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Formula Systems (1985) Ltd. (FORTY) Stock Analysis

Recovery setup

SellModerate Confidence

Technology · Information Technology Services

Sell if holding. Multiple concerning factors at $138.49: Consecutive earnings misses (3); Weak growth.

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions and information technologies (IT) professional services in Israel, the United States, Europe, Africa, Japan, and internationally. The company also offers software... Read more

$138.49+4.3% A.UpsideScore 5.1/10#23 of 35 Information Technology Services
Stop $124.38Target $138.18(resistance)A.R:R 0.0:1

Sell if holding. Multiple concerning factors at $138.49: Consecutive earnings misses (3); Weak growth. Chart setup: Death cross but MACD improving, RSI 58. Score 5.1/10, moderate confidence.

Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear). Suitability: aggressive.

Thesis

Rewards
Attractive valuation
Risks
Consecutive earnings misses (3)
Weak growth

Key Metrics

P/E (TTM)59.0
P/E (Fwd)
Mkt Cap$2.1B
EV/EBITDA7.3
Profit Mgn23.1%
ROE6.9%
Rev Growth2.4%
Beta0.17
Dividend1.86%
Rating analysts

Quality Signals

Piotroski F8/9

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

4 floor-breakers·2 ceiling hits

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
3.1
Low model confidence on this dimension (33%).

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
2.7
Value Rank
3.5
Quality Rank
6.5
Best-in-class margins

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
3.4
Support Resistance
3.6
52w Position
3.9

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
0.0
Earnings Timing
5.0
Dividend
10.0
Earnings concerns: 1B/3MDividend: 186.0%
GatesA.R:R UPSIDE_EXHAUSTED (upside=0.0%)Momentum 5.7>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 28d clearSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
58 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $117.46Resistance $141.00

Price Targets

$124
$138
A.Upside-0.2%
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Analyst Consensus

Analysts0
Consensus
Avg Target

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-05-28 (28d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is FORTY stock a buy right now?

Sell if holding. Multiple concerning factors at $138.49: Consecutive earnings misses (3); Weak growth. Chart setup: Death cross but MACD improving, RSI 58. Prior stop was $124.38. Score 5.1/10, moderate confidence.

What is the FORTY stock price target?

Take-profit target: $138.18 (+4.3% upside). Prior stop was $124.38. Stop-loss: $124.38.

What are the risks of investing in FORTY?

Consecutive earnings misses (3); Weak growth.

Is FORTY overvalued or undervalued?

Formula Systems (1985) Ltd. trades at a P/E of 59.0 (forward N/A). TrendMatrix value score: 8.6/10. Verdict: Sell.

0
What does Formula Systems (1985) Ltd. do?Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions and...

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions and information technologies (IT) professional services in Israel, the United States, Europe, Africa, Japan, and internationally. The company also offers software product marketing and support, computer infrastructure and integration solutions, and learning and integration. In addition, it provides IT software solutions and services, and consulting and management services; computer and communication infrastructure solutions; and software solutions, web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools. Further, the company offers Sapiens software solutions, such as Sapiens CoreSuite and Sapiens IDITSuite for property and Casualty insurance; Sapiens Platform, Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster for life, pension, and annuities; Sapiens Digital Suite; Data and Analytics platform; and Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO for reinsurance. Additionally, it provides Sapiens workers' compensation platform; Sapiens Medical Professional Liability solution; Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro and Sapiens Reporting Tools for financial and compliance; Sapiens Decision platform; and technology-based solutions. The company also application development and business process integration platforms; vertical software solutions; cloud-based services; strategic consulting and outsourcing, and professional services, as well as cloud computing solutions; and sells and markets computers and peripheral equipment. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.

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