Formula Systems (1985) Ltd.

Fundamentals8.0
Price Action4.5
News Sentiment5.5
AI Rating
6.8

Key Drivers

  • Strong cash generation
  • Deep value metrics
  • Margin inconsistency

AI
AI Summary

6.8

FORTY now looks more like a low-priced, cash-rich value play than a pure software growth story, and the key test is whether post-Sapiens earnings and free cash flow stay durable enough to justify a rerating from its depressed multiples; if they do, upside is meaningful, but if margins normalize lower the current valuation could prove misleading.

Value
EarningsRisk
CashFlow‍

Price Chart

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Financial Metrics

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Revenue (TTM)
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Net Income (TTM)
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EPS (Q)
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MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

8.0

Key Financial Insights:

  • Strong cash generation
  • Deep value metrics
  • Margin inconsistency

FORTY looks attractively valued with strong profitability, liquidity, and cash flow, but thinner core margins and uneven quarterly performance warrant caution.

Undervalued
CashFlow

Price Behavior

4.5
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Breakout Failure
  • Lower High
  • Support Test

FORTY rallied strongly off a late-April base but has since reversed sharply, leaving the stock slightly lower over the last month and vulnerable unless it quickly reclaims the $141 area.

reversal
watch
Support Level: $132.48-$135.70
Resistance Level: $141.44-$148.30

Surged from $128.81 to $148.30, then reversed sharply to $133.74

Sentiment & News

5.5

Key News Insights:

  • Special dividend
  • Overvaluation concern
  • Short interest rise

FORTY drew attention as it looked overvalued, saw a sharp but still small rise in short interest, and announced a hefty $13.045 per-share special dividend tied to the Sapiens deal.

Dividend
Valuation

The large cash return is a clear positive for shareholders, but valuation concerns and rising short positioning could keep volatility elevated