FORTY:NASDAQFormula Systems (1985) Ltd. Analysis
Data as of 2026-06-26 - not real-time
$106.50
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Formula Systems (1985) Ltd. is trading at its 30‑day support of $106.5, with the 20‑day SMA ($121.73) well below the 50‑day SMA ($131.48) and a bearish MACD histogram (-1.64). RSI at 25.9 signals oversold conditions, while volatility is elevated at 49% and volume is trending lower, indicating liquidity pressure.
Fundamentally, the stock shows a PE of 28 versus an industry average of 36.8, a low price‑to‑sales of 0.59 and a modest dividend yield of 2.33%, suggesting it is undervalued with a sustainable payout given strong cash balances that exceed debt. Revenue growth of 19% and a 65% payout ratio support a blend of growth and value appeal, though thin margins and a high 30‑day drawdown temper optimism.
Fundamentally, the stock shows a PE of 28 versus an industry average of 36.8, a low price‑to‑sales of 0.59 and a modest dividend yield of 2.33%, suggesting it is undervalued with a sustainable payout given strong cash balances that exceed debt. Revenue growth of 19% and a 65% payout ratio support a blend of growth and value appeal, though thin margins and a high 30‑day drawdown temper optimism.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 5/10
Key Factors
- Bearish technicals (price below SMA20/50, negative MACD)
- Low trading volume and high liquidity risk
- Oversold RSI suggesting limited upside in the near term
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Strong revenue growth (19%) and attractive valuation multiples
- Sustainable dividend supported by cash > debt
- Potential price rebound from oversold condition
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervalued relative to industry peers
- Diversified global software portfolio in insurance and reinsurance
- Consistent dividend yield and solid cash position for continued investment
Key Metrics & Analysis
Financial Health
Revenue Growth19.20%
Profit Margin22.68%
P/E Ratio28.0
ROE8.68%
Debt/Equity37.36
P/B Ratio1.2
Industry P/E36.8
Technical Analysis
TrendBearish
RSI25.9
Support$106.50
Resistance$138.25
MA 20$121.73
MA 50$131.48
MA 200$142.05
MACDBearish
VolumeDecreasing
Fear & Greed Index87.7
Valuation
GradeUndervalued
TypeBlend
Dividend Yield2.33%
Risk Assessment
Beta0.59
Volatility49.10%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskHigh
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.