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Alfa Financial Software plc (GB:ALFA)
LSE:ALFA

Alfa Financial Software plc (ALFA) AI Stock Analysis

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GB

Alfa Financial Software plc

(LSE:ALFA)

Rating:67Neutral
Price Target:
241.00p
▲(9.55%Upside)
Alfa Financial Software plc's overall stock score reflects strong financial performance and positive corporate events, which are offset by bearish technical indicators and a high valuation. The company's robust financial health and supportive corporate actions are key strengths, while technical signals suggest caution in the short term.

Alfa Financial Software plc (ALFA) vs. iShares MSCI United Kingdom ETF (EWC)

Alfa Financial Software plc Business Overview & Revenue Model

Company DescriptionAlfa Financial Software Holdings PLC, through its subsidiaries, provides software solutions and consultancy services to the asset finance industry in the United Kingdom, the United States, rest of Europe, and internationally. The company operates through Services, Software, and Subscription segments. It provides Alfa Systems, a software platform to administer retail and corporate businesses from point of sale through originations to contract management and remarketing; and Alfa Digital platform and apps suite, an omnichannel digital solution that delivers concepts, such as self-serve, customer onboarding, and mobility, as well as point of sale functionality across various devices. The company also offers cloud hosting services. It primarily serves equipment and automotive finance markets. The company was founded in 1990 and is based in London, the United Kingdom. Alfa Financial Software Holdings PLC is a subsidiary of CHP Software and Consulting Limited.
How the Company Makes MoneyAlfa Financial Software plc generates revenue primarily through the sale and implementation of its proprietary software platform, Alfa Systems. The company earns money by licensing its software to clients, which include financial institutions and asset finance companies, and by providing implementation and customization services to tailor the software to specific client needs. Additionally, Alfa offers ongoing support and maintenance services, which provide a recurring revenue stream. The company may also engage in partnerships with other technology providers to enhance its offerings and broaden its market reach. Key revenue streams include software licensing fees, professional services for implementation, and maintenance and support contracts.

Alfa Financial Software plc Financial Statement Overview

Summary
Alfa Financial Software plc exhibits strong financial performance with consistent revenue and profit growth, robust margins, and prudent balance sheet management. The company generates healthy cash flows, supporting financial health and sustainable growth. Its low leverage further enhances financial stability.
Income Statement
85
Very Positive
Alfa Financial Software plc has demonstrated strong revenue growth with a consistent upward trend in total revenue over the past five years. The gross profit margin has remained robust, consistently above 60%, indicating effective cost management. The net profit margin and EBIT margin have also shown positive growth, reflecting improved operational efficiency and profitability.
Balance Sheet
78
Positive
The company maintains a strong balance sheet with a solid equity base. The debt-to-equity ratio is low, suggesting conservative leverage and financial stability. The equity ratio indicates a strong equity position relative to total assets. These factors contribute to a favorable financial standing, with potential risks mitigated by low leverage.
Cash Flow
82
Very Positive
Alfa Financial Software plc exhibits healthy cash flow generation, with a strong operating cash flow consistently exceeding net income. Free cash flow has shown resilience and growth, supporting the company's capacity for reinvestment and shareholder returns. The cash flow stability strengthens the company's financial flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue109.90M102.00M93.30M83.20M78.87M
Gross Profit70.90M63.70M56.90M51.10M60.47M
EBITDA37.50M32.90M30.80M27.50M27.15M
Net Income25.60M23.50M24.50M19.20M20.30M
Balance Sheet
Total Assets84.70M75.10M76.50M84.00M95.49M
Cash, Cash Equivalents and Short-Term Investments20.50M21.80M18.70M23.10M37.02M
Total Debt9.30M8.20M9.30M17.10M17.49M
Total Liabilities38.50M33.10M34.50M40.60M35.26M
Stockholders Equity46.20M42.00M42.00M43.40M60.23M
Cash Flow
Free Cash Flow22.80M28.80M24.90M25.40M24.64M
Operating Cash Flow28.40M32.20M27.20M26.70M25.65M
Investing Cash Flow-5.40M-3.10M-2.30M-1.30M-1.41M
Financing Cash Flow-24.10M-25.80M-29.70M-39.20M-45.94M

Alfa Financial Software plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price220.00
Price Trends
50DMA
232.50
Negative
100DMA
225.92
Negative
200DMA
218.53
Positive
Market Momentum
MACD
-3.46
Positive
RSI
38.56
Neutral
STOCH
27.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALFA, the sentiment is Negative. The current price of 220 is below the 20-day moving average (MA) of 223.63, below the 50-day MA of 232.50, and above the 200-day MA of 218.53, indicating a neutral trend. The MACD of -3.46 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 27.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ALFA.

Alfa Financial Software plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCER
76
Outperform
£445.39M31.3330.29%0.64%2.33%1.11%
73
Outperform
£300.95M48.188.06%1.06%10.93%12.30%
69
Neutral
¥229.01B14.097.50%2.69%9.25%8.21%
67
Neutral
£647.82M25.1758.00%2.18%7.75%8.77%
65
Neutral
£170.65M35.168.42%0.85%-6.21%21.39%
65
Neutral
£69.55M13.7816.09%1.08%26.05%7.09%
GBNCC
59
Neutral
£451.63M-10.60%2.09%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ALFA
Alfa Financial Software plc
220.00
43.14
24.39%
GB:CER
Cerillion
1,510.00
-200.53
-11.72%
GB:CLBS
Celebrus Technologies
175.00
-76.96
-30.54%
GB:IDOX
Idox plc
66.00
4.75
7.76%
GB:APTD
Aptitude Software Group plc
308.00
-67.44
-17.96%
GB:NCC
NCC Group plc
143.40
-1.25
-0.86%

Alfa Financial Software plc Corporate Events

Regulatory Filings and Compliance
Alfa Financial Software Updates Total Voting Rights
Neutral
Jun 30, 2025

Alfa Financial Software Holdings PLC announced that as of June 30, 2025, its total voting rights stand at 296,569,424, following the exclusion of shares held in Treasury. This update is in compliance with the FCA’s Disclosure and Transparency Rule and informs shareholders of the denominator for calculating their interests in the company.

The most recent analyst rating on (GB:ALFA) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on Alfa Financial Software plc stock, see the GB:ALFA Stock Forecast page.

Regulatory Filings and Compliance
Alfa Financial Software Announces Total Voting Rights Update
Neutral
May 30, 2025

Alfa Financial Software Holdings PLC announced that as of 30 May 2025, the company’s issued ordinary share capital consists of 300,000,000 ordinary shares, with 3,639,655 shares held in Treasury, resulting in a total of 296,360,345 voting rights. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:ALFA) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on Alfa Financial Software plc stock, see the GB:ALFA Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Alfa Financial Software Grants Options to Key Executives
Neutral
May 8, 2025

Alfa Financial Software Holdings PLC announced the grant of 11,302 options each to Duncan Magrath, Chief Financial Officer, and Matthew White, Chief Operating Officer, under the 2025 Sharesave Plan. The options, priced at 162.8 pence per share, can be exercised between June 2028 and December 2028. This move aligns with the company’s strategic initiatives to incentivize its leadership team, potentially impacting its operational dynamics and stakeholder interests.

Executive/Board ChangesShareholder MeetingsDividendsFinancial Disclosures
Alfa Financial Software Announces Successful AGM Resolutions
Positive
Apr 30, 2025

Alfa Financial Software Holdings PLC announced the successful passing of all resolutions at its 2025 Annual General Meeting, including the election and re-election of directors and the approval of financial statements and dividends. The resolutions were passed by a majority vote from both independent and all shareholders, indicating strong support for the company’s leadership and strategic direction. This outcome reinforces Alfa’s stable governance and positions it favorably within the asset and automotive finance industry, potentially enhancing stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
Alfa Financial Software Reports Strong Q1 2025 Performance and Record TCV
Positive
Apr 29, 2025

Alfa Financial Software Holdings PLC reported a strong trading performance in Q1 2025, with revenue increasing by 20% to £31 million compared to the same quarter last year. The company achieved record Total Contract Value (TCV) of £227 million, driven by significant growth in subscription and software engineering revenues. The successful release of Alfa Systems 6 has generated strong interest, with new modules being sold to existing customers, and the company continues to invest in product enhancements. Alfa’s robust pipeline development, with a strong late-stage pipeline and continued recruitment plans, positions it well to meet its full-year expectations despite macroeconomic uncertainties.

Executive/Board ChangesBusiness Operations and Strategy
Alfa Financial Software Grants Long-Term Incentive Awards to Executives
Neutral
Apr 15, 2025

Alfa Financial Software Holdings PLC announced the granting of awards under its 2017 Long Term Incentive Plan (LTIP) and Deferred Bonus Share Plan (DBSP) to key executives. Chief Financial Officer Duncan Magrath and Chief Operating Officer Matthew White received conditional share awards and net bonus shares, respectively, with vesting dates set for 2028. These awards align with the company’s remuneration policy and are designed to incentivize performance and retain top management, potentially impacting the company’s long-term strategic goals and stakeholder interests.

Executive/Board ChangesRegulatory Filings and Compliance
Alfa Financial Software Announces LTIP Vesting and Share Transfers
Neutral
Apr 15, 2025

Alfa Financial Software Holdings PLC announced the vesting of awards under its 2017 Long Term Incentive Plan, with 87% of the maximum awards granted on 12 April 2022 vesting on 14 April 2025. The shares were net settled to cover tax liabilities, and the remaining shares were retained by the recipients. Additionally, Chief Financial Officer Duncan Magrath and Chief Operating Officer Matthew White transferred shares to their spouses for nil consideration, as approved by the Remuneration Committee. This announcement highlights the company’s commitment to rewarding its executives and aligns with regulatory requirements under the UK Market Abuse Regulation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 21, 2025