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Formula Systems (1985)

Nasdaq:FORT.Y
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FORT.Y
Nasdaq
₪3B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services. The last earnings update was 22 days ago. More info.


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FORT.Y Share Price and Events
7 Day Returns
19.8%
NasdaqGS:FORT.Y
4.3%
US IT
2.4%
US Market
1 Year Returns
15.8%
NasdaqGS:FORT.Y
-1.2%
US IT
-10%
US Market
FORT.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Formula Systems (1985) (FORT.Y) 19.8% 22.4% - 15.8% 49.1% 120%
US IT 4.3% -10% -15.6% -1.2% 59.3% 77.7%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • FORT.Y outperformed the IT industry which returned -1.2% over the past year.
  • FORT.Y outperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
FORT.Y
Industry
5yr Volatility vs Market

Value

 Is Formula Systems (1985) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Formula Systems (1985) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Formula Systems (1985).

NasdaqGS:FORT.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:FORT.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
IT Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.913 (1 + (1- 23%) (62.74%))
1.237
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.237 * 6.33%)
9.57%

Discounted Cash Flow Calculation for NasdaqGS:FORT.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Formula Systems (1985) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:FORT.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.57%)
2020 67.93 Est @ 7.34% 62.00
2021 71.78 Est @ 5.66% 59.78
2022 74.99 Est @ 4.48% 57.01
2023 77.74 Est @ 3.66% 53.93
2024 80.14 Est @ 3.08% 50.74
2025 82.28 Est @ 2.68% 47.55
2026 84.26 Est @ 2.4% 44.43
2027 86.11 Est @ 2.2% 41.44
2028 87.89 Est @ 2.06% 38.60
2029 89.61 Est @ 1.97% 35.92
Present value of next 10 years cash flows $491.00
NasdaqGS:FORT.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $89.61 × (1 + 1.74%) ÷ (9.57% – 1.74%)
$1,164.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,164.12 ÷ (1 + 9.57%)10
$466.66
NasdaqGS:FORT.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $491.00 + $466.66
$957.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $957.66 / 15.29
$62.62
NasdaqGS:FORT.Y Discount to Share Price
Calculation Result
Exchange Rate USD/ILS
(Reporting currency to currency of TASE:FORTY)
3.592
Value per Share
(ILS)
= Value per Share in USD x Exchange Rate (USD/ILS)
= $62.62 x 3.592
₪224.9
Non-primary Listing Adjustment Factor 1 share in NasdaqGS:FORT.Y represents 0.26655x of TASE:FORTY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.26655x
Value per Share
(Listing Adjusted, USD)
= Value per Share (ILS) x Listing Adjustment Factor
= ₪ 224.90 x 0.26655
$59.95
Value per share (USD) From above. $59.95
Current discount Discount to share price of $60.21
= -1 x ($60.21 - $59.95) / $59.95
-0.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Formula Systems (1985) is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Formula Systems (1985)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Formula Systems (1985)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:FORT.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.56
TASE:FORTY Share Price ** TASE (2020-04-07) in ILS ₪225.9
TASE:FORTY Share Price converted to USD reporting currency Exchange rate (ILS/ USD) 0.278 $62.89
United States of America IT Industry PE Ratio Median Figure of 71 Publicly-Listed IT Companies 24.84x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Formula Systems (1985).

NasdaqGS:FORT.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TASE:FORTY Share Price ÷ EPS (both in USD)

= 62.89 ÷ 2.56

24.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Formula Systems (1985) is good value based on earnings compared to the US IT industry average.
  • Formula Systems (1985) is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Formula Systems (1985)'s expected growth come at a high price?
Raw Data
NasdaqGS:FORT.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America IT Industry PEG Ratio Median Figure of 60 Publicly-Listed IT Companies 1.89x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Formula Systems (1985), we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Formula Systems (1985)'s assets?
Raw Data
NasdaqGS:FORT.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $27.59
TASE:FORTY Share Price * TASE (2020-04-07) in ILS ₪225.9
TASE:FORTY Share Price converted to USD reporting currency Exchange rate (ILS/ USD) 0.278 $62.89
United States of America IT Industry PB Ratio Median Figure of 116 Publicly-Listed IT Companies 2.88x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:FORT.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TASE:FORTY Share Price ÷ Book Value per Share (both in USD)

= 62.89 ÷ 27.59

2.28x

* Primary Listing of Formula Systems (1985).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Formula Systems (1985) is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Formula Systems (1985)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Formula Systems (1985) has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Formula Systems (1985) expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Formula Systems (1985) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.4%
Expected IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Formula Systems (1985) expected to grow at an attractive rate?
  • Unable to compare Formula Systems (1985)'s earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Formula Systems (1985)'s earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Formula Systems (1985)'s revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:FORT.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:FORT.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FORT.Y Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,701 39
2019-09-30 1,647 40
2019-06-30 1,560 37
2019-03-31 1,511 35
2018-12-31 1,493 83 32
2018-09-30 1,466 65 26
2018-06-30 1,452 24
2018-03-31 1,418 17
2017-12-31 1,355 81 10
2017-09-30 1,291 12
2017-06-30 1,227 12
2017-03-31 1,157 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Formula Systems (1985) is high growth as no earnings estimate data is available.
  • Unable to determine if Formula Systems (1985) is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:FORT.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Formula Systems (1985) Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FORT.Y Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.56
2019-09-30 2.63
2019-06-30 2.45
2019-03-31 2.38
2018-12-31 2.20
2018-09-30 1.79
2018-06-30 1.67
2018-03-31 1.17
2017-12-31 0.72
2017-09-30 0.82
2017-06-30 0.83
2017-03-31 1.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Formula Systems (1985) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of FORT.Y’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Formula Systems (1985)'s future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. Formula Systems (1985)'s competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Formula Systems (1985)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Formula Systems (1985) has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Formula Systems (1985) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Formula Systems (1985)'s growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Formula Systems (1985)'s year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Formula Systems (1985)'s 1-year earnings growth exceeds its 5-year average (19.9% vs -10%)
  • Formula Systems (1985)'s earnings growth has exceeded the US IT industry average in the past year (19.9% vs 13.7%).
Earnings and Revenue History
Formula Systems (1985)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Formula Systems (1985) Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FORT.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,701.12 38.82 200.87 46.69
2019-09-30 1,646.61 39.57 192.92 44.14
2019-06-30 1,560.06 36.59 184.38 42.07
2019-03-31 1,510.97 35.16 181.49 40.86
2018-12-31 1,492.99 32.37 182.47 41.22
2018-09-30 1,465.83 26.23 177.40 41.73
2018-06-30 1,452.03 24.40 178.87 41.92
2018-03-31 1,417.64 17.05 179.28 42.99
2017-12-31 1,355.14 10.35 174.72 39.85
2017-09-30 1,290.91 11.71 172.08 36.34
2017-06-30 1,227.37 11.88 165.57 31.98
2017-03-31 1,157.33 18.51 155.52 25.62
2016-12-31 1,108.62 22.46 147.95 22.33
2016-09-30 837.04 76.11 102.08 11.72
2016-06-30 793.08 75.19 100.05 9.94
2016-03-31 775.67 71.25 97.62 8.18
2015-12-31 973.19 19.84 140.94 15.12
2015-09-30 754.91 23.81 90.63 7.49
2015-06-30 706.60 23.58 78.44 5.01
2015-03-31 657.34 24.19 67.38 2.62
2014-12-31 636.42 80.83 70.52 0.79
2014-09-30 683.83 132.90 86.38 3.10
2014-06-30 727.75 131.86 101.02 6.98
2014-03-31 781.39 133.84 116.37 10.85
2013-12-31 795.88 80.69 117.88 14.17
2013-09-30 785.48 21.82 116.80 15.28
2013-06-30 770.23 21.33 114.89 15.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Formula Systems (1985) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Formula Systems (1985) used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Formula Systems (1985) has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Formula Systems (1985)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Formula Systems (1985) has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Formula Systems (1985)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Formula Systems (1985)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Formula Systems (1985) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Formula Systems (1985)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Formula Systems (1985)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Formula Systems (1985) Company Filings, last reported 3 months ago.

NasdaqGS:FORT.Y Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 896.33 494.13 405.53
2019-09-30 872.08 487.63 367.32
2019-06-30 867.94 493.57 389.86
2019-03-31 846.33 467.89 297.51
2018-12-31 805.40 381.43 295.29
2018-09-30 827.78 388.79 283.70
2018-06-30 794.31 371.00 251.80
2018-03-31 804.13 376.29 269.02
2017-12-31 772.92 345.00 260.82
2017-09-30 803.27 346.95 248.75
2017-06-30 805.36 309.03 222.63
2017-03-31 788.30 259.57 211.08
2016-12-31 764.25 259.00 275.69
2016-09-30 767.49 209.39 244.96
2016-06-30 732.03 208.48 276.66
2016-03-31 729.71 219.95 308.55
2015-12-31 719.36 220.06 283.43
2015-09-30 670.81 211.04 157.38
2015-06-30 678.19 150.36 124.51
2015-03-31 668.91 141.88 127.66
2014-12-31 666.98 151.39 129.65
2014-09-30 484.13 142.14 83.95
2014-06-30 490.21 156.25 98.50
2014-03-31 493.90 145.99 98.94
2013-12-31 499.68 98.08 100.75
2013-09-30 519.76 99.80 125.60
2013-06-30 503.16 96.64 126.73
  • Formula Systems (1985)'s level of debt (55.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.7% vs 55.1% today).
  • Debt is not well covered by operating cash flow (16.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).
X
Financial health checks
We assess Formula Systems (1985)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Formula Systems (1985) has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Formula Systems (1985)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.46%
Current annual income from Formula Systems (1985) dividends.
If you bought $2,000 of Formula Systems (1985) shares you are expected to receive $29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Formula Systems (1985)'s pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • Formula Systems (1985)'s dividend is below the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:FORT.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:FORT.Y Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-17 0.920 1.882
2019-11-19 0.920 1.368
2019-08-19 0.520 0.811
2019-05-15 0.340 0.651
2019-03-19 0.340 0.716
2019-03-10 0.680 1.604
2018-11-20 0.680 1.753
2018-05-23 0.680 1.770
2017-09-19 0.820 2.093
2016-12-20 0.960 2.427
2016-11-14 0.680 1.662
2016-06-29 0.680 1.820
2016-01-07 0.680 2.286
2015-06-30 0.875 2.987
2014-12-24 1.015 4.020
2014-06-25 0.790 3.050
2013-12-30 0.620 2.185
2013-11-13 0.740 3.049
2013-06-10 0.740 3.067
2013-05-13 0.000 0.000
2013-03-14 0.000 0.000
2012-05-15 0.000 0.000
2011-05-17 0.710 4.475
2010-03-22 1.470 9.697

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Formula Systems (1985)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Formula Systems (1985)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Formula Systems (1985) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Formula Systems (1985) has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Formula Systems (1985)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Guy Bernstein
COMPENSATION $517,000
AGE 51
TENURE AS CEO 12.3 years
CEO Bio

Mr. Guy Bernstein is the Chief Executive Officer of Magic Software Enterprises Ltd. since April 2010 and has been its Director since January 2007. Mr. Bernstein served as Chairman of the Board at Magic Software Enterprises Ltd., from April 2008 to April 2010. He serves as a Director of Sapiens International Corporation N.V. since January 1, 2007 and was appointed Chairman of the Board of Directors in November 12, 2009. Mr. Bernstein has served as the Chief Executive Officer of Formula Systems (1985) Ltd. since January 2008. From December 2006 to November 2010, Mr. Bernstein served as a Director and the Chief Executive Officer of Emblaze Ltd. From April 2004 to December 2006, Mr. Bernstein served as the Chief Financial Officer of Emblaze. He also served as a Director of Emblaze from April 2004 until November 2010. Prior to joining Emblaze, Mr. Bernstein served as Chief Financial and Operations Officer of Magic Software, a position he held since 1999. Mr. Bernstein joined Magic Software from Kost Forer Gabbay & Kasierer, a member of EY Global, where he acted as Senior Manager from 1994 to 1997. Mr. Bernstein also serves as Chief Executive Officer of Magic Software and Chairman of the Board of Matrix IT Ltd. Mr. Bernstein is a Certified Licensed Public Accountant and holds a B.A. in Accounting and Economics from Tel Aviv University.

CEO Compensation
  • Guy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Guy's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Formula Systems (1985) management team in years:

8.4
Average Tenure
41
Average Age
  • The average tenure for the Formula Systems (1985) management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Guy Bernstein

TITLE
Chief Executive Officer
COMPENSATION
$517K
AGE
51
TENURE
12.3 yrs

Maya Solomon-Ella

TITLE
Chief Operational Officer
COMPENSATION
$217K
AGE
41
TENURE
3.6 yrs

Asaf Berenstin

TITLE
Chief Financial Officer
AGE
41
TENURE
8.4 yrs
Board of Directors Tenure

Average tenure and age of the Formula Systems (1985) board of directors in years:

7
Average Tenure
49
Average Age
  • The tenure for the Formula Systems (1985) board of directors is about average.
Board of Directors

Marek Panek

TITLE
Chairman of the Board
COMPENSATION
$37K
AGE
50

Iris Yahal

TITLE
External Director
COMPENSATION
$65K
AGE
58
TENURE
7 yrs

Rafal Kozlowski

TITLE
Director
COMPENSATION
$37K
AGE
45
TENURE
7.7 yrs

Eli Zamir

TITLE
External Director
COMPENSATION
$44K
AGE
49
TENURE
7 yrs

Ohad Melnik

TITLE
Director
AGE
47
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Formula Systems (1985)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Formula Systems (1985) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; database and big data services; customer relations management, computer systems management infrastructures, Web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; and professional training courses and advanced professional studies. It also markets and sells computers and peripheral equipment to business customers. In addition, the company offers property and casualty insurance platforms, such as Sapiens, Sapiens CoreSuite, Sapiens IDITSuite, Sapiens PolicyPro, Sapiens BillingPro, Sapiens ClaimsPro, and Sapiens Stingray; life, pension, and annuities platforms, including Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster; reinsurance software solutions comprising Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO; and Sapiens platform for workers’ compensation solutions. Further, it provides financial and compliance solutions that include Sapiens FinancialPro, Sapiens Financial GO, and Sapiens StatementPro; Sapiens DECISION, a decision management platform; and technology-based solutions and digital insurance suites. Additionally, the company offers application development and business process integration platforms; vertical software solutions; vendor of software services and IT outsourcing software services; and professionals in various areas, as well as develops on-premise payroll software solutions. Formula Systems (1985) Ltd. was founded in 1985 and is headquartered in Or Yehuda, Israel.

Details
Name: Formula Systems (1985) Ltd.
FORT.Y
Exchange: NasdaqGS
Founded: 1985
₪961,903,181
15,294,218
Website: http://www.formulasystems.com
Address: Formula Systems (1985) Ltd.
5 HaPlada Street,
Or Yehuda,
60218,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TASE FORTY Ordinary Shares The Tel-Aviv Stock Exchange IL ILS 10. May 1995
NasdaqGS FORT.Y ADR EACH REP 1 ORD ILS1 LEVELII(BNY) Nasdaq Global Select US USD 20. Oct 1997
DB FSY ADR EACH REP 1 ORD ILS1 LEVELII(BNY) Deutsche Boerse AG DE EUR 20. Oct 1997
MUN FSY ADR EACH REP 1 ORD ILS1 LEVELII(BNY) Boerse Muenchen DE EUR 20. Oct 1997
Number of employees
Current staff
Staff numbers
15,101
Formula Systems (1985) employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 03:52
End of day share price update: 2020/04/07 00:00
Last earnings filing: 2020/03/17
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.