Formula Systems (1985)FORTY 73 ROE % is 10.41% as of Mar. 2026, which is 1% above its 10-year median of 10.29. 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 2,681 Software companies, Formula Systems (1985) ranks better than 96.79% on this metric.
The historical rank and industry rank for Formula Systems (1985)'s ROE % or its related term are showing as below:
FORTY'
s ROE % Range Over the Past 10 Years
Min: 2.98 Med: 10.29 Max: 63.3
Current: 63.3
During the past 13 years, Formula Systems (1985)'s highest ROE % was 63.30%. The lowest was 2.98%. And the median was 10.29%.
FORTY's ROE % is ranked better than 96.79% of 2681
companies
in the Software industry
Industry Median: 4.73
vs FORTY: 63.30
Formula Systems (1985) (NAS:FORTY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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) ROE % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s ROE % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Formula Systems (1985) (FORTY) has a ROE % of 10.41% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Formula Systems (1985) and its competitors. This is near median its historical median of 10.29. Over the past decade, Formula Systems (1985)'s ROE % has ranged from 2.98 to 63.30. According to the industry distribution chart, Formula Systems (1985) ranks #86 out of 2681 companies in the Software industry, placing it in the top 3.2%.
Is Formula Systems (1985)'s ROE % too high?
Formula Systems (1985)'s current ROE % of 10.41% is near median its 10-year median of 10.29. Over the past 10 years, this metric has ranged from a low of 2.98 to a high of 63.30. The Software industry median ROE % is 4.73. Formula Systems (1985)'s value of 10.41% is 120.1% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #86 out of 2681 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 ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #86 out of 2681 companies for ROE %. This places Formula Systems (1985) in the top 3% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Formula Systems (1985)'s value of 10.41% is 120.1% above this benchmark. Historically, Formula Systems (1985)'s own ROE % has ranged from 2.98 to 63.30 over the past decade. While the company's 10-year median is 10.29 vs. the industry median of 4.73, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.73, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current ROE % of 10.41% is 120.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current ROE % is 10.41%, which is near median its own 10-year median of 10.29. 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 ROE % is 10.41%, which is near median its 10-year median of 10.29 and 120.1% above the Software industry median of 4.73. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Formula Systems (1985) (FORTY), the current ROE % is 10.41% 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:
ROE %: 10.41% (near median its 10-year median of 10.29)
GF Value™: $120.11 vs. price of $106.50 (11.3% below fair value)
Industry Position: 120.1% above the Software median (#86 of 2681)
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
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