Formula Systems (1985)FORTY 73 Net Margin % is 4.83% as of Mar. 2026, which is 106% above its 10-year median of 2.35. GuruFocus rates FORTY with a GF Score™ of 73/100 and a GF Value™ of $120.11 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,825 Software companies, Formula Systems (1985) ranks better than 91.26% on this metric.
The historical rank and industry rank for Formula Systems (1985)'s Net Margin % or its related term are showing as below:
FORTY'
s Net Margin % Range Over the Past 10 Years
Min: 0.76 Med: 2.35 Max: 23.09
Current: 21.58
FORTY's Net Margin % is ranked better than 91.26% of 2825
companies
in the Software industry
Industry Median: 2.54
vs FORTY: 21.58
Formula Systems (1985) (NAS:FORTY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Formula Systems (1985) Net Margin % Related Terms
Formula Systems (1985) Net Margin % 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.
For the Information Technology Services subindustry, Formula Systems (1985)'s Net Margin %, along with its competitors' market caps and Net Margin % 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) Net Margin % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Net Margin % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Net Margin % 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) (FORTY) has a Net Margin % of 4.83% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Formula Systems (1985) and its competitors. This is 106% above median its historical median of 2.35. Over the past decade, Formula Systems (1985)'s Net Margin % has ranged from 0.76 to 23.09. According to the industry distribution chart, Formula Systems (1985) ranks #247 out of 2825 companies in the Software industry, placing it in the top 8.7%.
Is Formula Systems (1985)'s Net Margin % too high?
Formula Systems (1985)'s current Net Margin % of 4.83% is 106% above median its 10-year median of 2.35. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 23.09. The Software industry median Net Margin % is 2.54. Formula Systems (1985)'s value of 4.83% is 90.2% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #247 out of 2825 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 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #247 out of 2825 companies for Net Margin %. This places Formula Systems (1985) in the top 9% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Formula Systems (1985)'s value of 4.83% is 90.2% above this benchmark. Historically, Formula Systems (1985)'s own Net Margin % has ranged from 0.76 to 23.09 over the past decade. While the company's 10-year median is 2.35 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Net Margin % of 4.83% is 90.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Net Margin % is 4.83%, which is 106% above median its own 10-year median of 2.35. 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) (FORTY) is currently considered Modestly Undervalued. The stock's GF Value™ is $120.11, compared to a current price of $106.50 — trading 11.3% below its estimated fair value. The current Net Margin % is 4.83%, which is 106% above median its 10-year median of 2.35 and 90.2% above the Software industry median of 2.54. Formula Systems (1985)'s overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Formula Systems (1985) (FORTY), the current Net Margin % is 4.83% 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) (FORTY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of $106.50 is trading 11.3% below its estimated GF Value™ of $120.11.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FORTY:
Net Margin %: 4.83% (106% above median its 10-year median of 2.35)
GF Value™: $120.11 vs. price of $106.50 (11.3% below fair value)
Industry Position: 90.2% above the Software median (#247 of 2825)
No single metric tells the full story. See the FORTY 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.
73GF Score
Get the complete analysis for FORTY
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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