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Formula Systems (1985)FRA:FSY +2.26%67 Debt-to-Equity is 0.49 as of Mar. 2026, which is 54% below its 10-year median of 1.06. GuruFocus rates FRA:FSY with a GF Score™ of 67/100 and a GF Value™ of €112.68 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,244 Software companies, Formula Systems (1985) ranks worse than 70.14% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Formula Systems (1985)'s Debt-to-Equity or its related term are showing as below:
FRA:FSY'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.44 Med: 1.06 Max: 1.59
Current: 0.49
During the past 13 years, the highest Debt-to-Equity Ratio of Formula Systems (1985) was 1.59. The lowest was 0.44. And the median was 1.06.
FRA:FSY's Debt-to-Equity is ranked worse than 70.14% of 2244
companies
in the Software industry
Industry Median: 0.19
vs FRA:FSY: 0.49
Formula Systems (1985) (FRA:FSY) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Formula Systems (1985) Debt-to-Equity Related Terms
Formula Systems (1985) Debt-to-Equity Historical Data
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The historical data trend for Formula Systems (1985)'s Debt-to-Equity 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: Debt-to-Equity Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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) Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Debt-to-Equity 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 Debt-to-Equity of 0.49 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Formula Systems (1985) and its competitors. This is 54% below median its historical median of 1.06. Over the past decade, Formula Systems (1985)'s Debt-to-Equity has ranged from 0.44 to 1.59. According to the industry distribution chart, Formula Systems (1985) ranks #1574 out of 2244 companies in the Software industry, placing it in the top 70.1%.
Is Formula Systems (1985)'s Debt-to-Equity too high?
Formula Systems (1985)'s current Debt-to-Equity of 0.49 is 54% below median its 10-year median of 1.06. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 1.59. The Software industry median Debt-to-Equity is 0.19. Formula Systems (1985)'s value of 0.49 is 157.9% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1574 out of 2244 companies in the Software industry, which is below the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Debt-to-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1574 out of 2244 companies for Debt-to-Equity. This places Formula Systems (1985) in the lower half of its industry. The industry median Debt-to-Equity is 0.19. Formula Systems (1985)'s value of 0.49 is 157.9% above this benchmark. Historically, Formula Systems (1985)'s own Debt-to-Equity has ranged from 0.44 to 1.59 over the past decade. While the company's 10-year median is 1.06 vs. the industry median of 0.19, Formula Systems (1985) has consistently been above 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 Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,244 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Debt-to-Equity of 0.49 is 157.9% above 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Debt-to-Equity is 0.49, which is 54% below median its own 10-year median of 1.06. 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 €112.68, compared to a current price of €90.50 — trading 19.7% below its estimated fair value. The current Debt-to-Equity is 0.49, which is 54% below median its 10-year median of 1.06 and 157.9% above the Software industry median of 0.19. Formula Systems (1985)'s overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Debt-to-Equity is 0.49 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 €90.50 is trading 19.7% below its estimated GF Value™ of €112.68.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
Debt-to-Equity: 0.49 (54% below median its 10-year median of 1.06)
GF Value™: €112.68 vs. price of €90.50 (19.7% below fair value)
Industry Position: 157.9% above the Software median (#1574 of 2244)
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.
67GF Score
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