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Formula Systems (1985)FRA:FSY -1.90%66 Cash-to-Debt is 1.29 as of Jun. 2026, which is 79% above its 10-year median of 0.72. GuruFocus rates FRA:FSY with a GF Score™ of 66/100 and a GF Value™ of €114.38 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,841 Software companies, Formula Systems (1985) ranks worse than 60.37% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Formula Systems (1985)'s cash to debt ratio for the quarter that ended in Jun. 2026 was 1.29.
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, Formula Systems (1985)could pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Formula Systems (1985)'s Cash-to-Debt or its related term are showing as below:
FRA:FSY'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.52 Med: 0.72 Max: 2.16
Current: 1.29
During the past 13 years, Formula Systems (1985)'s highest Cash to Debt Ratio was 2.16. The lowest was 0.52. And the median was 0.72.
FRA:FSY's Cash-to-Debt is ranked worse than 60.37% of 2841
companies
in the Software industry
Industry Median: 2.47
vs FRA:FSY: 1.29
Formula Systems (1985) (FRA:FSY) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Formula Systems (1985) Cash-to-Debt Related Terms
Formula Systems (1985) Cash-to-Debt Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:FSY vs IBM, ACN, CTSH: Cash-to-Debt Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Formula Systems (1985) Cash-to-Debt vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Formula Systems (1985) (FRA:FSY) has a Cash-to-Debt of 1.29 as of Jun. 2026. This is 79% above median its historical median of 0.72. Over the past decade, Formula Systems (1985)'s Cash-to-Debt has ranged from 0.52 to 2.16. According to the industry distribution chart, Formula Systems (1985) ranks #1715 out of 2841 companies in the Software industry, placing it in the top 60.4%.
Is Formula Systems (1985)'s Cash-to-Debt too high?
Formula Systems (1985)'s current Cash-to-Debt of 1.29 is 79% above median its 10-year median of 0.72. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 2.16. The Software industry median Cash-to-Debt is 2.47. Formula Systems (1985)'s value of 1.29 is 47.8% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1715 out of 2841 companies in the Software industry, which is below the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Cash-to-Debt compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1715 out of 2841 companies for Cash-to-Debt. This places Formula Systems (1985) in the lower half of its industry. The industry median Cash-to-Debt is 2.47. Formula Systems (1985)'s value of 1.29 is 47.8% below this benchmark. Historically, Formula Systems (1985)'s own Cash-to-Debt has ranged from 0.52 to 2.16 over the past decade. While the company's 10-year median is 0.72 vs. the industry median of 2.47, Formula Systems (1985) has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Software company?
The median Cash-to-Debt among Software companies is 2.47, based on 2,841 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Cash-to-Debt of 1.29 is 47.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Cash-to-Debt is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Cash-to-Debt is 1.29, which is 79% above median its own 10-year median of 0.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formula Systems (1985) stock overvalued right now?
Based on GuruFocus' analysis, Formula Systems (1985) (FRA:FSY) is currently considered Modestly Undervalued. The stock's GF Value™ is €114.38, compared to a current price of €103.00 — trading 9.9% below its estimated fair value. The current Cash-to-Debt is 1.29, which is 79% above median its 10-year median of 0.72 and 47.8% below the Software industry median of 2.47. Formula Systems (1985)'s overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Cash-to-Debt is 1.29 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Formula Systems (1985) (FRA:FSY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of €103.00 is trading 9.9% below its estimated GF Value™ of €114.38.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Cash-to-Debt: 1.29 (79% above median its 10-year median of 0.72)
GF Value™: €114.38 vs. price of €103.00 (9.9% below fair value)
Industry Position: 47.8% below the Software median (#1715 of 2841)
No single metric tells the full story. See the FRA:FSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formula Systems (1985) Ltd is an information technology company that is principally engaged through its directly and indirectly held investees in providing software consulting services, selling and marketing computer-based business solutions and hardware products from a wide range of domestic and international manufacturers, as well as developing proprietary software solutions. It delivers solutions in Israel and in numerous countries to customers with complex IT services needs. It designs and implements IT solutions and software systems that improve the productivity of customers' existing IT assets, enable them to effectively manage their operations and reduce their business risks in the face of changing business environments.
66GF Score
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