Attractive valuation metrics and best-in-class margins present a compelling long-term case, but a confirmed negative price trend, three consecutive earnings misses, and a dividend payout of 211% of earnings raise near-term concerns that need to resolve before the value case can be acted on.
Thesis pillars
- Attractive Valuation Low Peg→Stable
- Strong Margins Best In Class→Stable
- Negative Momentum Confirmed Downtrend↑Improving
- +1 more pillar — see the Why tab for full reasoning
Formula Systems (1985) Ltd. (FORTY) Stock Analysis
Range Bound setup · Inst Constrain edge
Technology · Information Technology Services
Sell if holding. Momentum 3.2/10 is below the 5.0 floor at $114.59 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7); Sector modifier (Technology): -0.8.
Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology company in Israel and internationally. The company offers software consulting services; IT solutions and software systems; proprietary software solutions; and IT professional services,... Read more
Sell if holding. Momentum 3.2/10 is below the 5.0 floor at $114.59 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7); Sector modifier (Technology): -0.8. Chart setup: RSI 52 mid-range, Bollinger mid-band. Score 5.9/10, moderate confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 36d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
Recent developments
updated 2026-10-15Recent Developments — Formula Systems (1985) Ltd.
Latest news
- NEWS Formula Systems Delays 2025 Annual 20-F Filing - TipRanks — TipRanks negative
- NEWS FORTY Q1 2025 Earnings: Reported EPS of $1.23 With No Revenue Disclosure - Free Cash Flow Trends - Vinanet — Vinanet neutral
- NEWS MENORA MIVTACHIM HOLDINGS LTD. Buys Formula Systems (1985) Ltd ( - GuruFocus — GuruFocus neutral
- NEWS Formula Systems (FORTY) Holds Steady at $139.05 Amid Consolidation Phase - Bollinger Expansion - The Legal Advocate — The Legal Advocate neutral
- NEWS Formula (FORTY) Latest Reading: Gains 5.77% to Reach $116.21 in Latest Trading; Price-Level Context: Support at $110.40 — vinanet.vn positive
Generated 2026-10-15T11:37:20Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·2 ceiling hits
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 3.2/10 is below the 5.0 floor at $114.59 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7); Sector modifier (Technology): -0.8. Chart setup: RSI 52 mid-range, Bollinger mid-band. Prior stop was $111.77. Score 5.9/10, moderate confidence.
Take-profit target: $131.78 (+15.0% upside). Prior stop was $111.77. Stop-loss: $111.77.
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7); Sector modifier (Technology): -0.8; Consecutive earnings misses (3).
Formula Systems (1985) Ltd. trades at a P/E of 23.6 (forward N/A). TrendMatrix value score: 9.1/10. Verdict: Sell.
What does Formula Systems (1985) Ltd. do?Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology company in Israel and...
Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology company in Israel and internationally. The company offers software consulting services; IT solutions and software systems; proprietary software solutions; and IT professional services, including implementation and integration projects of computing and software, outsourcing, software project management and development, IT managed services, operation of a network of training and instruction centers, sale of software and hardware products, and software testing and QA. It also provides cloud and computing infrastructure; packaged software solutions, such as Clicks for medical record information management systems, Hermes Cargo for managing air cargo ground handling, HR Pulse for the creation of HCM solutions, MBS solution for managing TV broadcast channels, Nativ for managing rehabilitation centers, and Mobisale for consumer goods sale and distribution; and product-related services comprising maintenance, customer support, and training. In addition, the company offers software solutions and services for payroll processing, pension administration, workforce management, and human resources, as well as financial processes, accounting workflows, and business operations; employees to vendor management systems workforce management program accounts; and digital advertising and e-commerce platforms, as well as digital services, which include search engine marketing and optimization, website design, management of social media, online business cards, and big data. Further, it is involved in aerial and satellite mapping, geographic data collection and processing, and geographic applications; installation of computer communication infrastructures, announcement and alarm systems, and electronic security systems; and planning and deployment of fiber optics, structured cabling, and coaxial and telephony systems. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.