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Formula Systems (1985) Ltd FORTY

Morningstar Rating
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About Quantitative Ratings

Morningstar Quantitative Ratings for Stocks are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies with quantitative ratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.

Price vs Fair Value

FORTY is trading at a 19% discount.
Price
ILS 286.12
Fair Value
ILS 546.82
Uncertainty
Very High
1-Star Price
ILS 678.76
5-Star Price
ILS 493.75
Economic Moat
Ynlgh
Capital Allocation
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News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
15.81
Price/Sales
0.44
Dividend Yield (Trailing)
1.62%
Dividend Yield (Forward)
1.62%
Total Yield
1.67%

Company Profile

Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Small Core
Total Number of Employees
22,059

Comparables

Valuation

Metric
FORTY
MTRX
MLTM
Price/Earnings (Normalized)
15.8120.2422.39
Price/Book Value
1.784.721.75
Price/Sales
0.440.930.44
Price/Cash Flow
10.757.34
Price/Earnings
FORTY
MTRX
MLTM

Financial Strength

Metric
FORTY
MTRX
MLTM
Quick Ratio
1.371.061.12
Current Ratio
1.411.171.31
Interest Coverage
9.465.482.55
Quick Ratio
FORTY
MTRX
MLTM

Profitability

Metric
FORTY
MTRX
MLTM
Return on Assets (Normalized)
6.04%6.70%2.72%
Return on Equity (Normalized)
29.18%27.40%10.17%
Return on Invested Capital (Normalized)
9.27%13.20%6.35%
Return on Assets
FORTY
MTRX
MLTM
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Information Technology Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ACN
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IBM
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FI
Fiserv IncWxwyylvbnRjxjy$91.8 Bil
INFY
Infosys Ltd ADRXzfgmtdbKyrpyjy$71.1 Bil
FIS
Fidelity National Information Services IncBxdyztdmMgptt$40.1 Bil
CTSH
Cognizant Technology Solutions Corp Class AKcksrbhwwVpyjzb$33.3 Bil
WIT
Wipro Ltd ADRXsvnjfslTvjgbb$29.1 Bil
GIB
CGI Inc Class AYkxylmtRrvkm$24.0 Bil
BR
Broadridge Financial Solutions IncZgqmgqhhNkrgtj$22.9 Bil
EPAM
EPAM Systems IncDlnygfhVmjxwm$13.7 Bil

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