Formula Systems (1985) (FRA:FSY) Profitability Rank: 6 (As of Mar. 2026) — 25% Below Median

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FRA:FSY Formula Systems (1985) Ltd FRA:FSY
64 GF Score
Price €87.50
GF Value €100.75
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Formula Systems (1985) Profitability Rank?

Formula Systems (1985) FRA:FSY +0.57% 64 Profitability Rank is 6 as of Mar. 2026, which is 25% below its 10-year median of 8.00. GuruFocus rates FRA:FSY with a GF Score™ of 64/100 and a GF Value™ of €100.75 (Modestly Undervalued). The stock has 4 warning signs investors should review.

Formula Systems (1985) has the Profitability Rank of 6.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Formula Systems (1985)'s Operating Margin % for the quarter that ended in Mar. 2026 was 11.11%. As of today, Formula Systems (1985)'s Piotroski F-Score is 6.


Formula Systems (1985) Profitability Rank Related Terms


FRA:FSY vs IBM, ACN, FISV: Profitability Rank Comparison

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

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

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


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

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Formula Systems (1985) has the Profitability Rank of 6.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=70.934 / 638.617
=11.11 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Formula Systems (1985) has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Formula Systems (1985) Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.3%.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 6 mean?
Formula Systems (1985) (FRA:FSY) has a Profitability Rank of 6 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Formula Systems (1985) and its competitors. This is 25% below median its historical median of 8.00. Over the past decade, Formula Systems (1985)'s Profitability Rank has ranged from 6.00 to 10.00.
Is Formula Systems (1985)'s Profitability Rank too high?
Formula Systems (1985)'s current Profitability Rank of 6 is 25% below median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 10.00. 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 Profitability Rank compare to IBM and ACN?
Formula Systems (1985)'s Profitability Rank of 6 can be compared against companies in the Software industry. Historically, Formula Systems (1985)'s own Profitability Rank has ranged from 6.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Software company?
A good Profitability Rank depends on the Software industry context. However, Profitability Rank 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 Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Formula Systems (1985) and its competitors. Formula Systems (1985)'s current Profitability Rank is 6, which is 25% below median its own 10-year median of 8.00. 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 €100.75, compared to a current price of €87.50 — trading 13.2% below its estimated fair value. The current Profitability Rank is 6, which is 25% below median its 10-year median of 8.00. 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 Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current Profitability Rank is 6 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 13.2% below its estimated GF Value™ of €100.75. GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.

Key valuation signals for FRA:FSY:

  • Profitability Rank: 6 (25% below median its 10-year median of 8.00)
  • GF Value™: €100.75 vs. price of €87.50 (13.2% 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

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

€87.50
Price
€100.75
GF Value