FORMULA SYSTEMS (1985) LTD
FORTYdata completeness 88%16 fiscal years on fileFORMULA SYSTEMS (1985) LTD earns about 2533% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $55.01 and $684.56 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.
| Figure | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Revenue | $1.93B1 | $2.4B2 | $2.57B3 | $2.62B3 | $2.76B3 |
| Net income | $114M4 | $141.9M4 | $81.4M5 | $64M5 | $79.7M5 |
| Operating cash flow | $288.1M6 | $209.1M7 | $239.1M8 | $295M8 | $324.5M8 |
| Capital expenditure | $16.7M9 | $17.4M10 | $22.1M11 | $16.7M11 | $16.4M11 |
| Free cash flow (derived) | $271.5M6 | $191.7M7 | $217.1M8 | $278.3M8 | $308M8 |
| Total debt | — | — | — | — | — |
| Cash & equivalents | $501.7M12 | $485.4M12 | $544.3M13 | $451.9M14 | $507.8M14 |
| Diluted shares | 15.3M | 15.3M | 15.3M | 15.3M | 15.3M |
Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).
10 shares is a claim on $443.07 of net worth that earned you $51.96 and generated $200.88 of cash last year.
It earned about 2533% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.
seeing a moat in the numbers →Share count is roughly flat over 5 years — little dilution, little buyback.
reading capital allocation →Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.
The 3 estimate methods that apply put fair value between $55.01 and $684.56 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears10
- fcfGrowth13.2%
- fcfBase$278.3M
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears5
- fcfGrowth13.2%
- fcfBase$278.3M
assumptions (8)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- normalizedEarnings$81.4M
- growthAssumed0.0%
assumptions (1)
- grahamMultiplier2250.0%
Different models answer different questions — which to trust when →
| Bear | 0.0% | $292.44 |
| Base | 13.2% | $486.05 |
| Bull | 18.2% | $585.41 |
Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.
Default growth 13.2%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.
- 20-F/A · period ending 2020-12-31 · accession 0001213900-23-094521 (Revenue)
- 20-F · period ending 2021-12-31 · accession 0001213900-24-043687 (Revenue)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043461 (Revenue)
- 20-F/A · period ending 2020-12-31 · accession 0001213900-22-027668 (ProfitLoss)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043461 (ProfitLossAttributableToOwnersOfParent)
- 20-F/A · period ending 2020-12-31 · accession 0001213900-23-094521 (CashFlowsFromUsedInOperatingActivities)
- 20-F · period ending 2021-12-31 · accession 0001213900-24-043687 (CashFlowsFromUsedInOperatingActivities)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043461 (CashFlowsFromUsedInOperatingActivities)
- 20-F/A · period ending 2020-12-31 · accession 0001213900-23-094521 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
- 20-F · period ending 2021-12-31 · accession 0001213900-24-043687 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043461 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
- 20-F/A · period ending 2020-12-31 · accession 0001213900-23-094521 (CashAndCashEquivalents)
- 20-F · period ending 2022-12-31 · accession 0001213900-24-043687 (CashAndCashEquivalents)
- 20-F · period ending 2023-12-31 · accession 0001213900-25-043461 (CashAndCashEquivalents)