Formula Systems (1985) (FRA:FSY) Moat Score: 5/10 (As of Jun. 29, 2026)


FRA:FSY Formula Systems (1985) Ltd FRA:FSY
71 GF Score
Price €87.50
GF Value €120.75
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Formula Systems (1985) Moat Score?

Formula Systems (1985) FRA:FSY +0.57% 71 Moat Score is 5 as of Jun. 29, 2026. 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 2,845 Software companies, Formula Systems (1985) ranks better than 94.8% on this metric.

Formula Systems (1985) has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Formula Systems (1985) has Narrow Moat: Formula Systems has a solid narrow moat due to its strong brand in IT services and software solutions. It benefits from customer loyalty and switching costs due to integrated solutions. However, it lacks significant network effects and regulatory barriers, limiting its moat to a narrow category.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Formula Systems (1985) might have Narrow Moat - Solid narrow moat.

Formula Systems (1985)  (FRA:FSY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Formula Systems (1985) Moat Score Related Terms

FRA:FSY vs IBM, ACN, FISV: Moat Score Comparison

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

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

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


FRA:FSY
71GF Score
Formula Systems (1985) Ltd FRA:FSY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Formula Systems (1985) (FRA:FSY) has a Moat Score of 5 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Formula Systems (1985) ranks #148 out of 2845 companies in the Software industry, placing it in the top 5.2%.
Is Formula Systems (1985)'s Moat Score too high?
Formula Systems (1985)'s current Moat Score is 5. Based on the distribution chart, Formula Systems (1985) ranks #148 out of 2845 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 Moat Score compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #148 out of 2845 companies for Moat Score. This places Formula Systems (1985) in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Formula Systems (1985)'s current Moat Score is 5. 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 Moat Score is 5. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Moat Score is 5 as of Jun. 29, 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:

  • Moat Score: 5
  • GF Value™: €120.75 vs. price of €87.50 (27.5% below fair value)
  • GF Score™: 71/100 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.
71GF Score

Get the complete analysis for FRA:FSY

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

€87.50
Price
€120.75
GF Value