Formula Systems Revenue vs. EBITDA
| FORTY Stock | USD 80.20 2.53 3.06% |
Total Revenue | First Reported 1998-03-31 | Previous Quarter 698.4 M | Current Value 667.7 M | Quarterly Volatility 188.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.31 | 0.2456 |
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| Net Profit Margin | 0.0326 | 0.0244 |
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| Operating Profit Margin | 0.0959 | 0.0913 |
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| Pretax Profit Margin | 0.0482 | 0.0808 |
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| Return On Assets | 0.0258 | 0.0228 |
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| Return On Equity | 0.088 | 0.1023 |
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For Formula Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Formula Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Formula Systems 1985 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Formula Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Formula Systems 1985 over time as well as its relative position and ranking within its peers.
Formula |
Is IT Consulting & Other Services space 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 0.081 | Dividend Share 1.271 | Earnings Share 4.32 | Revenue Per Share 173.906 | Quarterly Revenue Growth 0.019 |
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.
Formula Systems 1985 EBITDA vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Formula Systems's current stock value. Our valuation model uses many indicators to compare Formula Systems value to that of its competitors to determine the firm's financial worth. Formula Systems 1985 is rated below average in revenue category among its peers. It also is rated below average in ebitda category among its peers totaling about 0.14 of EBITDA per Revenue. The ratio of Revenue to EBITDA for Formula Systems 1985 is roughly 7.06 . At this time, Formula Systems' Total Revenue is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Formula Systems' earnings, one of the primary drivers of an investment's value.Formula Revenue vs. Competition
Formula Systems 1985 is rated below average in revenue category among its peers. Market size based on revenue of Information Technology industry is currently estimated at about 196.68 Billion. Formula Systems claims roughly 2.62 Billion in revenue contributing just under 2% to equities under Information Technology industry.
Formula EBITDA vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Formula Systems |
| = | 2.62 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Formula Systems |
| = | 371.23 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Formula EBITDA Comparison
Formula Systems is currently under evaluation in ebitda category among its peers.
Formula Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Formula Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Formula Systems will eventually generate negative long term returns. The profitability progress is the general direction of Formula Systems' change in net profit over the period of time. It can combine multiple indicators of Formula Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -11 M | -10.5 M | |
| Operating Income | 239.4 M | 251.3 M | |
| Income Before Tax | 211 M | 221.6 M | |
| Total Other Income Expense Net | -28.3 M | -26.9 M | |
| Net Income | 165.7 M | 174 M | |
| Income Tax Expense | 46.1 M | 48.4 M | |
| Net Income Applicable To Common Shares | 93.6 M | 98.3 M | |
| Net Income From Continuing Ops | 165.1 M | 112.6 M | |
| Interest Income | 13.8 M | 7.5 M | |
| Net Interest Income | -26.3 M | -27.6 M | |
| Change To Netincome | 115.9 M | 121.7 M | |
| Net Income Per Share | 4.12 | 2.34 | |
| Income Quality | 1.78 | 2.87 | |
| Net Income Per E B T | 0.30 | 0.29 |
Formula Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Formula Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Formula Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Formula Systems' important profitability drivers and their relationship over time.
Use Formula Systems in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Formula Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Formula Systems will appreciate offsetting losses from the drop in the long position's value.Formula Systems Pair Trading
Formula Systems 1985 Pair Trading Analysis
The ability to find closely correlated positions to Formula Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Formula Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Formula Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Formula Systems 1985 to buy it.
The correlation of Formula Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Formula Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Formula Systems 1985 moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Formula Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Formula Systems position
In addition to having Formula Systems in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Formula Stock Analysis
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.