Formula Systems (1985) Ltd.

Formula Systems provides software solutions, IT services, and infrastructure solutions. It offers various platforms, including property and casualty insurance, life insurance, reinsurance, and financial compliance. The company also provides data analytics, cloud-based DigitalSuite, and workers compensation solutions. Additionally, it offers medical professional liability solutions, technology-based solutions, and application development platforms. Formula Systems sells and markets computers, peripheral equipment, and cloud computing solutions. The company was incorporated in 1985 and is headquartered in Israel. It provides a range of services, including strategic consulting, outsourcing, and professional training.

Overview

Sector

IT Services

Target Price

334.4 USD

Current Price

115.5 USD

Potential

189%

Strengths

With an appreciation Potential of 203.85%, based on our fundamental analysis, it suggests the stock may be undervalued.
Price to book ratio (2.48) is lower than the sector mean (4.87).
The company has low debt. Net Debt to EBITDA Ratio is -0.07 and it is lower than the sector mean.
The company has high returns. ROIC (28.00%) is higher than the sector mean (15.63%).
EV/EBITDA (4.29) is lower than the sector mean (36.44).
EV/EBIT (6.00) is lower than the sector mean.
Price to free cash flow (5.71) is lower than the sector mean.

Weaknesses

No significant weaknesses identified based on the analyzed metrics.

Key Financial Data

Indicator	Value
PER	22.2
EV/EBITDA	4.5
Price/Free Cash Flow'	6.0
ROIC	28.0%
Net Debt/EBITDA	-0.1