Formula Systems (FSY) AI Stock Analysis

Formula Systems

(Frankfurt:FSY)

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Positive Factors

Accelerating GrowthThe strong first-half 2026 expansion demonstrates improving demand across the subsidiary portfolio and provides evidence of renewed operating momentum. Higher revenue combined with faster operating-income growth can strengthen internal funding capacity and support Formula Systems’ competitive position over the next several quarters.

Negative Factors

Revenue and Margin PressureThe 2025 deterioration in revenue and both gross and operating margins signals weaker underlying operating performance despite the company’s broader historical growth. If the pressure persists, it could reduce subsidiary profitability, weaken operating leverage, and make future earnings growth more dependent on recovery rather than steady organic expansion.

Formula Systems (FSY) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.87B
Dividend Yield: 12.13%
Average Volume (3M): 78
Price to Earnings (P/E): 2.8
Beta (1Y): 0.15
Revenue Growth: -5.63%
EPS Growth: 653.27%
Country: Germany
Employees: 19,337
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Formula Systems Business Overview & Revenue Model

Company Description

Formula Systems (1985) Ltd. is a global provider of diverse IT solutions and services, operating through its various subsidiaries. The company specializes in delivering both its own proprietary software and third-party solutions, alongside comprehens...

Formula Systems Risk Analysis

Formula Systems disclosed 52 risk factors in its most recent earnings report. Formula Systems reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.We may encounter difficulties in realizing the potential financial or strategic benefits of recent business acquisitions. We expect to make additional acquisitions in the future that could disrupt our operations and harm our operating results.Q4, 2023

2.Our business depends on generating and maintaining ongoing, profitable client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.Q4, 2023

3.Political and economic conditions in Israel, including the ongoing war and hostilities between Israel and Hamas Terror Organization and Israel and the Hezbollah Terror Organization in Lebanon, may limit our ability to sell our products. This could have a material adverse effect on our operations and business condition, harm our results of operations and adversely affect our share price.Q4, 2023

Formula Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:FSY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	84Outperform	$152.63B	18.90	26.77%	2.56%	6.47%	11.19%
CTSH	77Outperform	$29.11B	11.86	17.36%	2.00%	4.96%	27.16%
EPAM	72Outperform	$7.25B	18.96	11.19%	―	10.76%	4.93%
WIT	70Outperform	$20.64B	15.55	15.94%	4.02%	0.38%	-8.33%
DXC	60Neutral	$2.39B	21.10	3.67%	―	-2.81%	-67.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

DE:FSY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:FSY	Formula Systems	106.00	-0.41	-0.38%
ACN	Accenture Plc	258.24	18.16	7.56%
CTSH	Cognizant Technology Solutions	65.11	-6.02	-8.46%
EPAM	Epam Systems	140.51	-21.20	-13.11%
WIT	Wipro Limited	2.16	-0.37	-14.49%
DXC	Dxc Technology Company	14.98	1.71	12.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Formula Systems AI Stock Analysis