Formula Z Score

FORTY Stock  USD 71.75  3.71  5.45%   
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out Formula Systems Piotroski F Score and Formula Systems Valuation analysis.
  
Capital Expenditure is likely to drop to about (36.5 M) in 2023. Return on Invested Capital is likely to drop to 0.17 in 2023. Formula Systems Net Income to Non Controlling Interests is fairly stable at the moment as compared to the past year. Formula Systems reported Net Income to Non Controlling Interests of 118.27 Million in 2022. Operating Income is likely to rise to about 298.5 M in 2023, whereas Consolidated Income is likely to drop slightly above 158.8 M in 2023.

Formula Z Score Analysis

Formula Systems' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2020 2021 2022 2023 (projected)
Current Assets1.16 B1.3 B1.37 B1.18 B
Total Assets2.52 B2.75 B2.79 B2.46 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Formula Systems Z Score

    
  3.05  
Most of Formula Systems' fundamental indicators, such as Z Score, 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.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Formula Z Score 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 Z Score. 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.
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Competition

According to the company's disclosures, Formula Systems 1985 has a Z Score of 3.05. This is 77.32% lower than that of the IT Services sector and 60.8% lower than that of the Information Technology industry. The z score for all United States stocks is 65.02% higher than that of the company.

Formula Z Score 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 Z Score 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 z score 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.
201820192020202120222023 (projected)
Average Assets1.62 B2 B2.26 B2.6 B2.73 B2.37 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA121.25 M175.4 M203 M249.38 M279.15 M230.46 M
Earnings Before Interest Taxes and Depreciation Amortization USD121.25 M175.4 M203 M249.38 M279.15 M230.46 M
Earnings before Tax56.67 M66.02 M78.05 M97.2 M136.63 M111.25 M
Average Equity365.59 M412.98 M449.79 M519.51 M544.64 M509.82 M
Enterprise Value657.52 M1.25 B1.54 B2.18 B1.39 B1.24 B
Free Cash Flow62.58 M165.55 M262.88 M181.19 M203.6 M169.81 M
Invested Capital460.73 M763.22 M812.38 M853.7 M871.88 M769.46 M
Invested Capital Average430.55 M747.13 M808.31 M846.26 M852.94 M763.85 M
Market Capitalization525.29 M999.79 M1.31 B1.9 B1.08 B1.01 B
Tangible Asset Value873.33 M1.2 B1.43 B1.57 B1.65 B1.42 B
Working Capital255.57 M294.11 M380.97 M354.52 M370.51 M352.26 M

Formula Systems Institutional Holders

Institutional Holdings refers to the ownership stake in Formula Systems that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Formula Systems' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Formula Systems' value.
Last TransactionTypeSharesValue
Jane Street Group Llc2022-12-31Common Shares13.4 K946.5 K
Altshuler Shaham Ltd2023-03-31Common Shares13.4 K880.2 K
Ghp Investment Advisors Inc2023-03-31Common SharesK456.9 K
Tfg Advisers Llc2023-03-31Common Shares6.9 K450.4 K
Dimensional Fund Advisors Lp2023-03-31Common Shares4.3 K282.8 K
Naples Global Advisors Llc2022-09-30Common Shares2.8 K231 K
Morgan Stanley2023-03-31Common Shares2.9 K191.7 K
Blackrock Inc2023-03-31Common SharesK67.5 K
Bank Of America Corp2023-03-31Common Shares100065.6 K
Ubs Group Ag2023-03-31Common Shares62040.7 K
Fmr Llc2023-03-31Common Shares22114.5 K

Formula Fundamentals

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.
Formula Systems Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, and computer infrastructure and integration solutions worldwide. Formula Systems Ltd. was incorporated in 1985 and is headquartered in Or Yehuda, Israel. Formula Sys operates under Information Technology Services classification in the United States and is traded on NASDAQ Exchange. It employs 20333 people.

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Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Formula Systems 1985 using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Check out Formula Systems Piotroski F Score and Formula Systems Valuation analysis. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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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
(0.023) 
Earnings Share
5.18
Revenue Per Share
168.172
Quarterly Revenue Growth
(0.036) 
Return On Assets
0.0524
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.