Formula Systems (1985)FRA:FSY +4.49%68 5-Year Yield-on-Cost % is 3.11 as of Jul. 09, 2026, which is 22% above its 10-year median of 2.54. GuruFocus rates FRA:FSY with a GF Score™ of 68/100 and a GF Value™ of €100.75 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,029 Software companies, Formula Systems (1985) ranks better than 50.34% on this metric.
Formula Systems (1985)'s yield on cost for the quarter that ended in Mar. 2026 was 3.11.
The historical rank and industry rank for Formula Systems (1985)'s 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:FSY'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.95 Med: 2.54 Max: 5.23
Current: 3.11
During the past 13 years, Formula Systems (1985)'s highest Yield on Cost was 5.23. The lowest was 0.95. And the median was 2.54.
FRA:FSY's 5-Year Yield-on-Cost % is ranked better than 50.34% of 1029
companies
in the Software industry
Industry Median: 3.03
vs FRA:FSY: 3.11
Formula Systems (1985) (FRA:FSY) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Formula Systems (1985) 5-Year Yield-on-Cost % Related Terms
FRA:FSY vs IBM, ACN, FISV: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'s 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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) 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'s 5-Year Yield-on-Cost % falls into.
Formula Systems (1985) 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Formula Systems (1985) (FRA:FSY) has a 5-Year Yield-on-Cost % of 3.11 as of Jul. 09, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Formula Systems (1985) and its competitors. This is 22% above median its historical median of 2.54. Over the past decade, Formula Systems (1985)'s 5-Year Yield-on-Cost % has ranged from 0.95 to 5.23. According to the industry distribution chart, Formula Systems (1985) ranks #511 out of 1029 companies in the Software industry, placing it in the top 49.7%.
Is Formula Systems (1985)'s 5-Year Yield-on-Cost % too high?
Formula Systems (1985)'s current 5-Year Yield-on-Cost % of 3.11 is 22% above median its 10-year median of 2.54. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 5.23. The Software industry median 5-Year Yield-on-Cost % is 3.03. Formula Systems (1985)'s value of 3.11 is 2.6% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #511 out of 1029 companies in the Software industry, which is above the industry midpoint. Overall, Formula Systems (1985) has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s 5-Year Yield-on-Cost % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #511 out of 1029 companies for 5-Year Yield-on-Cost %. This puts Formula Systems (1985) in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.03. Formula Systems (1985)'s value of 3.11 is 2.6% above this benchmark. Historically, Formula Systems (1985)'s own 5-Year Yield-on-Cost % has ranged from 0.95 to 5.23 over the past decade. While the company's 10-year median is 2.54 vs. the industry median of 3.03, 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.03, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formula Systems (1985)'s current 5-Year Yield-on-Cost % of 3.11 is 2.6% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Formula Systems (1985) and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current 5-Year Yield-on-Cost % is 3.11, which is 22% above median its own 10-year median of 2.54. 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 Fairly Valued. The stock's GF Value™ is €100.75, compared to a current price of €93.00 — trading 7.7% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.11, which is 22% above median its 10-year median of 2.54 and 2.6% above the Software industry median of 3.03. Formula Systems (1985)'s overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Formula Systems (1985) (FRA:FSY), the current 5-Year Yield-on-Cost % is 3.11 as of Jul. 09, 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 €93.00 is trading 7.7% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Fairly Valued.
Key valuation signals for FRA:FSY:
5-Year Yield-on-Cost %: 3.11 (22% above median its 10-year median of 2.54)
GF Value™: €100.75 vs. price of €93.00 (7.7% below fair value)
Industry Position: 2.6% above the Software median (#511 of 1029)
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.
68GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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