Formula Systems (1985)FRA:FSY -0.57%69 ROC (Joel Greenblatt) % is 168.25% as of Mar. 2026, which is 91% above its 10-year median of 88.28. GuruFocus rates FRA:FSY with a GF Score™ of 69/100 and a GF Value™ of €106.84 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,801 Software companies, Formula Systems (1985) ranks better than 68.37% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Formula Systems (1985)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 168.25%.
The historical rank and industry rank for Formula Systems (1985)'s ROC (Joel Greenblatt) % or its related term are showing as below:
FRA:FSY'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 67.86 Med: 88.28 Max: 120.09
Current: 76.69
During the past 13 years, Formula Systems (1985)'s highest ROC (Joel Greenblatt) % was 120.09%. The lowest was 67.86%. And the median was 88.28%.
FRA:FSY's ROC (Joel Greenblatt) % is ranked better than 68.37% of 2801
companies
in the Software industry
Industry Median: 19.63
vs FRA:FSY: 76.69
Formula Systems (1985)'s 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -2.90% per year.
Formula Systems (1985) (FRA:FSY) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Formula Systems (1985) ROC (Joel Greenblatt) % Related Terms
Formula Systems (1985) ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Formula Systems (1985)'s ROC (Joel Greenblatt) % 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) ROC (Joel Greenblatt) % Chart
FRA:FSY vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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) ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s ROC (Joel Greenblatt) % falls into.
Formula Systems (1985) ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 168.25% mean?
Formula Systems (1985) (FRA:FSY) has a ROC (Joel Greenblatt) % of 168.25% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Formula Systems (1985) and its competitors. This is 91% above median its historical median of 88.28. Over the past decade, Formula Systems (1985)'s ROC (Joel Greenblatt) % has ranged from 67.86 to 120.09. According to the industry distribution chart, Formula Systems (1985) ranks #886 out of 2801 companies in the Software industry, placing it in the top 31.6%.
Is Formula Systems (1985)'s ROC (Joel Greenblatt) % too high?
Formula Systems (1985)'s current ROC (Joel Greenblatt) % of 168.25% is 91% above median its 10-year median of 88.28. Over the past 10 years, this metric has ranged from a low of 67.86 to a high of 120.09. The Software industry median ROC (Joel Greenblatt) % is 19.63. Formula Systems (1985)'s value of 168.25% is 757.1% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #886 out of 2801 companies in the Software industry, which is above the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #886 out of 2801 companies for ROC (Joel Greenblatt) %. This puts Formula Systems (1985) in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 19.63. Formula Systems (1985)'s value of 168.25% is 757.1% above this benchmark. Historically, Formula Systems (1985)'s own ROC (Joel Greenblatt) % has ranged from 67.86 to 120.09 over the past decade. While the company's 10-year median is 88.28 vs. the industry median of 19.63, 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 ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.63, based on 2,801 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current ROC (Joel Greenblatt) % of 168.25% is 757.1% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current ROC (Joel Greenblatt) % is 168.25%, which is 91% above median its own 10-year median of 88.28. 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 €106.84, compared to a current price of €87.50 — trading 18.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 168.25%, which is 91% above median its 10-year median of 88.28 and 757.1% above the Software industry median of 19.63. Formula Systems (1985)'s overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current ROC (Joel Greenblatt) % is 168.25% 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 18.1% below its estimated GF Value™ of €106.84.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
ROC (Joel Greenblatt) %: 168.25% (91% above median its 10-year median of 88.28)
GF Value™: €106.84 vs. price of €87.50 (18.1% below fair value)
Industry Position: 757.1% above the Software median (#886 of 2801)
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.
69GF Score
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