Dividend Power Score
A single, comprehensive score designed to measure the true strength of a company’s dividend.
This score combines three essential pillars of dividend quality:
Consistency – Measures how reliable the dividend has been over time, focusing on payment history, stability, and the absence of cuts or suspensions.
Payability – Assesses the company’s financial ability to sustain its dividend, taking into account cash flow, earnings coverage, balance sheet strength, and overall financial health.
Growth – Evaluates the long-term growth of both the dividend and the company’s share price, highlighting businesses that consistently increase payouts while creating shareholder value.
Higher scores identify companies that have historically delivered dependable income alongside sustained dividend growth and long-term capital appreciation.
Company Overview
Formula Systems (1985) Ltd. is an Israel-based holding company that operates primarily in the information technology (IT) services and software industries. The company functions as a strategic parent, deriving the majority of its revenue and value from controlling interests in publicly traded and private technology companies rather than from direct operating activities. Its core business model centers on owning, managing, and allocating capital among IT-focused subsidiaries that provide enterprise software solutions, IT consulting, digital transformation services, and specialized technology platforms.
The company’s principal revenue drivers are its holdings in Matrix IT Ltd. and Sapiens International Corporation N.V., which together represent the vast majority of consolidated revenues and operating income. Formula Systems is positioned as a long-term technology investor with deep expertise in enterprise software and IT services, particularly for large organizations and regulated industries. Founded in 1985, the company evolved from an operating software firm into a pure-play holding structure over several decades, progressively spinning off and listing its operating businesses while retaining controlling ownership stakes.
Business Operations
Formula Systems generates revenue almost entirely through its operating subsidiaries, which are consolidated into its financial statements. Matrix IT Ltd. operates as a broad-based IT services and integration provider, offering consulting, system integration, outsourcing, cloud services, and software development. Sapiens International Corporation N.V. focuses on enterprise software solutions for the insurance industry, providing policy administration, billing, and claims platforms primarily under long-term licensing and maintenance contracts.
Operations are conducted across both domestic and international markets through these subsidiaries, with services delivered via owned development centers, consulting teams, and proprietary software platforms. Formula Systems does not report significant independent operations outside of its subsidiaries, and it does not rely on material joint ventures for revenue generation. Its role is primarily strategic and financial, including governance, capital allocation, and long-term planning for its portfolio companies.
Strategic Position & Investments
The company’s strategic direction emphasizes strengthening its core holdings while selectively pursuing growth through acquisitions at the subsidiary level. Growth initiatives are typically executed by Matrix IT Ltd. and Sapiens International Corporation N.V., including bolt-on acquisitions, expansion into adjacent technology offerings, and investment in cloud-based and digital transformation solutions. Formula Systems itself focuses on maintaining controlling stakes and supporting sustainable, cash-generative growth.
Historically, Formula Systems has been involved in the incubation and development of technology businesses, some of which were later divested or listed independently. Current investments are concentrated in enterprise IT services and insurance software, with exposure to emerging areas such as data analytics, cloud migration, and automation through subsidiary product development. Public disclosures do not indicate material diversification outside the IT and software sectors.
Geographic Footprint
Formula Systems is headquartered in Israel, where it maintains its corporate offices and where Matrix IT Ltd. has a significant operational presence. Through its subsidiaries, the company has a substantial footprint across North America, Europe, and parts of the Asia-Pacific region. Sapiens International Corporation N.V. in particular has extensive operations in the United States, Western Europe, and Asia, serving global insurance clients.
The company’s international influence is driven by global enterprise customers, multinational delivery teams, and overseas subsidiaries and branches operated by its portfolio companies. While Israel remains the center of corporate control and governance, the majority of end customers and revenue are generated outside the domestic market.
Leadership & Governance
Formula Systems is led by an executive management team responsible for capital allocation, oversight of subsidiaries, and long-term strategic planning. Governance is structured around a board of directors and senior executives with long-standing involvement in the Israeli technology sector and the company’s portfolio businesses. Leadership philosophy emphasizes disciplined investment, operational independence for subsidiaries, and sustained shareholder value creation.
Key executives include:
- Guy Bernstein – Chief Executive Officer
- Asaf Shemer – Chief Financial Officer
- David Assia – Chairman of the Board
The leadership team maintains close oversight of subsidiary management while allowing operating companies to execute independently within their respective markets.