Formula Debt to Equity
| FORTY Stock | USD 76.61 1.45 1.93% |
Formula Systems 1985 fundamentals help investors to digest information that contributes to Formula Systems' financial success or failures. It also enables traders to predict the movement of Formula Stock. The fundamental analysis module provides a way to measure Formula Systems' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Formula Systems stock.
Debt to Equity Ratio is likely to drop to 2.79 in 2023. Average Equity is likely to drop to about 509.8 M in 2023. Formula | Debt to Equity |
Formula Debt to Equity Analysis
Formula Systems' Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
More About Debt to Equity | All Equity Analysis
| 2020 | 2021 | 2022 | 2023 (projected) | Current Assets | 1.16 B | 1.3 B | 1.37 B | 1.18 B | Total Assets | 2.52 B | 2.75 B | 2.79 B | 2.46 B |
D/E | = | Total Debt Total Equity |
Current Formula Systems Debt to Equity | 0.57 % |
Most of Formula Systems' fundamental indicators, such as Debt to Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Formula Systems 1985 is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Formula Debt to Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Formula Systems is extremely important. It helps to project a fair market value of Formula Stock properly, considering its historical fundamentals such as Debt to Equity. Since Formula Systems' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Formula Systems' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Formula Systems' interrelated accounts and indicators.
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Formula Debt to Equity Historical Pattern
Today, most investors in Formula Systems Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Formula Systems' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's debt to equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Formula Systems debt to equity as a starting point in their analysis.
Formula Systems Debt to Equity |
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High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
| Competition |
Formula Shareholders Equity Attributable to Parent
Shareholders Equity Attributable to Parent |
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According to the company disclosure, Formula Systems 1985 has a Debt to Equity of 0.574%. This is 99.03% lower than that of the IT Services sector and 99.31% lower than that of the Information Technology industry. The debt to equity for all United States stocks is 98.82% higher than that of the company.
Formula Debt to Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Formula Systems' direct or indirect competition against its Debt to Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Formula Systems could also be used in its relative valuation, which is a method of valuing Formula Systems by comparing valuation metrics of similar companies.Formula Systems is currently under evaluation in debt to equity category among related companies.
Formula Systems Current Valuation Drivers
We derive many important indicators used in calculating different scores of Formula Systems from analyzing Formula Systems' financial statements. These drivers represent accounts that assess Formula Systems' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Formula Systems' important valuation drivers and their relationship over time.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Average Assets | 1.62 B | 2 B | 2.26 B | 2.6 B | 2.73 B | 2.37 B | |
| Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 121.25 M | 175.4 M | 203 M | 249.38 M | 279.15 M | 230.46 M | |
| Earnings Before Interest Taxes and Depreciation Amortization USD | 121.25 M | 175.4 M | 203 M | 249.38 M | 279.15 M | 230.46 M | |
| Earnings before Tax | 56.67 M | 66.02 M | 78.05 M | 97.2 M | 136.63 M | 111.25 M | |
| Average Equity | 365.59 M | 412.98 M | 449.79 M | 519.51 M | 544.64 M | 509.82 M | |
| Enterprise Value | 657.52 M | 1.25 B | 1.54 B | 2.18 B | 1.39 B | 1.24 B | |
| Free Cash Flow | 62.58 M | 165.55 M | 262.88 M | 181.19 M | 203.6 M | 169.81 M | |
| Invested Capital | 460.73 M | 763.22 M | 812.38 M | 853.7 M | 871.88 M | 769.46 M | |
| Invested Capital Average | 430.55 M | 747.13 M | 808.31 M | 846.26 M | 852.94 M | 763.85 M | |
| Market Capitalization | 525.29 M | 999.79 M | 1.31 B | 1.9 B | 1.08 B | 1.01 B | |
| Tangible Asset Value | 873.33 M | 1.2 B | 1.43 B | 1.57 B | 1.65 B | 1.42 B | |
| Working Capital | 255.57 M | 294.11 M | 380.97 M | 354.52 M | 370.51 M | 352.26 M |
Formula Fundamentals
| Return On Equity | 0.14 | |||
| Return On Asset | 0.0559 | |||
| Profit Margin | 0.0249 % | |||
| Operating Margin | 0.09 % | |||
| Current Valuation | 2.06 B | |||
| Shares Outstanding | 15.33 M | |||
| Shares Owned by Insiders | 5.93 % | |||
| Shares Owned by Institutions | 3.86 % | |||
| Number of Shares Shorted | 2.97 K | |||
| Price to Earning | 27.39 X | |||
| Price to Book | 2.11 X | |||
| Price to Sales | 0.46 X | |||
| Revenue | 2.57 B | |||
| Gross Profit | 622.47 M | |||
| EBITDA | 232.38 M | |||
| Net Income | 199.67 M | |||
| Cash and Equivalents | 451.47 M | |||
| Cash per Share | 29.52 X | |||
| Total Debt | 772.67 M | |||
| Debt to Equity | 0.57 % | |||
| Current Ratio | 1.32 X | |||
| Book Value Per Share | 37.65 X | |||
| Cash Flow from Operations | 239.14 M | |||
| Short Ratio | 10.29 X | |||
| Earnings Per Share | 4.14 X | |||
| Number of Employees | 22.06 K | |||
| Beta | 0.45 | |||
| Market Capitalization | 1.15 B | |||
| Total Asset | 2.79 B | |||
| Retained Earnings | 419.45 M | |||
| Working Capital | 370.13 M | |||
| Current Asset | 357.48 M | |||
| Current Liabilities | 211.81 M | |||
| Z Score | 2.46 | |||
| Annual Yield | 0.0168 % | |||
| Five Year Return | 1.41 % | |||
| Net Asset | 2.79 B |
About Formula Systems Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Formula Systems 1985's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Formula Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Formula Systems 1985 based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for 2023 | ||
| Debt to Equity Ratio | 2.93 | 2.79 | |
| Average Equity | 544.6 M | 509.8 M |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Formula Systems in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Formula Systems' short interest history, or implied volatility extrapolated from Formula Systems options trading.
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Check out Formula Systems Piotroski F Score and Formula Systems Altman Z Score analysis. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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When running Formula Systems' price analysis, check to measure Formula Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formula Systems is operating at the current time. Most of Formula Systems' value examination focuses on studying past and present price action to predict the probability of Formula Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formula Systems' price. Additionally, you may evaluate how the addition of Formula Systems to your portfolios can decrease your overall portfolio volatility.
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Is Formula Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Formula Systems. If investors know Formula will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Formula Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.48) | Earnings Share 4.14 | Revenue Per Share 170.63 | Quarterly Revenue Growth 0.017 | Return On Assets 0.0559 |
The market value of Formula Systems 1985 is measured differently than its book value, which is the value of Formula that is recorded on the company's balance sheet. Investors also form their own opinion of Formula Systems' value that differs from its market value or its book value, called intrinsic value, which is Formula Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Formula Systems' market value can be influenced by many factors that don't directly affect Formula Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Formula Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Formula Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Formula Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.