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On August 13, 2025 Sapiens International, a Formula Systems subsidiary, agreed to be acquired by Advent for $43.50 per share, valuing Sapiens at roughly $2.5 billion; Formula will sell approximately 72% of its interest while retaining a minority stake and expects a capital gain upon closing. Sapiens completed prior bolt-on acquisitions in Q2 including AdvantageGo and Candella, and the transaction anticipates closing in Q4 2025 or Q1 2026.
Technical Analysis
ADX sits at 11.33, indicating no strong trend; price behavior therefore depends more on momentum crossovers than an established directional move. That low ADX tempers the strength implied by oscillators and suggests consolidation risk despite bullish signals.
Directional indicators show bullish internals: DI+ at 45.64 with a dip-and-reversal signals bullish directional pressure, while DI- at 40.94 has peak-and-reversed into a decline, which also signals bullish directional relief. Combined with a low ADX, the market currently shows bullish attempts without a confirmed strong trend.
MACD reads 1.76 with the MACD above its signal line at 1.56 and a dip-and-reversal trend, which constitutes a bullish momentum confirmation. That bullish MACD bias supports upward pressure on price near current levels.
MRO stands at 23.13 and has peak-and-reversed; the positive MRO indicates price sits above the internal target and therefore carries mean-reversion pressure. That measure conflicts with MACD’s bullish momentum and implies upside may meet profit-taking or pullback risk until momentum broadens.
RSI at 56.98 with a dip-and-reversal trend shows mildly bullish momentum without overbought readings, compatible with further upside but prone to range-bound moves if volume fails to expand.
Price sits above short- and long-term averages: close $148.00 versus the 20-day average $143.82 and the 200-day average $113.48, signaling relative strength across horizons. The 12-day EMA trend shows a dip-and-reversal and the super-trend support sits at $143.31; those levels form a near-term support band beneath current price.
Bollinger bands place current price at the upper envelope (upper 1x at $147.82), indicating short-term extension; coupled with light absolute volume (today’s volume 580 versus 10-day average 171 and 200-day average 562), momentum lacks broad conviction but remains constructive while above the super-trend support.
Fundamental Analysis
Revenue totaled $743,369,000 for the period ending 2025-06-30; reported operating income (EBIT) equals $67,889,000, producing an operating/EBIT margin of 9.13%, down 2.30% quarter-over-quarter and down 6.24% year-over-year. The operating margin sits below the industry peer mean of 32.15% and below the industry peer median of 19.82%, yet above the industry peer low of -140.48% in the provided range.
Top-line growth metrics show contraction in the provided figures: revenue growth registers -1.50% overall and revenue growth year-over-year at -65.92%. Those YoY figures contrast with recent corporate reporting but must be addressed in the context of the company’s portfolio and announced divestiture.
Profitability and returns remain modest: net income $15,053,000 and return on equity 2.08% (ROE declined ~28.82% YoY), while return on invested capital stands at 4.16%. Interest coverage approximates 6.64x, providing a buffer on current interest obligations despite rising leverage metrics.
Balance sheet and liquidity present mixed signals: cash and short-term investments total $406,165,000 while net debt equals $108,485,000, yielding a positive net cash position. Current ratio measures 1.21 and quick ratio 1.17, slightly below the industry peer mean current ratio of 1.28366 but above the industry peer low. Cash conversion cycle measures ~65.8 days, which sits above the industry peer median but within the industry peer range, indicating working-capital intensity in receivables (days sales outstanding ~105 days) that offsets a lean inventory profile (days inventory ~6 days).
Leverage reads materially higher on some dynamics: debt-to-assets at 21.39% increased sharply year-over-year (reported +169.33% YoY change). Debt-to-EBITDA stands near 10.07x, signaling a levered position relative to current operating earnings; interest coverage remains positive but has weakened quarter-over-quarter.
Market multiples show price-to-book at 2.53x and price-to-sales at 2.46x, both well below the industry peer mean and median levels provided, while enterprise multiple registers ~31.05x. WMDST values the stock as under-valued; the pending partial sale of Sapiens and the expected capital gain (management estimates) materially improves prospective cash and equity composition upon closing and underpins that valuation stance.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-09-15 |
| NEXT REPORT DATE: | 2025-12-15 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | $ -53.55 M | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -15.05 M | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 743.4 M | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 557.9 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 23.8 M | |
| Total Operating Expenses | $ 675.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 185.5 M | |
| EBITDA | $ 67.9 M | |
| EBIT | $ 67.9 M | |
| Operating Income | $ 67.9 M | |
| Interest Income | — | |
| Interest Expense | $ 10.2 M | |
| Net Interest Income | $ -10.23 M | |
| Income Before Tax | $ 57.7 M | |
| Tax Provision | $ 14.4 M | |
| Tax Rate | 25.021 % | |
| Net Income | $ 15.1 M | |
| Net Income From Continuing Operations | $ 15.1 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | — | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.2 B | |
| Intangible Assets | $ 1.4 B | |
| Net Tangible Assets | $ -659.90 M | |
| Total Current Assets | $ 1.4 B | |
| Cash and Short-Term Investments | $ 406.2 M | |
| Cash | $ 393.2 M | |
| Net Receivables | $ 883.2 M | |
| Inventory | $ 48.1 M | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 287.7 M | |
| Short-Term Debt | $ 251.8 M | |
| Total Current Liabilities | $ 1.2 B | |
| Net Debt | $ 108.5 M | |
| Total Debt | $ 683.9 M | |
| Total Liabilities | $ 1.7 B | |
| EQUITY | ||
| Total Equity | $ 722.9 M | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 47.15 | |
| Shares Outstanding | 15.333 M | |
| Revenue Per-Share | $ 48.48 | |
| VALUATION | Market Capitalization | $ 1.8 B |
| Enterprise Value | $ 2.1 B | |
| Enterprise Multiple | 31.052 | |
| Enterprise Multiple QoQ | 13.468 % | |
| Enterprise Multiple YoY | 122.691 % | |
| Enterprise Multiple IPRWA | high: 346.433 mean: 104.275 median: 102.408 FORTY: 31.052 low: -175.864 |
|
| EV/R | 2.836 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.422 | |
| Asset To Liability | 1.843 | |
| Debt To Capital | 0.486 | |
| Debt To Assets | 0.214 | |
| Debt To Assets QoQ | 3.92 % | |
| Debt To Assets YoY | 169.331 % | |
| Debt To Assets IPRWA | high: 1.413 median: 0.361 mean: 0.31 FORTY: 0.214 low: 0.006 |
|
| Debt To Equity | 0.946 | |
| Debt To Equity QoQ | 2.759 % | |
| Debt To Equity YoY | 183.8 % | |
| Debt To Equity IPRWA | high: 3.312 median: 1.943 mean: 1.484 FORTY: 0.946 low: -1.636 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.532 | |
| Price To Book QoQ | -5.796 % | |
| Price To Book YoY | 39.955 % | |
| Price To Book IPRWA | high: 18.53 mean: 9.419 median: 8.649 FORTY: 2.532 low: -6.216 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 2.462 | |
| Price To Sales QoQ | 1.522 % | |
| Price To Sales YoY | 41.104 % | |
| Price To Sales IPRWA | high: 62.342 mean: 17.155 median: 14.015 FORTY: 2.462 low: 0.281 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | — | |
| Forward PE/G | — | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.511 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.238 | |
| Asset Turnover Ratio QoQ | -4.365 % | |
| Asset Turnover Ratio YoY | -1.708 % | |
| Asset Turnover Ratio IPRWA | high: 0.512 FORTY: 0.238 mean: 0.151 median: 0.148 low: -0.019 |
|
| Receivables Turnover | 0.867 | |
| Receivables Turnover Ratio QoQ | -6.094 % | |
| Receivables Turnover Ratio YoY | -6.12 % | |
| Receivables Turnover Ratio IPRWA | high: 11.186 mean: 2.168 median: 1.875 FORTY: 0.867 low: -3.771 |
|
| Inventory Turnover | 14.706 | |
| Inventory Turnover Ratio QoQ | -25.059 % | |
| Inventory Turnover Ratio YoY | -5.011 % | |
| Inventory Turnover Ratio IPRWA | high: 40.664 FORTY: 14.706 mean: 5.134 median: 4.398 low: 0.378 |
|
| Days Sales Outstanding (DSO) | 105.218 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 65.812 | |
| Cash Conversion Cycle Days QoQ | 26.133 % | |
| Cash Conversion Cycle Days YoY | -3.632 % | |
| Cash Conversion Cycle Days IPRWA | high: 285.691 FORTY: 65.812 mean: 3.687 median: -2.385 low: -88.603 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.929 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 972.8 M | |
| Net Invested Capital | $ 1.2 B | |
| Invested Capital | $ 1.2 B | |
| Net Tangible Assets | $ -659.90 M | |
| Net Working Capital | $ 253.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.34 | |
| Current Ratio | 1.213 | |
| Current Ratio QoQ | -3.471 % | |
| Current Ratio YoY | -13.328 % | |
| Current Ratio IPRWA | high: 8.192 mean: 1.284 FORTY: 1.213 median: 1.163 low: 0.102 |
|
| Quick Ratio | 1.172 | |
| Quick Ratio QoQ | -4.899 % | |
| Quick Ratio YoY | -14.222 % | |
| Quick Ratio IPRWA | high: 5.956 FORTY: 1.172 mean: 0.932 median: 0.875 low: 0.091 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.073 | |
| Cost Of Debt | 1.17 % | |
| Interest Coverage Ratio | 6.639 | |
| Interest Coverage Ratio QoQ | -47.882 % | |
| Interest Coverage Ratio YoY | -60.915 % | |
| Interest Coverage Ratio IPRWA | high: 93.455 mean: 28.906 median: 24.959 FORTY: 6.639 low: -85.699 |
|
| Operating Cash Flow Ratio | -0.045 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 45.437 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.964 % | |
| Revenue Growth | -1.499 % | |
| Revenue Growth QoQ | -116.406 % | |
| Revenue Growth YoY | -65.924 % | |
| Revenue Growth IPRWA | high: 48.984 % median: 11.911 % mean: 10.466 % FORTY: -1.499 % low: -36.33 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 24.953 % | |
| Gross Margin QoQ | 4.21 % | |
| Gross Margin YoY | 0.096 % | |
| Gross Margin IPRWA | high: 91.59 % median: 75.664 % mean: 63.979 % FORTY: 24.953 % low: -33.394 % |
|
| EBIT Margin | 9.133 % | |
| EBIT Margin QoQ | -2.3 % | |
| EBIT Margin YoY | -6.242 % | |
| EBIT Margin IPRWA | high: 78.825 % mean: 32.15 % median: 19.824 % FORTY: 9.133 % low: -140.483 % |
|
| Return On Sales (ROS) | 9.133 % | |
| Return On Sales QoQ | -2.3 % | |
| Return On Sales YoY | -6.242 % | |
| Return On Sales IPRWA | high: 72.429 % mean: 30.767 % median: 18.71 % FORTY: 9.133 % low: -141.554 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | — | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | — | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | — | |
| Cash Flow Margin | -7.204 % | |
| Cash Flow To Earnings | -3.558 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.482 % | |
| Return On Assets QoQ | -24.333 % | |
| Return On Assets YoY | -29.532 % | |
| Return On Assets IPRWA | high: 14.526 % mean: 3.975 % median: 1.79 % FORTY: 0.482 % low: -14.505 % |
|
| Return On Capital Employed (ROCE) | 3.389 % | |
| Return On Equity (ROE) | 0.021 | |
| Return On Equity QoQ | -26.587 % | |
| Return On Equity YoY | -28.821 % | |
| Return On Equity IPRWA | high: 0.169 median: 0.044 mean: 0.038 FORTY: 0.021 low: -0.381 |
|
| DuPont ROE | 2.144 % | |
| Return On Invested Capital (ROIC) | 4.157 % | |
| Return On Invested Capital QoQ | -11.44 % | |
| Return On Invested Capital YoY | -121.24 % | |
| Return On Invested Capital IPRWA | high: 14.374 % mean: 7.239 % median: 4.251 % FORTY: 4.157 % low: -16.5 % |
|