Formula Systems (1985) (FRA:FSY) Dividend Payout Ratio: 0.23 (As of Mar. 2026) — 43% Below Median


FRA:FSY Formula Systems (1985) Ltd FRA:FSY
66 GF Score
Price €87.50
GF Value €120.75
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Formula Systems (1985) Dividend Payout Ratio?

Formula Systems (1985) FRA:FSY +0.57% 66 Dividend Payout Ratio is 0.23 as of Mar. 2026, which is 43% below its 10-year median of 0.40. GuruFocus rates FRA:FSY with a GF Score™ of 66/100 and a GF Value™ of €120.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 864 Software companies, Formula Systems (1985) ranks worse than 67.36% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Formula Systems (1985)'s Dividend Payout Ratio for the months ended in Mar. 2026 was 0.23.

The historical rank and industry rank for Formula Systems (1985)'s Dividend Payout Ratio or its related term are showing as below:

FRA:FSY' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.17   Med: 0.4   Max: 0.72
Current: 0.59

During the past 13 years, the highest Dividend Payout Ratio of Formula Systems (1985) was 0.72. The lowest was 0.17. And the median was 0.40.

FRA:FSY's Dividend Payout Ratio is ranked worse than
67.36% of 864 companies
in the Software industry
Industry Median: 0.41 vs FRA:FSY: 0.59

As of today (2026-06-28), the Dividend Yield % of Formula Systems (1985) is 1.49%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Formula Systems (1985) was 2.43%. The lowest was 0.44%. And the median was 1.18%.

Formula Systems (1985)'s Dividends per Share for the months ended in Mar. 2026 was €0.45.

During the past 12 months, Formula Systems (1985)'s average Dividends Per Share Growth Rate was 291.50% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 11.50% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 16.00% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 7.30% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Formula Systems (1985) was 46.30% per year. The lowest was -42.00% per year. And the median was 0.40% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Formula Systems (1985) (FRA:FSY) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Formula Systems (1985) Dividend Payout Ratio Related Terms

Formula Systems (1985) Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Formula Systems (1985)'s Dividend Payout Ratio 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) Dividend Payout Ratio Chart

Formula Systems (1985) Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.41 0.46 0.27 0.40 0.67

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
Dividend Payout Ratio 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 0.00 1.02 0.64 1.92 0.23

FRA:FSY vs IBM, ACN, FISV: Dividend Payout Ratio Comparison

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

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

* The bar in red indicates where Formula Systems (1985)'s Dividend Payout Ratio falls into.


FRA:FSY
66GF Score
Formula Systems (1985) Ltd FRA:FSY
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Formula Systems (1985) Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

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

Dividend Payout Ratio=Dividends per Share (A: Dec. 2025 )/ EPS without NRI (A: Dec. 2025 )
=1.675/ 2.49
=0.67

Formula Systems (1985)'s Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=0.449/ 1.946
=0.23

* 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.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.23 mean?
Formula Systems (1985) (FRA:FSY) has a Dividend Payout Ratio of 0.23 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Formula Systems (1985) and its competitors. This is 43% below median its historical median of 0.40. Over the past decade, Formula Systems (1985)'s Dividend Payout Ratio has ranged from 0.17 to 0.72. According to the industry distribution chart, Formula Systems (1985) ranks #582 out of 864 companies in the Software industry, placing it in the top 67.4%.
Is Formula Systems (1985)'s Dividend Payout Ratio too high?
Formula Systems (1985)'s current Dividend Payout Ratio of 0.23 is 43% below median its 10-year median of 0.40. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.72. The Software industry median Dividend Payout Ratio is 0.41. Formula Systems (1985)'s value of 0.23 is 43.9% below this industry median. Based on the distribution chart, Formula Systems (1985) ranks #582 out of 864 companies in the Software industry, which is below the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s Dividend Payout Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #582 out of 864 companies for Dividend Payout Ratio. This places Formula Systems (1985) in the lower half of its industry. The industry median Dividend Payout Ratio is 0.41. Formula Systems (1985)'s value of 0.23 is 43.9% below this benchmark. Historically, Formula Systems (1985)'s own Dividend Payout Ratio has ranged from 0.17 to 0.72 over the past decade. While the company's 10-year median is 0.40 vs. the industry median of 0.41, 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 Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.41, based on 864 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Dividend Payout Ratio of 0.23 is 43.9% 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Dividend Payout Ratio is 0.23, which is 43% below median its own 10-year median of 0.40. 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 Dividend Payout Ratio is 0.23, which is 43% below median its 10-year median of 0.40 and 43.9% below the Software industry median of 0.41. Formula Systems (1985)'s overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Dividend Payout Ratio is 0.23 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:

  • Dividend Payout Ratio: 0.23 (43% below median its 10-year median of 0.40)
  • GF Value™: €120.75 vs. price of €87.50 (27.5% below fair value)
  • GF Score™: 66/100 with 4 warning signs
  • Industry Position: 43.9% below the Software median (#582 of 864)

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.
66GF Score

Get the complete analysis for FRA:FSY

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

€87.50
Price
€120.75
GF Value