Alfa Financial Software plc (GB:ALFA)
LSE:ALFA
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Alfa Financial Software plc
(LSE:ALFA)
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Rating:75Outperform
Price Target:
162.00 p
▼(-22.49% Downside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by strong financial performance (profitability, low leverage, and excellent cash generation) and supportive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals, with the stock trading below key moving averages and negative momentum indicators despite oversold readings.
Positive Factors
Cash generation
Consistently positive operating and free cash flow, with a material step-up in 2025, supports reinvestment, shareholder returns and buffer against downturns. High cash conversion historically (OCF covering net income) provides durable financial flexibility for product development and selective M&A.
Negative Factors
Revenue growth deceleration
A meaningful slowdown in top-line growth reduces the runway for operating leverage and compresses potential margin expansion. For a software firm, sustained deceleration raises questions around competitive positioning, new customer wins and upsell capacity, making medium-term earnings growth less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently positive operating and free cash flow, with a material step-up in 2025, supports reinvestment, shareholder returns and buffer against downturns. High cash conversion historically (OCF covering net income) provides durable financial flexibility for product development and selective M&A.
Read all positive factors
Alfa Financial Software plc (ALFA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£429.36M
Dividend Yield3.58%
Average Volume (3M)314.57K
Price to Earnings (P/E)11.1
Beta (1Y)0.49
Revenue Growth18.44%
EPS Growth33.73%
CountryUK
Employees502
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.05
Shares Outstanding296,648,320
10 Day Avg. Volume395,293
30 Day Avg. Volume314,571
Financial Highlights & Ratios
PEG Ratio1.37
Price to Book (P/B)12.13
Price to Sales (P/S)4.95
P/FCF Ratio16.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£264.00Price Target Upside26.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)£134.76M
Alfa Financial Software plc Business Overview & Revenue Model
Company Description
Alfa 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 ...
How the Company Makes Money
Alfa Financial Software generates revenue primarily by licensing and/or subscribing customers to its asset finance software and by providing related professional services. Key revenue streams typically include: (1) recurring software revenues from...
Alfa Financial Software plc Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 126.70M | 109.90M | 102.00M | 93.30M | 83.20M |
| Gross Profit | 77.40M | 70.90M | 63.70M | 56.90M | 51.10M |
| EBITDA | 42.20M | 37.50M | 32.90M | 32.50M | 27.70M |
| Net Income | 30.10M | 25.60M | 23.50M | 24.50M | 19.20M |
Balance Sheet | |||||
| Total Assets | 90.70M | 84.70M | 75.10M | 76.50M | 84.00M |
| Cash, Cash Equivalents and Short-Term Investments | 26.40M | 20.50M | 21.80M | 18.70M | 23.10M |
| Total Debt | 9.30M | 9.30M | 8.20M | 9.30M | 17.10M |
| Total Liabilities | 39.00M | 38.50M | 33.10M | 34.50M | 40.60M |
| Stockholders Equity | 51.70M | 46.20M | 42.00M | 42.00M | 43.40M |
Cash Flow | |||||
| Free Cash Flow | 37.50M | 22.80M | 28.80M | 24.90M | 25.40M |
| Operating Cash Flow | 37.90M | 28.40M | 32.20M | 27.20M | 26.70M |
| Investing Cash Flow | -5.40M | -5.40M | -3.10M | -2.30M | -1.30M |
| Financing Cash Flow | -26.40M | -24.10M | -25.80M | -29.70M | -39.20M |
Alfa Financial Software plc Technical Analysis
Negative
209.00
Price Trends
184.75
Negative
201.27
Negative
212.57
Negative
Market Momentum
-12.88
Positive
21.81
Positive
13.55
Positive
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 209 is above the 20-day moving average (MA) of 166.13, above the 50-day MA of 184.75, and below the 200-day MA of 212.57, indicating a bearish trend. The MACD of -12.88 indicates Positive momentum. The RSI at 21.81 is Positive, neither overbought nor oversold. The STOCH value of 13.55 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £429.36M | 11.06 | 58.56% | 3.58% | 18.44% | 33.73% | |
74 Outperform | £7.75B | 29.15 | 48.58% | 1.94% | 7.76% | 17.61% | |
72 Outperform | £118.25M | 33.60 | 7.76% | 1.92% | -6.63% | -7.88% | |
70 Outperform | £467.83M | 71.10 | 1.53% | 1.73% | -0.18% | 11.49% | |
68 Neutral | £173.04M | 37.63 | 5.22% | 0.80% | 22.80% | -32.13% | |
63 Neutral | £62.61M | 23.49 | -1.09% | 2.00% | 9.69% | -319.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GB:ALFA
Alfa Financial Software plc
145.00
-64.42
-30.76%
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Alfa Financial Software plc Corporate Events
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Alfa Financial Software Publishes 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Mar 31, 2026
Alfa Financial Software Holdings PLC, a provider of mission-critical SaaS platforms to the global asset finance and leasing sector, has built its Alfa Systems product into a core system for major automotive, equipment and wholesale finance provide...
Business Operations and StrategyDividendsFinancial Disclosures
Alfa Financial Software lifts revenue and dividends as SaaS engine powers growth
Positive
Mar 12, 2026
Alfa Financial Software reported a 15% rise in 2025 revenue to £126.7m, driven by 16% growth in subscription income, with operating profit up 17% and a robust 31.6% margin. The group ended the year with £26.4m in cash, no bank debt, and ...
Business Operations and StrategyFinancial Disclosures
Alfa Financial Software sets 12 March date for FY25 results and investor webcasts
Positive
Mar 2, 2026
Alfa Financial Software Holdings PLC will publish its full-year results for the 12 months to 31 December 2025 on 12 March 2026, followed by a webcast presentation and QA for analysts and institutional investors the same morning. The company will a...
Business Operations and StrategyExecutive/Board Changes
Alfa Financial Software Names Andrew Dickson as Incoming CFO
Positive
Feb 12, 2026
Alfa Financial Software Holdings PLC has appointed Andrew Dickson as its next Chief Financial Officer, succeeding Duncan Magrath, who plans to retire after six years in the role. Dickson will join as CFO designate on 6 July 2026 and become an Exec...
Regulatory Filings and Compliance
Alfa Financial Software Confirms Updated Total Voting Rights
Neutral
Jan 30, 2026
Alfa Financial Software Holdings PLC has confirmed that, as of 30 January 2026, its issued share capital comprises 300,000,000 ordinary shares, of which 3,351,689 are held in treasury without voting rights, leaving 296,648,311 voting shares in iss...
Business Operations and StrategyFinancial Disclosures
Alfa Financial Software Beats FY25 Forecasts on Strong Q4 and Growing Pipeline
Positive
Jan 29, 2026
Alfa Financial Software reported a strong fourth quarter, lifting unaudited full-year 2025 revenue to £126.5m, about £2m ahead of market expectations and 15% higher year-on-year, with operating profit up 17% to £40m and total contra...
Regulatory Filings and Compliance
Alfa Financial Software Updates Total Voting Rights to 296.6 Million Shares
Neutral
Jan 2, 2026
Alfa Financial Software Holdings plc has confirmed that, as of 31 December 2025, its issued share capital comprises 300 million ordinary shares, of which 3,369,802 are held in treasury without voting rights, leaving 296,630,198 voting shares in ci...
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.