Formula Systems (1985) Ltd. (FORTY) Analyse boursière

Présentation de l'entreprise

Formula Systems (1985) Ltd. operates as a provider of proprietary and non-proprietary software solutions alongside information technology (IT) professional services, serving clients across Israel, the United States, Europe, Africa, Japan, and various international markets. The company functions within the Technology sector, specifically categorized under the Information Technology Services industry, which implies a business model focused on delivering specialized digital infrastructure and technical expertise rather than manufacturing physical goods. This entity manages a substantial market capitalization of $1.91B and generates annual revenue reaching $2.63B, though specific employee count data is not disclosed in the available records. The combination of a nearly two-billion dollar market cap and revenue exceeding $2.6 billion positions Formula Systems as a significant player in the global IT services landscape, indicating a large-scale operation capable of sustaining complex international service delivery and software development operations simultaneously.

Santé financière

The company reported a trailing twelve-month revenue of $2.63B with a corresponding net income of $38.65M and an EBITDA of $241.94M, highlighting a distinct gap between top-line revenue and bottom-line profit that reveals a substantial cost structure burdening net earnings relative to operating earnings. While the free cash flow metric is listed as N/A, the available cash balance stands at $1.28B, suggesting a robust liquidity position that provides significant financial flexibility for operational expenditures and strategic initiatives despite the lack of explicit free cash flow reporting. The gross margin sits at 19.8%, the operating margin at 5.9%, and the profit margin at 23.1%, a configuration where the high profit margin relative to the operating margin suggests specific accounting adjustments or non-operating income components significantly influence the final profitability picture. When comparing total cash of $1.28B against total debt of $592.26M, the balance sheet appears conservative with a debt-to-equity ratio of 32.93, indicating that while leverage exists, the cash reserves are nearly double the debt obligation. The current ratio is recorded at 1.63, which indicates a healthy short-term liquidity position where current assets exceed current liabilities by a comfortable margin. Furthermore, the Return on Equity is 6.9% and the Return on Assets is 3.7%, metrics that reveal management's effectiveness in generating returns on shareholder capital and utilizing the company's asset base, respectively, though the ROA remains moderate relative to the high profit margin.

Évaluation de la valorisation

The trailing P/E ratio is 54.11, while the forward P/E is listed as N/A, implying that forward-looking earnings estimates are not currently quantifiable or available for this specific reporting period. The price-to-book ratio stands at 1.40, indicating that the market values the company at 40% above its net asset book value, which often reflects intangible assets or brand equity not fully captured on the balance sheet. Alternative valuation metrics include a price-to-sales ratio of 0.73 and an EV/EBITDA of 6.83, suggesting that the stock is valued at less than one dollar of revenue per dollar of sales, which can indicate a potentially attractive entry point relative to sales volume despite the high earnings multiple. The 52-week trading range spans from a low of $84.52 to a high of $190.56, and without a specific current price provided in the facts, the valuation context relies on these historical boundaries to define the asset's volatility range. The beta value is 0.17, which signifies that the stock price exhibits very low volatility relative to the broader market, moving in a counter-cyclical or defensive manner compared to the overall equity index.

Growth & Income

Revenue growth over the last year is 2.4%, whereas earnings growth reaches an extraordinary 2645.3%, indicating that earnings are growing significantly faster than revenue, which implies a one-time gain, asset write-up, or significant non-recurring income event affecting the profit line disproportionately. The company offers a dividend yield of 2.0% with a payout ratio of 107.1%, meaning the dividend paid exceeds the reported net income, which raises questions regarding the sustainability of the dividend if future earnings do not grow to match the current payout levels. Given the high payout ratio exceeding 100%, the company is effectively distributing more in dividends than its current net income supports, suggesting reliance on cash reserves or non-cash earnings components to fund the distribution. Summarizing the overall profile, Formula Systems presents a unique combination of a highly leveraged earnings growth rate and a dividend yield that exceeds the current net income, creating a complex income growth dynamic for analysts reviewing the financial statements.