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Upturn AI SWOT - About
FORTY 
Formula Systems 1985 Ltd ADR (FORTY)
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Upturn Advisory Summary
03/24/2025: FORTY (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -25.53% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/24/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.27B USD | Price to earnings Ratio 19.15 | 1Y Target Price - |
Price to earnings Ratio 19.15 | 1Y Target Price - | ||
Volume (30-day avg) 829 | Beta 0.45 | 52 Weeks Range 68.04 - 100.00 | Updated Date 03/30/2025 |
52 Weeks Range 68.04 - 100.00 | Updated Date 03/30/2025 | ||
Dividends yield (FY) 1.52% | Basic EPS (TTM) 4.32 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-03-17 | When Before Market | Estimate - | Actual - |
Profitability
Profit Margin 2.53% | Operating Margin (TTM) 9.74% |
Management Effectiveness
Return on Assets (TTM) 5.67% | Return on Equity (TTM) 13.42% |
Valuation
Trailing PE 19.15 | Forward PE - | Enterprise Value 1369993629 | Price to Sales(TTM) 0.5 |
Enterprise Value 1369993629 | Price to Sales(TTM) 0.5 | ||
Enterprise Value to Revenue 0.51 | Enterprise Value to EBITDA 5.24 | Shares Outstanding 15332700 | Shares Floating 9502168 |
Shares Outstanding 15332700 | Shares Floating 9502168 | ||
Percent Insiders - | Percent Institutions 12.68 |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Formula Systems 1985 Ltd ADR
Company Overview
History and Background
Formula Systems (1985) Ltd. was founded in 1985 and is headquartered in Or Yehuda, Israel. It is an investment holding company that focuses on IT companies. They are a global information technology company that invests in a range of IT companies, primarily in Israel.
Core Business Areas
- Software Solutions: Provides a range of software solutions for diverse industries including enterprise resource planning, customer relationship management, and business intelligence.
- IT Infrastructure: Offers IT infrastructure services, including cloud computing, cybersecurity, and data center management.
- Consulting Services: Provides consulting services to help businesses optimize their IT strategies and operations.
- Big Data: Provides big data analytics and related services.
Leadership and Structure
The company operates with a board of directors and a management team overseeing its portfolio of subsidiary companies. The chairman is Guy Bernstein and the CEO is Asaf Ravid.
Top Products and Market Share
Key Offerings
- Matrix IT: Matrix IT is an IT services company. Market share is difficult to pinpoint as it competes in many areas. Key competitors include TCS, Infosys, and Wipro, globally.
- Sapiens International Corporation: Sapiens International Corporation is a software vendor focused on the insurance industry. Sapiensu2019 competitors include Duck Creek Technologies, Guidewire, and Insurity. Market share is estimated around 5-10% within its specialized insurance software sector.
- Magic Software Enterprises: Magic Software Enterprises provides application development and business process integration platforms. Market share is difficult to pinpoint. Competitors include Microsoft, Salesforce, and IBM in various product areas.
Market Dynamics
Industry Overview
The IT services and software industry is growing, driven by digital transformation, cloud adoption, and increased demand for cybersecurity solutions. It is becoming increasingly competitive.
Positioning
Formula Systems acts as an investment holding company, investing in and managing companies within growing segments of the IT sector. It is positioned to benefit from the overall growth in the IT industry.
Total Addressable Market (TAM)
The global IT market is estimated at trillions of USD. Formula Systems, through its holdings, targets specific segments. Its positioning is strategic but indirectly related to the TAM. It is dependent on the TAM of its holdings.
Upturn SWOT Analysis
Strengths
- Diversified portfolio of IT companies
- Strong financial performance of key holdings
- Experienced management team
- Exposure to high-growth IT segments
Weaknesses
- Holding company structure can add complexity
- Performance depends heavily on the success of individual holdings
- Limited direct control over subsidiary operations
- Exposure to specific geographic regions (Israel)
Opportunities
- Further acquisitions in attractive IT segments
- Expansion into new geographic markets
- Leveraging synergies between portfolio companies
- Increased demand for cloud computing and cybersecurity
Threats
- Economic downturn impacting IT spending
- Increased competition in IT services and software
- Geopolitical risks in Israel
- Fluctuations in currency exchange rates
Competitors and Market Share
Key Competitors
- IBM (IBM)
- Tata Consultancy Services (TCS)
- Infosys (INFY)
Competitive Landscape
Formula Systems, through its holdings, competes in various segments. Its advantage lies in its diversified portfolio. The competitors have a high market share but are more specialized within the IT landscape.
Major Acquisitions
TSG IT Advanced Systems Ltd
- Year: 2023
- Acquisition Price (USD millions): 26
- Strategic Rationale: Expand solutions to technology sector with advanced technology and engineering services.
Malam-Team Ltd.
- Year: 2023
- Acquisition Price (USD millions): 400
- Strategic Rationale: Strengthen IT sector with services and experience of its portfolio.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by the performance of key holdings and strategic acquisitions.
Future Projections: Future growth is projected to continue based on continued demand for IT services and software, as well as further acquisitions. Analyst estimates fluctuate.
Recent Initiatives: Recent initiatives include strategic acquisitions and investments in high-growth IT segments.
Summary
Formula Systems is an investment holding company with a diverse portfolio of IT companies. Its strengths lie in this diversification and exposure to high-growth IT segments. However, its performance depends heavily on its holdings, and it faces risks such as economic downturns and geopolitical uncertainties. Recent acquisitions show a commitment to growth.
Similar Companies
- IBM
- INFY
- ACN
Sources and Disclaimers
Data Sources:
- Company Financial Reports
- Market Research Reports
- Analyst Estimates
- Corporate Website
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Formula Systems 1985 Ltd ADR
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1997-10-21 | CEO - | ||
Sector Technology | Industry Information Technology Services | Full time employees - | Website https://www.formulasystems.com |
Full time employees - | Website https://www.formulasystems.com | ||
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.
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