FORTY
Formula Systems (1985) Ltd.
FORTY offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
MSFT
Microsoft Corporation
MSFT has the edge over FORTY overall, supported by stronger fundamentals and lower modeled downside.
FORTY Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Stable | |
| Strong |
FORTY's revenue, profitability and balance sheet are currently healthy, and its cash flow is stable.
MSFT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Strong |
MSFT's revenue, profitability, cash flow and balance sheet are all currently healthy.
FORTY PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 3.1x | $121 | — |
| Cheap | 14x | $537 | +344% |
| Fair | 19x | $755 | +524% |
| Expensive | 30x | $1,202 | +893% |
Historical ranges are pointers, not guarantees.
FORTY has the edge over MSFT in the historical PE scenario, which offers more potential upside but is not a forecast.
MSFT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 25x | $523 | — |
| Cheap | 27x | $525 | +0.4% |
| Current | 27x | $523 | — |
| Fair | 34x | $652 | +25% |
| Expensive | 37x | $711 | +36% |
Historical ranges are pointers, not guarantees.
MSFT's PE is in its cheap range at 27x. If earnings grow as analysts expect, today's price would be 25x next year's earnings.
FORTY Forward outlook
There aren't enough analyst estimates for FORTY to show an outlook.
MSFT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Strong growth | |
| Stable | |
| Moderate | |
| High |
Analysts expect strong earnings and revenue growth for MSFT, with profitability holding steady.
FORTY Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $39.70 | +699% |
| Q1 2026 | $39.18 | +651% |
| Q4 2025 | $38.16 | +650% |
| Q3 2025 | $4.19 | -13% |
| Q2 2025 | $4.97 | +15% |
| Q1 2025 | $5.22 | +24% |
| Q4 2024 | $5.09 | +23% |
| Q3 2024 | $4.82 | +17% |
FORTY's earnings per share have jumped to their highest in seven years: $39.70 over the past year, up from $4.97 the year before.
MSFT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $20.79 | +8.6% |
| Q3 2026 | $19.15 | +36% |
| Q2 2026 | $17.95 | +32% |
| Q1 2026 | $16.80 | +30% |
| Q4 2025 | $15.99 | +29% |
| Q3 2025 | $14.06 | +16% |
| Q2 2025 | $13.64 | +16% |
| Q1 2025 | $12.93 | +12% |
| Q4 2024 | $12.41 | +12% |
MSFT's earnings per share have climbed steadily: $19.15 over the past year, up 36% from the year before, and higher year over year for 14 quarters in a row.
FORTY Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $782.4M | +3% |
| Q1 2026 | $738.3M | +20% |
| Q4 2025 | $712.8M | +28% |
| Q3 2025 | $699.9M | 0% |
| Q2 2025 | $759.3M | +14% |
| Q1 2025 | $616.2M | -12% |
| Q4 2024 | $558.2M | -13% |
| Q3 2024 | $699.9M | +6.9% |
FORTY's revenue has picked up after three years of holding roughly level: $782M last quarter, up 3% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 9.2% | 0 points |
| Q1 2026 | 11% | +3.1 points |
| Q4 2025 | 4.6% | -4 points |
| Q3 2025 | 7.8% | -2.3 points |
| Q2 2025 | 9.1% | -0.6 points |
| Q1 2025 | 8% | -1 points |
| Q4 2024 | 8.6% | -0.8 points |
| Q3 2024 | 10% | +1.3 points |
FORTY's operating margin was 9.2% last quarter, about level with the same quarter a year ago.
MSFT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $92.3B | +19% |
| Q2 2026 | $90B | +18% |
| Q1 2026 | $82.9B | +18% |
| Q4 2025 | $81.3B | +17% |
| Q3 2025 | $77.7B | +18% |
| Q2 2025 | $76.4B | +18% |
| Q1 2025 | $70.1B | +13% |
| Q4 2024 | $69.6B | +12% |
MSFT has the edge over FORTY on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 50% | +0.9 points |
| Q2 2026 | 45% | +0.2 points |
| Q1 2026 | 46% | +0.7 points |
| Q4 2025 | 47% | +1.6 points |
| Q3 2025 | 49% | +2.3 points |
| Q2 2025 | 45% | +1.8 points |
| Q1 2025 | 46% | +1.1 points |
| Q4 2024 | 45% | +1.9 points |
MSFT has the edge over FORTY on profitability, with a higher operating margin.
FORTY Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $0 | $0 |
| Q1 2026 | $0 | $0 |
| Q4 2025 | $0 | $0 |
| Q3 2025 | $0 | $0 |
| Q2 2025 | $0 | $0 |
| Q1 2025 | $0 | $0 |
| Q4 2024 | $0 | $0 |
| Q3 2024 | $0 | $0 |
FORTY's free cash flow has been positive every quarter for seven years: $0 over the past year, against $0 the year before.
MSFT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $18.6B | -27% |
| Q2 2026 | $19.6B | -23% |
| Q1 2026 | $15.8B | -22% |
| Q4 2025 | $5.9B | -9.3% |
| Q3 2025 | $25.7B | +33% |
| Q2 2025 | $25.6B | +9.6% |
| Q1 2025 | $20.3B | -3.2% |
| Q4 2024 | $6.5B | -29% |
MSFT has the edge over FORTY on cash flow, with more consistent year-over-year improvement.
FORTY Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | +2.9K shares |
| 1 year | +0.5% | +81.1K shares |
| 3 years | +2.3% | +358K shares |
| 5 years | +3.1% | +476K shares |
| Available history | +3.6% | +549K shares |
FORTY has 16M diluted shares, up 0.5% from a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
| Q3 2024 | — |
FORTY hasn't bought back shares in the past year.
MSFT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.1% | -7M shares |
| 1 year | -0.3% | -20M shares |
| 3 years | -0.2% | -16M shares |
| 5 years | -1.6% | -121M shares |
| Available history | -3.2% | -245M shares |
MSFT has the edge over FORTY on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $4.4B |
| Q2 2026 | $4.6B |
| Q1 2026 | $4.6B |
| Q4 2025 | $7.4B |
| Q3 2025 | $5.7B |
| Q2 2025 | $4.5B |
| Q1 2025 | $4.8B |
| Q4 2024 | $5B |
MSFT spent $21B buying back its own shares over the past year, up 5.2% from the year before.
FORTY Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | -0.7x | Net Cash |
| Q1 2026 | -1.8x | Net Cash |
| Q4 2025 | -3.1x | Net Cash |
| Q3 2025 | 0.9x | Very low |
| Q2 2025 | 1.2x | Healthy |
| Q1 2025 | 0.7x | Very low |
| Q4 2024 | 0.7x | Very low |
| Q3 2024 | 0.7x | Very low |
FORTY has the edge over MSFT on leverage, with a lower net debt burden relative to earnings.
MSFT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.1x | Very low |
| Q2 2026 | 0.1x | Very low |
MSFT's net debt is less than a year of its operating earnings (EBITDA).
FORTY Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 50.7 | Neutral |
| Stochastic | 52.6 | Neutral |
FORTY's weekly RSI is 51 (neutral) and its Stochastic is 53 (neutral).
MSFT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 62.1 | Neutral |
| Stochastic | 68.0 | Neutral |
MSFT's weekly RSI is 62 (neutral) and its Stochastic is 68 (neutral).
FORTY PE vs Technology Sector
| Metric | FORTY | Sector median | Relative |
|---|---|---|---|
| PE | 3.1x | 28x | 89% below |
| PE % | 6 | 35 | 29 pts below |
FORTY has the edge over MSFT on valuation relative to its sector.
MSFT PE vs Technology Sector
| Metric | MSFT | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 28x | 2% below |
| PE % | 16 | 35 | 19 pts below |
MSFT is trading at 27x earnings, in line with the Technology sector's median of 28x.
FORTY Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $116.4 | 3.9% above |
| 20 week MA | $115.5 | 4.8% above |
| 50 week MA | $130.7 | 7.4% below |
| 100 week MA | $122.0 | 0.8% below |
| 200 week MA | $97.6 | 24% above |
FORTY's trend is mixed: it's above three of its five weekly moving averages, and 24% above its 200-week average.
MSFT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $524.7 | 0.3% below |
| 20 week MA | $484.8 | 7.9% above |
| 50 week MA | $446.9 | 17% above |
| 100 week MA | $453.8 | 15% above |
| 200 week MA | $411.5 | 27% above |
MSFT has the edge over FORTY on trend strength, trading above more of its moving averages.
FORTY Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $68.2 | $81.8 | +20% |
| 2021 | $81.8 | $119.9 | +47% |
| 2022 | $119.9 | $75.0 | -37% |
| 2023 | $75.0 | $65.3 | -13% |
| 2024 | $65.3 | $93.4 | +43% |
| 2025 | $93.4 | $190.6 | +104% |
| 2026 YTD | $190.6 | $121.0 | -37% |
FORTY is down 37% so far in 2026, after finishing higher in four of the previous six years.
MSFT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $159.0 | $222.8 | +40% |
| 2021 | $222.8 | $334.7 | +50% |
| 2022 | $334.7 | $238.7 | -29% |
| 2023 | $238.7 | $376.0 | +58% |
| 2024 | $376.0 | $430.5 | +14% |
| 2025 | $430.5 | $487.7 | +13% |
| 2026 YTD | $487.7 | $523.0 | +7.2% |
MSFT has the edge over FORTY on returns for 2026, with the stronger performance.