FORMULA SYSTEMS (1985) LTD (FORTY) Financial Ratio Screen

NASDAQ Technology Israel USD 1928M
RATIOS FAIL*
Automated financial screen · activity assessed separately
FORMULA SYSTEMS (1985) LTD (FORTY) is potentially non-compliant in the automated ratio model. While the debt ratio of 16.5% is acceptable, the cash and interest-bearing securities ratio of 35.7% exceeds the 30% threshold. FORMULA SYSTEMS (1985) LTD operates in the Technology sector.

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MSCI new-inclusion financial-ratio snapshot

FORTY financial screening at a glance

RATIOS FAIL*Financial ratios shown separately from business review — not a fatwa
Debt ratio
16.5%
Pass vs 30%
Cash ratio
35.7%
Fail vs 30%
Receivables + cash
58.4%
Fail vs 30%
Impermissible income
0.5%
Pass vs 5%

Calculation date: 2026-08-31. Financial period used: December 2025. The ratios are automated proxies inspired by published methodologies; they are not official index determinations.

Independent method comparison

What the available screens say

How MSCI, FTSE and S&P-style screens differ
Request this stock review
MSCI-styleFinancial criteria not metAt least one available ratio exceeds its threshold
FTSE/Yasaar-styleFinancial criteria not metAt least one available ratio exceeds its threshold
S&P-style provisionalNot yet availableRequired denominator or financial data is incomplete
Business activityAssessment pendingFinancial results do not determine business permissibility
Complete screening result: not yet completeA complete result requires both supported financial criteria and adequate activity evidence. This site does not issue a fatwa or official index decision.
Financial periodDecember 2025Calculation date2026-08-31S&P-style historynot availableLast activity reviewnot yet reviewed

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Business activity evidence

Activity assessment in progress

The supplied classification (Information Technology Services) is only a starting point. Revenue evidence is being assessed before any complete screening conclusion.

Revenue segments: Not yet checked against an SEC annual filing.

Profile description reviewed: Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology company in Israel and internationally. The company offers software consulting services; IT solutions and software systems; proprietary software solutions; and IT professional services, including implementation and integration projects of computing and software, outsourcing, software project management and development, IT managed services, operation of a network of training and instruction centers, sale of software and hardware products, and software testing and QA. It also provides cloud and computing infrastructure; packaged software solutions, such as Clicks for medical record information management systems, Hermes Cargo for managing air cargo ground handling, HR Pulse for the creation of HCM solutions, MBS solution for managing TV broadcast channels, Nativ for managing rehabilitation centers, and Mobisale for consumer goods sale and distribution; and product-related services comprising maintenance, customer support, and training. In addition, the company offers software solutions and services for payroll processing, pension administration, workforce management, and human resources, as well as financial processes, accounting workflows, and business operations; employees to vendor management systems workforce management program accounts; and digital advertising and e-commerce platforms, as well as digital services, which include search engine marketing and optimization, website design, management of social media, online business cards, and big data. Further, it is involved in aerial and satellite mapping, geographic data collection and processing, and geographic applications; installation of computer communication infrastructures, announcement and alarm systems, and electronic security systems; and planning and deployment of fiber optics, structured cabling, and coaxial and telephony systems. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.

Sources to verify: Secondary company profile and classification · Issuer website · SEC issuer filings

A sector label or company description can flag a risk but cannot establish a compliant-revenue percentage. Only sourced segment disclosures may support that calculation.

Published-ratio reproductions (not certifications)

The table shows implemented MSCI and FTSE/Yasaar-style asset-based models plus a provisional S&P-style leverage reconstruction where a complete 36-month denominator exists. These are independent calculations, not official index results or Shariah determinations. See formulas, sources and limitations.

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
MSCI 16.5%
/ 30%
35.7%
/ 30%
58.4%
/ 30%
0.52%
/ 5%
RATIOS FAIL*
FTSE 16.5%
/ 33%
35.7%
/ 33%
58.4%
/ 50%
0.52%
/ 5%
RATIOS FAIL*

Financial Highlights

P/E Ratio
26.7
EPS
$4.71
Dividend Yield
212.0%
Payout: 22.0%
P/B Ratio
1.6
EV/EBITDA
6.6
EV: $2.2B
Revenue
$2.6B
Growth: 5.3%
Beta
0.1
Low volatility
Current Ratio
1.5

Profitability

Gross Margin 19.8%
Operating Margin 9.2%
Net Margin 21.6%
Return on Equity (ROE) 10.4%
Return on Assets (ROA) 4.7%

Cash Flow & Balance Sheet

Operating Cash Flow$382M
Free Cash Flow$354M
Total Debt$592M
Debt-to-Equity40.5
Current Ratio1.5
Total Assets$3.6B

Price & Trading

Last Close$125.72
50-Day MA$110.34
200-Day MA$135.04
Avg Volume420
Beta0.1
52-Week Range
$102.01
$190.56

Financial data provenance and verification

The displayed fields were imported from yfinance on 2026-08-31 for the financial period December 2025. This is a secondary data feed and can differ from amended or newly filed statements.

Verification rule: check debt, cash, receivables, revenue and interest income against the latest primary filing before relying on an automated ratio.

About FORMULA SYSTEMS (1985) LTD (FORTY)

CEO
Mr. Guy Bernstein CPA
Employees
19,337
Sector
Technology
Industry
Information Technology Services
Country
Israel
Exchange
NASDAQ
Market Cap (listing currency)
USD 1928M
Currency
USD

Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology company in Israel and internationally. The company offers software consulting services; IT solutions and software systems; proprietary software solutions; and IT professional services, including implementation and integration projects of computing and software, outsourcing, software project management and development, IT managed services, operation of a network of training and instruction centers, sale of software and hardware products, and software testing and QA. It also provides cloud and computing infrastructure; packaged software solutions, such as Clicks for medical record information management systems, Hermes Cargo for managing air cargo ground handling, HR Pulse for the creation of HCM solutions, MBS solution for managing TV broadcast channels, Nativ for managing rehabilitation centers, and Mobisale for consumer goods sale and distribution; and product-related services comprising maintenance, customer support, and training. In addition, the company offers software solutions and services for payroll processing, pension administration, workforce management, and human resources, as well as financial processes, accounting workflows, and business operations; employees to vendor management systems workforce management program accounts; and digital advertising and e-commerce platforms, as well as digital services, which include search engine marketing and optimization, website design, management of social media, online business cards, and big data. Further, it is involved in aerial and satellite mapping, geographic data collection and processing, and geographic applications; installation of computer communication infrastructures, announcement and alarm systems, and electronic security systems; and planning and deployment of fiber optics, structured cabling, and coaxial and telephony systems. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.

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Frequently Asked Questions

Is FORMULA SYSTEMS (1985) LTD (FORTY) halal to invest in?

The current automated result is Financial criteria not met or an activity exclusion was detected. It uses available public financial fields and simplified methodology proxies. It is not a fatwa or an official determination by AAOIFI, DJIM, MSCI, S&P, or FTSE.

What is FORMULA SYSTEMS (1985) LTD's debt ratio?

FORMULA SYSTEMS (1985) LTD's debt ratio is 16.5% in the MSCI new-inclusion reproduction: total debt divided by total assets, against a 30% threshold. See the methodology page for the official source and limitations.

What are FORMULA SYSTEMS (1985) LTD's key financial metrics?

FORMULA SYSTEMS (1985) LTD has a market capitalization of USD 1928M in its listing currency, trailing P/E ratio of 26.7, and revenue of $2.6B. The company maintains a gross margin of 19.8% and a net margin of 21.6%. Return on equity stands at 10.4%.

How often is the screening data updated?

Calculation date: 2026-08-31. Financial period: December 2025. These dates are shown separately because regenerating this page does not refresh the underlying data.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.