QualityDipStocks / Technology · IT services
Formula Systems FORTY
Outside our quality screen, so we don’t track its dips. It’s 37% below its 52-week high.
Outside our quality screen. No fair value estimate for now: the model’s result is too extreme to stand behind.
Worth knowing
- FCF yield 19%, top 2% of the 1322 we measure
- Down 37% from its 52-week high while revenue grew 18%
From the data on this page, as of the last close. How we pick these
- Fair value est.
- n/a
- Market Value
- —
- Off 52-wk high
- −37%
- Risk vs market
- Lowbeta 0.56
52-week range 19% of the way from its 52-week low to its high
Price $119.21
4 bullish · 3 bearish See why
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
Estimate unreliable for FORTY: the model gives 397% above the price, more than we can stand behind (usually peak-cycle cash flow, heavy debt, or cash flows that include customer or loan balances). We’d rather show nothing than a made-up number.
What the price implies To be worth today’s price, FORTY’s free cash flow would need to shrink about 17% a year for five years; our estimate uses 12%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much FORTY moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 4.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.56
- Volatility
- 51% vs 13% SPY
- Correlation SPY
- 0.14
- Correlation QQQ
- 0.16
How it ranks
Where FORTY stands vs every one of the 2,467 stocks we cover that has the number. Longer bar = better.
Top quarter on 1 of 3 measures
- Free cash flow yield19% · free cash flow vs market capTop 3%of 1,690
- Dividends + buybacks yield0% · cash paid out or used to retire shares, vs market capLowest 1%of 2,227
- Revenue growth, last 12 months+18% · vs the 12 months beforeTop 28%of 2,184
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ValuationFree-cash-flow yield of 19.4% (price / FCF 5.1×): $366M of free cash in the last 12 months.
ValuationP/E of 3.1× vs a 33.2× median for the 254 Technology companies we cover.
GrowthSales grew 18% to $2.6B over the last 12 months vs the 12 months before (SEC filings).
Cash returnsFree cash flow grew 19% over the last 12 months vs the 12 months before.
Top bearish points 3 of 5
ProfitabilityGross margin of 20%, below the 57% median for the 308 Technology companies we cover.
GrowthSales grew 0.7% a year over the last three fiscal years, below the 10% median for the 333 Technology companies we cover.
QualityDoesn’t pass our quality screen: no cash-flow data.
All fundamentals
P/E 3.1 · FCF yield 19.4% · Sales +18%
Valuation
- P/E
- 3.1×Technology median 33.2×
- Price / FCF
- 5.1×
- FCF yield
- 19.4%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 0.72×
- Price / book
- n/anot reported in its SEC filings
- Market cap
- $1.9Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $2.6B
- Sales growth, 12 months
- +18.4%vs the 12 months before
- Sales growth, 3 yrs
- +0.7%/yrfrom FY2022
- Diluted EPS, 12 months
- $38.39
- EPS growth, last FY
- n/an/m: EPS a year ago near zero
- Net income, 12 months
- $606M
- Net income growth
- n/an/m: earnings a year ago near zero
Profitability
- Gross margin
- 19.8%
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 23.1%
- FCF margin
- 13.9%
- Return on equity
- n/anot reported in its SEC filings
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- n/anot reported in its SEC filings
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $366M
- FCF growth, 12 months
- +19%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Dec 31, 2025. From Formula Systems’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
Sales +5%
- Gross margin20%
- Operating margin9%
- Return on invested capital21%
- Return on equity10%
- Sales growth (latest quarter vs year-ago quarter)+5%
- Net debt / EBITDA−0.6×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $119.21
- 52-wk lowlowest close, 1 year$102.01−14.4%
- PriceMon Nov 2 close$119.21you are here
- 52-wk highhighest close, 1 year$190.56+59.9%
Momentum & 52-week range
RSI 50 · 5 days −8.2%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Next report
Nov 19
- DateThu Nov 19
- Year-ago EPS$0.73
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
FORTY is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Formula Systems in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 5:14 PM ET.
Compare with peers
Closest in size in IT services
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.