Formula Systems stock soars to 52-week high of $110.95

Published 05/06/2025, 21:02
Formula Systems stock soars to 52-week high of $110.95

In a remarkable display of market confidence, Formula Systems (1985) Ltd (NASDAQ:FORTY) stock has reached a 52-week high, touching $110.95 in recent trading sessions. According to InvestingPro analysis, the company appears undervalued despite its recent gains, with a ’GREAT’ overall financial health score of 3.07 out of 4. This peak represents a significant milestone for the IT solutions and services provider, underscoring a period of robust performance and investor optimism. The company’s financial metrics support this momentum, with a healthy 24.92% gross profit margin and an impressive 18% free cash flow yield. Over the past year, Formula Systems has witnessed a 56.18% stock price increase, maintaining dividend payments for 13 consecutive years while operating with moderate debt levels. InvestingPro subscribers have access to 8 more key insights about Formula Systems’ growth potential. Investors are closely monitoring the stock as it continues to chart new territories, with the latest peak potentially setting the stage for future gains.

In other recent news, Formula Systems reported fourth-quarter earnings that exceeded expectations, with adjusted earnings per share reaching $1.28. The company’s revenue grew 8% year-over-year, totaling $691.5 million, surpassing analyst forecasts. Operating income also saw a significant increase of 19.1% compared to the same quarter last year, amounting to $71.9 million. The company attributed its strong performance to robust organic growth across its software and IT services businesses. Key subsidiaries such as Matrix IT, Magic Software (ETR:SOWGn), and TSG posted record results, with Matrix IT achieving its best fourth quarter ever and revenue rising by 4.1% to approximately $371.8 million. In addition, Magic Software has introduced revenue guidance for 2025, projecting growth between 7.3% and 9.1%. Formula Systems also declared a dividend of approximately $0.94 per share, payable on May 14, 2025. These developments have contributed to increased investor interest in the company.

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