Formula Systems (1985)FRA:FSY +0.57%71 Days Inventory is 5.10 as of Mar. 2026, which is 20% above its 10-year median of 4.25. GuruFocus rates FRA:FSY with a GF Score™ of 71/100 and a GF Value™ of €120.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,648 Software companies, Formula Systems (1985) ranks better than 69.54% on this metric.
The historical rank and industry rank for Formula Systems (1985)'s Days Inventory or its related term are showing as below:
FRA:FSY'
s Days Inventory Range Over the Past 10 Years
Min: 1.13 Med: 4.25 Max: 8.34
Current: 5.4
During the past 13 years, Formula Systems (1985)'s highest Days Inventory was 8.34. The lowest was 1.13. And the median was 4.25.
FRA:FSY's Days Inventory is ranked better than 69.54% of 1648
companies
in the Software industry
Industry Median: 20.11
vs FRA:FSY: 5.40
Formula Systems (1985)'s Days Inventory
declined
from Mar. 2025 (5.44) to Mar. 2026 (5.10).
Inventory Turnover measures how fast the company turns over its inventory within a year.
Formula Systems (1985)'s Inventory Turnover for the
three
months ended in Mar. 2026 was 17.90.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Formula Systems (1985)'s Inventory-to-Revenue for the
three
months ended in Mar. 2026 was 0.04.
Formula Systems (1985) (FRA:FSY) Days Inventory Explanation
Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:
1. Inventory Turnover measures how fast the company turns over its inventory within a year.
Formula Systems (1985)'s Inventory Turnover for the
three
months ended in Mar. 2026 is calculated as
2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Formula Systems (1985)'s Inventory to Revenue for the
three
months ended in Mar. 2026 is calculated as
* 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.
Be Aware
A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.
Formula Systems (1985) Days Inventory Related Terms
Formula Systems (1985) Days Inventory Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'s Days Inventory can be seen below:
* 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.
FRA:FSY vs IBM, ACN, FISV: Days Inventory Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Days Inventory, along with its competitors' market caps and Days Inventory 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) Days Inventory vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Days Inventory distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Days Inventory 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 Days Inventory of 5.10 as of Mar. 2026. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Formula Systems (1985) and its competitors. This is 20% above median its historical median of 4.25. Over the past decade, Formula Systems (1985)'s Days Inventory has ranged from 1.13 to 8.34. According to the industry distribution chart, Formula Systems (1985) ranks #502 out of 1648 companies in the Software industry, placing it in the top 30.5%.
Is Formula Systems (1985)'s Days Inventory too high?
Formula Systems (1985)'s current Days Inventory of 5.10 is 20% above median its 10-year median of 4.25. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 8.34. The Software industry median Days Inventory is 20.11. Formula Systems (1985)'s value of 5.10 is 74.6% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #502 out of 1648 companies in the Software industry, which is above the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Days Inventory compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #502 out of 1648 companies for Days Inventory. This puts Formula Systems (1985) in the upper half of its industry. The industry median Days Inventory is 20.11. Formula Systems (1985)'s value of 5.10 is 74.6% below this benchmark. Historically, Formula Systems (1985)'s own Days Inventory has ranged from 1.13 to 8.34 over the past decade. While the company's 10-year median is 4.25 vs. the industry median of 20.11, 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 Days Inventory for a Software company?
The median Days Inventory among Software companies is 20.11, based on 1,648 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Days Inventory of 5.10 is 74.6% 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 Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Days Inventory is 20.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Days Inventory is 5.10, which is 20% above median its own 10-year median of 4.25. 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 €120.75, compared to a current price of €87.50 — trading 27.5% below its estimated fair value. The current Days Inventory is 5.10, which is 20% above median its 10-year median of 4.25 and 74.6% below the Software industry median of 20.11. Formula Systems (1985)'s overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Days Inventory is 5.10 as of Mar. 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 €87.50 is trading 27.5% below its estimated GF Value™ of €120.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Days Inventory: 5.10 (20% above median its 10-year median of 4.25)
GF Value™: €120.75 vs. price of €87.50 (27.5% below fair value)
Industry Position: 74.6% below the Software median (#502 of 1648)
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.
71GF Score
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