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Formula Systems (1985) Ltd.

Formula Systems (1985) Ltd.

NASDAQ•FORTY
CEO: Ms. Maya Solomon-Ella
Sector: Technology
Industry: Information Technology Services
Listing Date: 1997-10-20
Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, Information Technologies (IT) professional services, software product marketing and support, computer infrastructure and integration solutions, and learning and integration. It offers IT software solutions and services, and consulting and management services; computer and communication infrastructure solutions; software solutions, web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; and developers and professional training, and soft skills and management training services. The company also provides property and casualty insurance platforms, such as Sapiens CoreSuite and Sapiens IDITSuite; life, pension, and annuities platforms, including Sapiens, Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster; Sapiens Cloud-based DigitalSuite; data and analytics platform; and reinsurance software solutions comprising Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO. In addition, it offers Sapiens workers' compensation solutions; Sapiens medical professional liability solutions; financial and compliance solutions, such as Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro, and Sapiens Reporting Tools; Sapiens Decision, an enterprise-scale platform; technology-based solutions; application development and business process integration platforms; vertical software solutions; cloud-based services; strategic consulting and outsourcing services; and professional services, as well as sells and markets computers and peripheral equipment, and cloud computing solutions. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.
Contact Information
Terminal Center, Yahadut Canada 1 Street, Or Yehuda, 6037501, Israel
972-3-538-9389
www.formulasystems.com
Market Cap
$2.45B
P/E (TTM)
31.1
25.2
Dividend Yield
2.9%
52W High
$174.97
52W Low
$80.05
52W Range
84%
5.8
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 5.8 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q2 2025 Data

Revenue

$743.37M+11.34%
4-Quarter Trend

EPS

$0.98-20.32%
4-Quarter Trend

FCF

$0.00+0.00%
4-Quarter Trend

2024 Annual Earnings Highlights

Key Highlights

Total Revenue Growth Total revenues reached $2.76B in 2024, up $136.6M; software services revenue grew 5.5% to $2.03B.
Operating Income Improvement Operating income was $270.5M in 2024, reflecting a $31.2M increase; net income reached $193.8M.
Strong Operating Cash Flow Cash provided by operations totaled $324.5M in 2024, up $29.5M; significant M&A activity executed across subsidiaries.
Acquisition Strategy Execution Completed multiple acquisitions across Sapiens, Matrix, and Michpal to enhance product portfolios and expand market reach.

Risk Factors

M&A Integration Challenges Failure to successfully integrate multiple acquired companies may adversely affect future operating results and profitability.
Macroeconomic Headwinds Lingering inflation and high interest rates could adversely impact customer capital expenditure budgets and slow sales cycles.
Cybersecurity Threat Exposure Reliance on cloud solutions heightens potential exposure to cyber-attacks; breaches could cause operational disruption and financial losses.
Geopolitical Instability Risks Ongoing war and hostilities in Israel may hinder ongoing operations and negatively affect revenue streams from local government contracts.

Outlook

Continue M&A Growth Expect to continue pursuing acquisitions to grow customer base and expand complementary solution offerings globally.
AI and Technology Investment Significant future investment planned for developing and deploying AI, ML, and Generative AI capabilities across core platforms.
Subsidiary Merger Negotiation Matrix and Magic Software are negotiating a definitive merger agreement via a reverse triangular structure, pending approvals.
Focus on Cloud Deployment Focus on enhancing cloud-first deployment models and leveraging specialized technology expertise for sustained competitive advantage.

Peer Comparison

Revenue (TTM)

DXC Technology CompanyDXC
$12.71B
-4.1%
ASGN IncorporatedASGN
$3.99B
-4.9%
Formula Systems (1985) Ltd.FORTY
$2.89B
+8.6%

Gross Margin (Latest Quarter)

Clarivate PlcCLVT
65.0%
-1.3 pp
Vicor CorporationVICR
57.5%
+8.4 pp
Sapiens International Corporation N.V.SPNS
43.7%
-1.4 pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
VICR$4.01B48.413.8%1.0%
GLOB$2.69B24.15.6%15.8%
FORTY$2.45B31.111.4%21.4%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
+2.0%
Moderate Growth
4Q Net Income CAGR
-13.9%
Declining Profitability
Cash Flow Stability
0%
Cash Flow Needs Attention

Research & Insights

Reports
All Years

  • Form 20-F - FY 2024

    Period End: Dec 31, 2024|Filed: May 15, 2025|
    Revenue: $2.76B+5.2%
    |
    EPS: $5.21+24.9%
    N/A

  • Form 20-F - FY 2023

    Period End: Dec 31, 2023|Filed: May 15, 2024|
    Revenue: $2.62B+1.9%
    |
    EPS: $4.17-21.5%
    N/A

  • Form 20-F/A - FY 2022

    Period End: Dec 31, 2022|Filed: Dec 11, 2023|
    Revenue: $2.57B+6.9%
    |
    EPS: $5.31+48.7%
    N/A

  • Form 20-F - FY 2022

    Period End: Dec 31, 2022|Filed: May 15, 2023|Refer to amended data

  • Form 20-F/A - FY 2021

    Period End: Dec 31, 2021|Filed: May 17, 2022|
    Revenue: $2.41B+24.4%
    |
    EPS: $3.57+17.0%
    N/A

  • Form 20-F - FY 2021

    Period End: Dec 31, 2021|Filed: May 16, 2022|Refer to amended data

  • Form 20-F - FY 2020

    Period End: Dec 31, 2020|Filed: May 17, 2021|
    Revenue: $1.93B+13.7%
    |
    EPS: $3.05-50.0%
    N/A