Back to Dashboard
18

FORTY

💻 Technology

Formula Systems (1985) Ltd.

Conservative #1326Aggressive #1253Moderate RiskHigh 85
$116.00+0.87%
Day High$122.10
Day Low$113.75
Volume0.0M
Mkt Cap$1.8B
52W Low $8352W High $191
Market Cap
$1.9B
P/E Ratio
40.5
Sector avg: 87.8
Rev Growth
5.2%
Sector avg: 14.8%
Earnings Growth
24.5%
Profit Margin
2.5%
Sector avg: -110.0%
Debt/Equity
0.82

Why This Score

FORTY scores 18.4 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Positive but moderate momentum (28%) — steady appreciation without overheating.
  • High conviction (85/100) — fundamental and ML signals agree on this stock.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 25-point penalty for execution risk.
  • Elevated valuation at 40.5x earnings — requires sustained growth to justify the premium.
  • Above-average volatility (14.3%) may not suit conservative risk tolerance.

Net penalties of -25.0 points significantly impact the ranking. Without these adjustments, FORTY would rank considerably higher.

Score Breakdown

Overall Score18.4
Fundamental Score40.3
ML Score36.0

Score by Horizon

3 Month
51.4
6 Month
57.4
Primary
1 Year
60.4

Quality Assessment

A
Earnings Grade
Strong fundamentals, high earnings quality

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
49
Neutral
Analyst (6.4%)
50
Neutral
Tradability (post-hoc)
0
Grade Fvery low volume, very low dollar volume
Base
14.4
SHAP
+2.2
Factors
+0.5
Conviction
+1.3
Final
18.4
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)49.0
Technical (Momentum, Weinstein, Volatility)51.0
External (Sentiment, Analyst, Macro)62.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-4.7% to +1.7%
Medium-term
-6.5% to +3.0%
Long-term
-8.2% to +4.3%

ML Model Core Features100 trained inputs → ML Score: 36

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score50.0/100
Target Upside+0.0%
Coverage0 analysts
Market Sentiment
Sentiment Score49.1/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum+0.3%
6M Momentum-0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+35.4%
Momentum ConsistencyDivergent (-0.28)
Relative Strength vs Sector+24.0%
Trend Strength (ADX Proxy)Moderate (1.9)
Momentum Quality+0.196
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
4%
Low risk
Sector RevGr Rank
P33
Revenue growth vs Technology peers
Sector PE Rank
P32
Valuation vs Technology peers
Sector FCF Rank
P17
Free cash flow vs Technology peers
Growth Deviation
-0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 68 relative to sector peers68/100
Machine learning model ranks this stock at the 60th percentileP60
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +3.1pt (features align with model priorities)
Blend: 91% fund (67.8) + 9% ML (60.3) + SHAP(+3.1) = 70.2
Factor quality: +0.7pt (multi-factor composite)
Risk assessment: moderate. Annualized volatility 14.3%. Max drawdown 29% (-8.3 pts)Moderate
Market cap adjustment: -8.0 points ($1.9B market cap)-8.0 pts
Conviction bonus: +1.8pt (conviction=85)
Risk Factors

No risk factors identified.

Sector Peer Comparison(Technology — Rank #276 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
FORTY18.440.55.2%2.5%$1.9B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

No analyst sentiment data available for FORTY.

Company Overviewvia FMP

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, and computer infrastructure and integration solutions worldwide. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; and database and big data services. It also provides customer relations management, computer systems management infrastructures, web world content management, database and data warehouse mining, application integration, database and system, data management, and software development tools; and professional training courses and advanced professional studies. In addition, it markets and sells computers and peripheral equipment to business customers; offers property and casualty insurance platforms, such as Sapiens, Sapiens CoreSuite, Sapiens IDITSuite, Sapiens PolicyPro, Sapiens BillingPro, Sapiens ClaimsPro, e-Tica, and Tia Enterprise; 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, the company 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. Additionally, it offers application development and business process integration platforms; vertical software solutions; strategic consulting and outsourcing services; and professional services in various areas, as well as develops on-premise payroll software. Formula Systems (1985) Ltd. was incorporated in 1985 and is headquartered in Or Yehuda, Israel.

CEO
Guy Bernstein
Employees
21,900
Beta
0.34
Industry
Information Technology Services
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
17.0
Oversold
Trend
Bearish
10-day vs 50-day MA
From 52W High
-39.7%
High: $190.56
From 52W Low
+39.4%
Low: $82.52
Moving Averages
10-Day
$119.90
Below
20-Day
$134.50
Below
50-Day
$156.70
Below
200-Day
$137.70
Below
60-Day Support
$115
60-Day Resistance
$190.56
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 17/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Transition signal: 3→4
Price vs 200 SMA
-16.5%
200 SMA Slope (60d)
+16.94%
Rising
Volume Ratio
1.27x
10d avg vs 50d avg
Days in Stage
15
Confidence: 50%
Recent Gap UpRecent Gap Down

Financial Statementslast 4 quarters via FMP

MetricQ3 2025Q2 2025Q1 2025Q4 2024
Revenue$697M$743M$755M$691M
Gross Profit$136M$185M$181M$180M
Operating Income$55M$68M$71M$72M
Net Income$17M$15M$19M$20M
EPS (Diluted)$0.73$0.95$1.23$1.28
Gross Margin19.5%25.0%23.9%26.1%
Operating Margin7.8%9.1%9.3%10.4%
Net Margin2.5%2.0%2.6%2.9%

Why This Stock

TechnologyEarnings quality grade AValuation below sector median (P/E 40.5)

Tradability FilterGrade F — 0/100Score impact: -22.4pt

Low Tradability Warning

This stock has limited trading volume and/or float. Institutional investors may face difficulty entering or exiting positions without significant price impact. A post-hoc penalty has been applied to the composite score (this is not a backtested model factor — it is a practical tradability overlay).

Volume
0
0K avg/day
Dollar Vol
0
$23K/day
Float
0
14M shares
Mkt Cap
0
$1.9B
Range
0
131% spread
Composite Liquidity Score0/100
FDCBA
very low volumevery low dollar volumelow float

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$79.25$142.0056.7%Wide
2022$70.89$122.7953.6%Wide
2023$55.97$82.5538.4%Wide
2024$60.39$96.5046%Wide
2025$80.15$190.5681.6%Wide
3-Year Range
109.2%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.15x dampening
weinstein declining

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
93.6%
Outstanding Shares
15M
Bid-Ask Spread
131.0%
Institutional Tradable
No

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.