Formula Systems (1985) (FRA:FSY) Gross Profit: €522 Mil (TTM As of Mar. 2026)

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FRA:FSY Formula Systems (1985) Ltd FRA:FSY
64 GF Score
Price €86.50
GF Value €100.76
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Formula Systems (1985) Gross Profit?

Formula Systems (1985) FRA:FSY -3.35% 64 Gross Profit is €522 Mil as of Mar. 2026. GuruFocus rates FRA:FSY with a GF Score™ of 64/100 and a GF Value™ of €100.76 (Modestly Undervalued). The stock has 4 warning signs investors should review.

Formula Systems (1985)'s gross profit for the three months ended in Mar. 2026 was €126 Mil. Formula Systems (1985)'s gross profit for the trailing twelve months (TTM) ended in Mar. 2026 was €522 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Formula Systems (1985)'s gross profit for the three months ended in Mar. 2026 was €126 Mil. Formula Systems (1985)'s Revenue for the three months ended in Mar. 2026 was €639 Mil. Therefore, Formula Systems (1985)'s Gross Margin % for the quarter that ended in Mar. 2026 was 19.78%.

Formula Systems (1985) had a gross margin of 19.78% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin % of Formula Systems (1985) was 24.20%. The lowest was 19.76%. And the median was 22.51%.

Warning Sign:

Formula Systems (1985) Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.1%.


Formula Systems (1985)  (FRA:FSY) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Formula Systems (1985) had a gross margin of 19.78% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage


Formula Systems (1985) Gross Profit Related Terms


Formula Systems (1985) Gross Profit Historical Data

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The historical data trend for Formula Systems (1985)'s Gross Profit 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.

Formula Systems (1985) Gross Profit Chart

Formula Systems (1985) Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 499.02 587.61 386.24 425.70 443.36

Formula Systems (1985) Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 111.21 160.82 115.62 119.66 126.32

FRA:FSY vs IBM, ACN, FISV: Gross Profit Comparison

For the Information Technology Services subindustry, Formula Systems (1985)'s Gross Profit, along with its competitors' market caps and Gross Profit 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) Gross Profit vs Software Industry

For the Software industry and Technology sector, Formula Systems (1985)'s Gross Profit distribution charts can be found below:

* The bar in red indicates where Formula Systems (1985)'s Gross Profit falls into.


FRA:FSY
64GF Score
Formula Systems (1985) Ltd FRA:FSY
Gross Profit is just one metric. See GF Score™, valuation, warning signs, and more.
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Formula Systems (1985) Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Formula Systems (1985)'s Gross Profit for the fiscal year that ended in Dec. 2025 is calculated as

Gross Profit (A: Dec. 2025 )=Revenue - Cost of Goods Sold
=2243.564 - 1800.2
=443

Formula Systems (1985)'s Gross Profit for the quarter that ended in Mar. 2026 is calculated as

Gross Profit (Q: Mar. 2026 )=Revenue - Cost of Goods Sold
=638.617 - 512.296
=126

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €522 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Formula Systems (1985)'s Gross Margin % for the quarter that ended in Mar. 2026 is calculated as

Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=(Revenue - Cost of Goods Sold) / Revenue
=126 / 638.617
=19.78 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequently Asked Questions Learn more about Gross Profit →
What does a Gross Profit of €522 Mil mean?
Formula Systems (1985) (FRA:FSY) has a Gross Profit of €522 Mil as of Mar. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on Formula Systems (1985) and its competitors.
Is Formula Systems (1985)'s Gross Profit too high?
Formula Systems (1985)'s current Gross Profit is €522 Mil. Overall, Formula Systems (1985) has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Gross Profit compare to IBM and ACN?
Formula Systems (1985)'s Gross Profit of €522 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Software company?
A good Gross Profit depends on the Software industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on Formula Systems (1985) and its competitors. Formula Systems (1985)'s current Gross Profit is €522 Mil. 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 €100.76, compared to a current price of €86.50 — trading 14.2% below its estimated fair value. The current Gross Profit is €522 Mil. Formula Systems (1985)'s overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Gross Profit is €522 Mil 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 €86.50 is trading 14.2% below its estimated GF Value™ of €100.76. GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.

Key valuation signals for FRA:FSY:

  • Gross Profit: €522 Mil
  • GF Value™: €100.76 vs. price of €86.50 (14.2% below fair value)
  • GF Score™: 64/100 with 4 warning signs

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) Business Description

Other Exchanges FORTY:USAFORTY:Israel
Address Terminal Center, 1 Yahadut Canada Street, Or Yehuda, Tel Aviv, ISR, 6037501
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.
64GF Score

Get the complete analysis for FRA:FSY

Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€86.50
Price
€100.76
GF Value