Formula Systems (1985) Ltd. (FORTY) Análisis de acciones

Descripción de la empresa

Formula Systems (1985) Ltd. operates as a provider of proprietary and non-proprietary software solutions alongside information technology professional services across global markets including Israel, the United States, Europe, Africa, Japan, and other international regions. The company functions within the Technology sector, specifically the Information Technology Services industry, where it delivers specialized digital infrastructure and support to diverse clients. As of the latest reporting period, the enterprise maintains a market capitalization of $1.91B and generates annual revenue of $2.63B, while the specific employee count is not disclosed in available data. These valuation and revenue figures indicate that the company holds a substantial position in the global IT services landscape, reflecting significant scale and market presence despite the lack of public headcount data. The size of the market cap relative to its revenue base suggests a high multiple valuation, characteristic of technology firms where intellectual property and service contracts often drive market perception beyond simple accounting metrics.

Salud financiera

The company reported revenue of $2.63B over the trailing twelve months, with a corresponding net income of $38.65M and an EBITDA of $241.94M. The substantial disparity between the $2.63B in revenue and the $38.65M in net income reveals a cost structure where operating expenses significantly erode bottom-line profitability, leaving a profit margin of 23.1% which appears elevated relative to the net income figure but requires careful scrutiny against the operating margin. While free cash flow data is not currently available for citation, the company holds $1.28B in cash against $592.26M in debt, suggesting a strong liquidity position that provides considerable financial flexibility for operational needs or strategic investments. The gross margin stands at 19.8%, indicating the percentage of revenue remaining after direct costs, while the operating margin of 5.9% reflects the efficiency of core business operations before interest and taxes. The profit margin of 23.1% is notably higher than the operating margin, which may suggest specific accounting adjustments or non-operating income contributions affecting the final bottom line. The balance sheet appears conservative given the $1.28B cash reserve substantially exceeds the $592.26M debt load, supported by a debt-to-equity ratio of 32.93% which indicates low leverage relative to shareholders' equity. Short-term liquidity is robust, evidenced by a current ratio of 1.63, meaning the company possesses $1.63 in current assets for every $1.00 of current liabilities. Management effectiveness is measured by a return on equity of 6.9% and a return on assets of 3.7%, metrics that show the company generates modest returns on the capital invested by shareholders and utilized in its asset base.

Evaluación de valoración

The trailing twelve-month P/E ratio is 54.11, whereas the forward P/E is not available for citation, implying that analysts may have limited visibility into expected earnings trajectory or that forward estimates are not currently standardized for this security. The price-to-book ratio of 1.40 indicates that the market values the company at 1.4 times its book value, suggesting a moderate premium over the net asset value recorded on the balance sheet. Alternative valuation metrics include a price-to-sales ratio of 0.73 and an EV/EBITDA of 6.83, which together suggest the stock is valued at less than one dollar of sales per dollar of revenue and at a relatively low multiple of earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week low of $84.52 and a 52-week high of $190.56, placing the current trading level within this historical range and subject to volatility. The beta value of 0.17 is significantly below 1.0, indicating that the stock's price volatility is low relative to the broader market movements, as it tends to move less than half the magnitude of the general market index. This low beta suggests the asset may serve as a stabilizer in a diversified portfolio, though the high P/E ratio suggests the market is pricing in significant future growth expectations not yet reflected in current earnings.

Growth & Income

Revenue growth year-over-year is 2.4%, while earnings growth year-over-year is 2645.3%, indicating that earnings are expanding at a rate vastly exceeding revenue growth, which often signals a one-time event, a restatement, or a sharp normalization of earnings rather than sustainable operational scaling. The company offers a dividend yield of 2.0% with a payout ratio of 107.1%, meaning the dividends paid exceed the reported net income for the period, which raises questions about the sustainability of the current dividend level without significant cash flow support or retained earnings accumulation. Given the payout ratio exceeding 100%, the company is effectively distributing more cash to shareholders than it is retaining from current net income, relying heavily on its substantial cash reserves to maintain the dividend. Overall, the growth and income profile presents a unique dichotomy where earnings show explosive theoretical growth while revenue expands modestly, and income distribution relies on a payout mechanism that outpaces current profitability.