth and profitability.
Formula Systems (1985) Ltd. ADR Information Sponsored
An American Depositary Receipt (ADR) is a certificate representing shares of a foreign company trading on U.S. stock exchanges. For Formula Systems (FORTY), each ADR represents a specific number of ordinary shares of the company traded on its home market. This allows U.S. investors to invest in Formula Systems without dealing with foreign exchanges.
- Home Market Ticker: Tel Aviv Stock Exchange (TASE), Israel
- ADR Level: 2
- ADR Ratio: 1:1
- Home Market Ticker: FORT
Common Questions About FORTY (Technology)
Is FORTY a good stock?
Stock Expert AI does not rate FORTY buy, sell or hold. Formula Systems (1985) Ltd. has no MoonshotScore yet; read the financial checkup, analyst consensus and risks directly. Whether it fits is your call: check what it sells, whether it earns, what the price assumes, and what would prove you wrong.
What do analysts say about FORTY stock?
Analyst coverage of Formula Systems (FORTY) is limited, but the general sentiment is cautiously optimistic. The company's diverse portfolio of software solutions and IT services, coupled with its strong presence in the insurance and finance sectors, are seen as positive factors.
What are the key factors to evaluate for FORTY?
Evaluate FORTY on fundamentals, analyst consensus, and risk factors. P/E: 2.88x vs the S&P 500's ~20-25x. The company's strong presence in the insurance and finance sectors, particularly through its Sapiens platform, provides a stable revenue stream. Not financial advice.
How frequently does FORTY data refresh on this page?
FORTY's price was last updated on Sep 11, 2026 and refreshes on page view during U.S. market hours; the quote is a provider snapshot, not an exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven FORTY's recent stock price performance?
Formula Systems (1985) Ltd. (FORTY) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diverse portfolio of software solutions and IT services. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FORTY overvalued or undervalued right now?
Formula Systems (1985) Ltd. (FORTY) trades at 2.88x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Can I buy fractional shares of FORTY?
Yes, most major brokerages offer fractional shares of Formula Systems (1985) Ltd. (FORTY) with no minimum purchase requirement. This means you can invest any dollar amount regardless of the share price. Check your brokerage platform for specific terms, fees, and fractional share availability.
How can I track FORTY's earnings and financial reports?
Formula Systems (1985) Ltd. (FORTY) reports quarterly earnings approximately 4-6 weeks after each fiscal quarter ends. You can track earnings dates, revenue and EPS estimates, and actual results on this page's Financials tab. Earnings surprises (beats or misses) often cause significant short-term price moves. Your brokerage can send alerts for FORTY earnings announcements.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Analyst opinions are based on limited coverage and may not be representative of all viewpoints.
- Future performance is subject to various risks and uncertainties.