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Formula Systems (1985) LTD (FORTY) stock

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NASDAQ: FORTY Nasdaq IT Consulting & Other Services Next results ~November 19, 2026

B+ Fundamentals grade

Formula Systems (1985) LTD is a US-listed company in the IT consulting & other services industry. Its financial year ends in December.

Stock price today

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Third-party market data · may be delayed

Fair value per share

Under review: our cash-flow value ($543.58) is 4.56x the share price ($119.21); a gap this wide almost always means a data problem.

Price vs value

Under review: our cash-flow value ($543.58) is 4.56x the share price ($119.21); a gap this wide almost always means a data problem. We'll show the comparison once resolved.

Formula Systems (1985) LTD valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

  • Funds2 adding, 7 cuttingOf 0 active managers that changed their stake, 0 added; quarter to June 30, 2026Fund buyers and sellers

Value diary

Our note on each quarter Formula Systems (1985) files

Where Formula Systems (1985) LTD stands after its latest Filing

Revenue for the twelve months was $2.63bn, up 18.4% on a year earlier, faster than the 5.1% growth a quarter earlier. That growth ranks 8 of 40 among the it consulting & other services companies we cover. Free-cash-flow margin rose to 13.9% from 7.9% a year earlier. Against its peers on growth, profitability, cash generation and balance sheet, it grades B+. It passes 4 of our 4 financial-health checks.

Our model value for Formula Systems (1985) is under review, so past values are not shown until it is resolved.

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~November 19, 2026 (estimated)

Formula Systems (1985) LTD's trailing-twelve-month revenue grew 18.4% year on year, with a free-cash-flow margin of 13.9%. Where it stands out: net margin of 23.1% ranks 1 of 40 it consulting & other services companies we cover.

Our discounted-cash-flow model values the business at ~$540 per share in the base case (~$420–$710 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Free cash flow diverging from earnings: TTM free cash flow grew 18.6% while net income grew 661.2%: a 643pp divergence.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Fast growth. Revenue grew 18.4% over the last 12 months, against a median of 6.5% for it consulting & other services companies we cover.
  • Growth speeding up. The growth rate is 13.3 points higher than a quarter earlier.
  • Net cash. Cash exceeds long-term debt by $1.2bn.

Things to watch

  • Weak cash conversion. Free cash flow was 60% of net income over the last 12 months.

Latest results

Next report
November 19, 2026

Formula Systems (1985)'s figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day-2.3%
  • 1 week-8.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

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Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$2.6B
Net margin
23.1%
EPS (TTM, diluted)
$38.42

Growth

Revenue growth
+18.4%
Change in growth rate
+13.3 pts
Share count change
+1.0%

Cash

Free cash flow (TTM)
$364M
FCF margin
13.9%
Stock pay % of revenue
1.2%

News & updates

Updated November 2, 2026

Company announcements, filed results and changes that matter to shareholders.

No recent updates are available for FORTY from the sources we follow. See filings →

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Formula Systems (1985) LTD valuation models and calculator

Fundamentalytics rating

model v1.6 · 2026-11-03

Not rated: held for review: our cash-flow value ($543.58) is 4.56x the share price ($119.21); a gap this wide almost always means a data problem.

Our value per share comes from a discounted-cash-flow model of Formula Systems (1985) LTD's free cash flow after stock-based pay ( $340M, FY2025 Q4 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

The inputs used by the models below have passed source checks. Individual model values are available below and in the interactive valuator. Their differences are shown explicitly; the platform combined value and recommendation remain withheld.

Valuation models

We value Formula Systems (1985) LTD as an operating company, with every model that fits that kind of business. Cost of equity 9.6%: the 10-year Treasury yield (4.9%) plus a beta of 1.03 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$540 ~$420–$710 Primary model, counts double
Price-to-earnings vs peers Earnings per share times peers' typical (harmonic-mean) price-to-earnings. ~$490 ~$530–$970 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. ~$350 ~$250–$510 Included
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$250 ~$220–$300 Included
Combined value Individual source-checked model scenarios are available. The platform combined value and recommendation remain withheld. — Combined value withheld. Review the individual models and their assumptions.

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Formula Systems (1985) LTD with IT Consulting & Other Services in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

Moat

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: High.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Next results: November 19, 2026, after the close.

Analysts' consensus

No analyst estimates are published for Formula Systems (1985) LTD: too few analysts cover it.

Positioning

Short interest
0.0%
of tradable shares
Days to cover
1.97
at average volume
Short interest, 1 month
+751%
to October 15, 2026
Held by institutions
14%
of shares
Held by insiders
0.0%
of shares
Employees
19,337
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

Recent prices are available. Older price history and the statistics that need it are being loaded in the background.

Price behaviour

52-week range
Not enough history
From 52-week high
—
vs 50-day average
—
vs 200-day average
—
Volatility (1 year)
—
Beta vs S&P 500
—

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Formula Systems (1985) LTD in five measures

Fundamentals grade B+
Growth Profitability Cash Balance sheet

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Formula Systems (1985) LTD
$500M $1B $1.5B $2B $2.5B $3B FY15 Q4 FY17 Q4 FY19 Q4 FY21 Q4 FY23 Q4 FY25 Q4 Revenue (TTM), FY15 Q4: $973.2M Revenue (TTM), FY16 Q4: $1.1B Revenue (TTM), FY17 Q4: $1.4B Revenue (TTM), FY18 Q4: $1.5B Revenue (TTM), FY19 Q4: $1.7B Revenue (TTM), FY20 Q4: $1.9B Revenue (TTM), FY21 Q4: $2.4B Revenue (TTM), FY22 Q4: $2.6B Revenue (TTM), FY23 Q4: $2.1B Revenue (TTM), FY24 Q4: $2.2B Revenue (TTM), FY25 Q4: $2.6B $2.6B

Source: SEC EDGAR filings. Retrieved November 1, 2026.

View chart data
Period Revenue (TTM)
FY15 Q4 $973.2M
FY16 Q4 $1.1B
FY17 Q4 $1.4B
FY18 Q4 $1.5B
FY19 Q4 $1.7B
FY20 Q4 $1.9B
FY21 Q4 $2.4B
FY22 Q4 $2.6B
FY23 Q4 $2.1B
FY24 Q4 $2.2B
FY25 Q4 $2.6B
Revenue growth, TTM YoY Formula Systems (1985) LTD
-20% 0% 20% 40% FY16 Q4 FY18 Q4 FY20 Q4 FY22 Q4 FY25 Q4 Revenue growth, TTM YoY, FY16 Q4: 13.9% Revenue growth, TTM YoY, FY17 Q4: 22.2% Revenue growth, TTM YoY, FY18 Q4: 10.2% Revenue growth, TTM YoY, FY19 Q4: 13.9% Revenue growth, TTM YoY, FY20 Q4: 13.7% Revenue growth, TTM YoY, FY21 Q4: 24.3% Revenue growth, TTM YoY, FY22 Q4: 7.0% Revenue growth, TTM YoY, FY23 Q4: -18.0% Revenue growth, TTM YoY, FY24 Q4: 5.1% Revenue growth, TTM YoY, FY25 Q4: 18.4% 18.4%

Source: SEC EDGAR filings. Retrieved November 1, 2026.

View chart data
Period Revenue growth, TTM YoY
FY16 Q4 13.9%
FY17 Q4 22.2%
FY18 Q4 10.2%
FY19 Q4 13.9%
FY20 Q4 13.7%
FY21 Q4 24.3%
FY22 Q4 7.0%
FY23 Q4 -18.0%
FY24 Q4 5.1%
FY25 Q4 18.4%
Operating margin (TTM) Formula Systems (1985) LTD
5% 6% 7% 8% 9% FY15 Q4 FY16 Q4 FY17 Q4 FY18 Q4 FY19 Q4 FY20 Q4 Operating margin (TTM), FY15 Q4: 7.8% Operating margin (TTM), FY16 Q4: 8.0% Operating margin (TTM), FY17 Q4: 5.4% Operating margin (TTM), FY18 Q4: 7.3% Operating margin (TTM), FY19 Q4: 8.1% Operating margin (TTM), FY20 Q4: 8.8% 8.8%

Source: SEC EDGAR filings. Retrieved November 1, 2026.

View chart data
Period Operating margin (TTM)
FY15 Q4 7.8%
FY16 Q4 8.0%
FY17 Q4 5.4%
FY18 Q4 7.3%
FY19 Q4 8.1%
FY20 Q4 8.8%
FCF margin (TTM) Formula Systems (1985) LTD
0% 5% 10% 15% FY15 Q4 FY17 Q4 FY19 Q4 FY21 Q4 FY23 Q4 FY25 Q4 FCF margin (TTM), FY15 Q4: 8.2% FCF margin (TTM), FY16 Q4: 5.9% FCF margin (TTM), FY17 Q4: 5.3% FCF margin (TTM), FY18 Q4: 4.7% FCF margin (TTM), FY19 Q4: 10.0% FCF margin (TTM), FY20 Q4: 13.9% FCF margin (TTM), FY21 Q4: 7.9% FCF margin (TTM), FY22 Q4: 8.3% FCF margin (TTM), FY23 Q4: 13.1% FCF margin (TTM), FY24 Q4: 13.8% FCF margin (TTM), FY25 Q4: 13.9% 13.9%

Source: SEC EDGAR filings. Retrieved November 1, 2026.

View chart data
Period FCF margin (TTM)
FY15 Q4 8.2%
FY16 Q4 5.9%
FY17 Q4 5.3%
FY18 Q4 4.7%
FY19 Q4 10.0%
FY20 Q4 13.9%
FY21 Q4 7.9%
FY22 Q4 8.3%
FY23 Q4 13.1%
FY24 Q4 13.8%
FY25 Q4 13.9%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 20-F, 20-F/A. Generated November 3, 2026. Definitions in our methodology.

Financial statements

US$ millions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2015 Dec 2015 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025
Income
Revenue 973 1,109 1,355 1,493 1,701 1,934 2,404 2,572 2,110 2,218 2,627
Gross profit 232 259 297 333 386 447 564 622 421 446 519
EBITDA 106 121 116 158 225 266 — — — — —
Operating income 76 89 73 110 138 171 — — — — —
Net income 20 22 10 32 39 47 55 81 64 80 606
Diluted EPS $1.33 $1.49 $0.68 $2.14 $2.44 $3.01 $3.50 $5.21 $4.12 $5.09 $38.39
Growth (year on year)
Revenue — +13.9% +22.2% +10.2% +13.9% +13.7% +24.3% +7.0% −18.0% +5.1% +18.4%
EBITDA — +13.7% −3.7% +36.0% +42.4% +18.1% — — — — —
Operating income — +16.7% −17.7% +50.6% +26.3% +23.2% — — — — —
Net income — +13.2% −53.9% — +19.9% +20.5% +16.7% +49.1% −21.4% +24.5% +661.2%
Diluted EPS — +12.0% −54.4% — +14.0% +23.4% +16.3% +48.9% −20.9% +23.5% +654.2%
Margins
Gross margin 23.8% 23.3% 21.9% 22.3% 22.7% 23.1% 23.5% 24.2% 20.0% 20.1% 19.8%
EBITDA margin 10.9% 10.9% 8.6% 10.6% 13.3% 13.8% — — — — —
Operating margin 7.8% 8.0% 5.4% 7.3% 8.1% 8.8% — — — — —
Net margin 2.0% 2.0% 0.8% 2.2% 2.3% 2.4% 2.3% 3.2% 3.0% 3.6% 23.1%
Free-cash-flow margin 8.3% 5.9% 5.3% 4.8% 10.2% 14.0% 8.0% 8.4% 13.2% 13.9% 13.9%
Cash flow
Cash from operations 87 75 81 83 196 288 209 239 295 324 382
Capital spending 7 9 10 12 22 17 17 22 17 16 16
Free cash flow 80 66 72 71 174 271 192 217 278 308 366
Stock-based pay 5 4 5 4 4 8 15 15 19 16 31
Free cash flow after stock pay 75 61 67 67 170 264 177 202 260 292 335
Balance sheet
Cash 249 240 246 268 369 502 485 544 452 508 1,280
Total debt 0 0 0 0 0 0 0 0 316 309 363
Net debt (negative = net cash) −249 −240 −246 −268 −369 −502 −485 −544 −136 −198 −917
Diluted shares — — — — — — — 16m 15m 16m 16m

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

4 of 4 checks passed · December 31, 2025
What it owns · $3.6bn
Short-term assets $2.2bnLonger-term assets $1.4bn
What it owes, and who funded it · $2.7bn
Short-term liabilities $1.3bnShareholders' equity $1.4bn
  • Short-term assets cover short-term liabilities $2.2bn of assets due within a year against $1.3bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt $1.3bn of cash against $363m of debt.
  • Debt below 40% of shareholders' equity Debt is 27% of equity.
  • Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
  • A year's operating cash flow covers at least 20% of debt $382m of operating cash flow against $363m of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Formula Systems (1985) LTD's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

Diluted share count
+1.0%
year over year
R&D spending
0.8%
of revenue

Competitors: side by side with peers

Closest by revenue in it consulting & other services
Last 12 months unless stated FORTY GLOB EXLS UIS GDS G Median
Revenue, last 12 months $2.6bn $2.5bn $2.3bn $1.9bn $1.6bn $5.3bn $383m
Revenue growth, last 12 months 18.4% 1.6% 15.6% −0.6% 10.9% 6.5% 5.7%
Revenue growth, 3-year average — — 13.7% −1.1% — 6.0% 4.3%
Revenue growth, latest quarter — — 19.7% −2.0% — 7.1% 4.7%
Gross margin 19.8% 35.0% 38.4% 27.8% 22.6% 36.5% 28.0%
Operating margin 8.8% 7.0% 14.8% 1.4% −0.5% 14.8% 5.9%
Operating margin, 3-year average — 8.7% 14.6% 3.2% 4.0% 14.7% 7.5%
Net margin 23.1% 4.2% 11.1% −21.7% 8.3% 11.1% 2.2%
Cash from operations / revenue 14.5% 12.3% 13.9% 5.8% 29.4% 12.3% 6.7%
Free-cash-flow margin 13.9% 11.5% 11.6% 3.9% −11.6% 10.5% 5.0%
Free-cash-flow margin, 3-year average 9.0% 9.2% 12.2% −2.1% −79.0% 10.6% 6.7%
Stock pay / revenue 1.2% 3.1% 4.0% 0.6% 2.5% 1.8% 2.2%
Change in share count 1.0% 0.9% −4.9% 2.5% 11.5% −2.8% 0.9%

Median of all 40 companies we cover in it consulting & other services. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

40 it consulting & other services companies
Measure Company Peer median Rank
Revenue growth Growth 18.4% 6.5% 8 of 40
Change in growth rate Growth +13.3pp -0.8pp 5 of 40
Gross margin Profitability 19.8% 28.2% 23 of 34
Net margin Profitability 23.1% 2.5% 1 of 40
Free-cash-flow margin Cash generation 13.9% 5.1% 6 of 38
Stock pay as % of revenue Cash generation 1.2% 2.3% 13 of 36
Long-term debt as % of assets Balance sheet 3.5% 11.8% 9 of 27
Change in share count Balance sheet 1.0% 0.9% 21 of 39

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Who owns it

Funds buying and selling
Reported value
$82.9M
Institutions reporting
13
Shares held vs prior quarter
▼ 6.3%
Positions opened / closed
1 / 2

Top buyers and sellers, Q2 2026: 2 institutions bought and 7 sold ; the biggest buyer was Royal Bank Of Canada (+500 shares) and the biggest seller Clal Insurance Enterprises Holdings Ltd (−47K). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Clal Insurance Enterprises Holdings Ltd $80.9M 778K 97.6% ▼ 5.7%
Ghp Investment Advisors, Inc. $787,110 8K 0.9% 0.0%
Dimensional Fund Advisors LP $344,561 3K 0.4% 0.0%
Morgan Stanley $276,141 3K 0.3% 0.0%
Altshuler Shaham Ltd $231,378 3K 0.3% ▼ 66.9%
Cx Institutional $188,000 2K 0.2% ▼ 14.6%
Blackrock, Inc. $69,367 1K 0.1% 0.0%
Royal Bank Of Canada $51,000 1K 0.1% New
BNP Paribas Financial Markets $10,394 0K 0.0% 0.0%
Harel Insurance Investments & Financial Services Ltd. $8,000 0K 0.0% 0.0%
UBS Group AG $5,815 0K 0.0% ▼ 55.1%
Osaic Holdings, Inc. $714 0K 0.0% ▲ 40.0%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Formula Systems (1985) LTD's complete shareholder register. Values are as reported by the filers .

Insider trading activity

Full insider history and chart
Insider purchases History → $0 0 trades by 0 insiders, last 12 months Insider sales History → $0 0 trades by 0 insiders
Net ▲ $0 net buying

No open-market insider trades reported in the last 12 months.

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Data status

When each part of this page on Formula Systems (1985) LTD was last updated.

DataLast updatedSource
Share priceExchange closing prices
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Formula Systems (1985) LTD in brief

What does Formula Systems (1985) LTD do?
Formula Systems (1985) LTD is a US-listed company in the IT consulting & other services industry. Its financial year ends in December.
What is Formula Systems (1985) LTD's stock ticker?
Formula Systems (1985) LTD trades under the ticker FORTY on Nasdaq. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Formula Systems (1985) LTD's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Formula Systems (1985) LTD reported revenue of $2.6B, 18.4% higher than a year earlier, according to its SEC filings.
What is Formula Systems (1985) LTD's free cash flow?
Formula Systems (1985) LTD's free-cash-flow margin is 13.9% of revenue over the trailing twelve months, ranking 6 of the 38 it consulting & other services companies we cover.
Who are Formula Systems (1985) LTD's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Clal Insurance Enterprises Holdings Ltd, Ghp Investment Advisors, Inc. and Dimensional Fund Advisors LP. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
How much debt does Formula Systems (1985) LTD have?
Formula Systems (1985) LTD's debt-to-equity ratio is 26.8%, from its latest balance sheet. The financial health section below sets out its other solvency checks.
Who are Formula Systems (1985) LTD's competitors?
In our IT Consulting & Other Services peer group, the companies closest to Formula Systems (1985) LTD are Globant S.a., Exlservice Holdings, Inc., Unisys Corp, GDS Holdings Ltd and Genpact LTD. The side-by-side comparison below sets their revenue, margins and growth against Formula Systems (1985) LTD's.
When is Formula Systems (1985) LTD's next earnings date?
Around November 19, 2026, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Formula Systems (1985) LTD announces its own schedule.