The big problem is that you're trying to use "is" (the "being" verb) to attribute something with a verb instead of an adjective. You can use "does," as in @TzD's example, to make that connection appropriately, or you can change "satisfy" to an adjective:
'This algebraic expression above is not satisfactory for the following formula.'
"This algebraic expression above" is also close, but still incorrect. You can say "the above algebraic expression" or "the algebraic expression above." You could also just say "this algebraic expression" without "above" if you are confident the reader will know which expression you are talking about.