Formula Systems (1985)FRA:FSY +0.57%66 Pretax Margin % is 10.54% as of Mar. 2026, which is 51% above its 10-year median of 6.99. 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 2,825 Software companies, Formula Systems (1985) ranks better than 60.25% on this metric.
The historical rank and industry rank for Formula Systems (1985)'s Pretax Margin % or its related term are showing as below:
FRA:FSY'
s Pretax Margin % Range Over the Past 10 Years
Min: 3.81 Med: 6.99 Max: 9.98
Current: 6.9
FRA:FSY's Pretax Margin % is ranked better than 60.25% of 2825
companies
in the Software industry
Industry Median: 3.53
vs FRA:FSY: 6.90
Formula Systems (1985) (FRA:FSY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Formula Systems (1985) Pretax Margin % Related Terms
Formula Systems (1985) Pretax Margin % Historical Data
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The historical data trend for Formula Systems (1985)'s Pretax Margin % 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: Pretax Margin % Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s Pretax Margin %, along with its competitors' market caps and Pretax 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) Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s Pretax 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) (FRA:FSY) has a Pretax Margin % of 10.54% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Formula Systems (1985) and its competitors. This is 51% above median its historical median of 6.99. Over the past decade, Formula Systems (1985)'s Pretax Margin % has ranged from 3.81 to 9.98. According to the industry distribution chart, Formula Systems (1985) ranks #1123 out of 2825 companies in the Software industry, placing it in the top 39.8%.
Is Formula Systems (1985)'s Pretax Margin % too high?
Formula Systems (1985)'s current Pretax Margin % of 10.54% is 51% above median its 10-year median of 6.99. Over the past 10 years, this metric has ranged from a low of 3.81 to a high of 9.98. The Software industry median Pretax Margin % is 3.53. Formula Systems (1985)'s value of 10.54% is 198.6% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #1123 out of 2825 companies in the Software industry, which is above 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 Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #1123 out of 2825 companies for Pretax Margin %. This puts Formula Systems (1985) in the upper half of its industry. The industry median Pretax Margin % is 3.53. Formula Systems (1985)'s value of 10.54% is 198.6% above this benchmark. Historically, Formula Systems (1985)'s own Pretax Margin % has ranged from 3.81 to 9.98 over the past decade. While the company's 10-year median is 6.99 vs. the industry median of 3.53, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current Pretax Margin % of 10.54% is 198.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current Pretax Margin % is 10.54%, which is 51% above median its own 10-year median of 6.99. 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 Pretax Margin % is 10.54%, which is 51% above median its 10-year median of 6.99 and 198.6% above the Software industry median of 3.53. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Pretax Margin % is 10.54% 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:
Pretax Margin %: 10.54% (51% above median its 10-year median of 6.99)
GF Value™: €120.75 vs. price of €87.50 (27.5% below fair value)
Industry Position: 198.6% above the Software median (#1123 of 2825)
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.
66GF Score
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