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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)

79Outperform
Alfa Financial Software plc scores a 78.5, reflecting its strong financial performance, strategic growth initiatives, and solid market positioning. The company's successful transition to a SaaS model and robust product launches have strengthened its competitive edge. Technical analysis shows some caution, but overall, the company's financial health and potential for sustained growth support a positive outlook.

Alfa Financial Software plc (ALFA) vs. S&P 500 (SPY)

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 licensing of its software solutions to clients in the asset finance industry. The company offers both perpetual and subscription-based licensing models, allowing customers flexibility in how they access and utilize its platforms. Additionally, ALFA derives income from providing implementation and consultancy services, ensuring clients can effectively integrate and leverage their software solutions. Maintenance and support services also contribute to the company's earnings, offering ongoing technical assistance and updates to clients. Key partnerships with financial institutions and technology providers further enhance ALFA's market presence and revenue opportunities.

Alfa Financial Software plc Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
102.00M93.30M83.20M78.87M64.48M
Gross Profit
63.70M56.90M51.10M60.47M43.56M
EBIT
30.10M27.80M24.40M22.90M13.40M
EBITDA
32.60M30.80M27.50M27.15M16.67M
Net Income Common Stockholders
23.50M24.50M19.20M20.30M10.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.80M18.70M23.10M37.02M58.84M
Total Assets
75.10M76.50M84.00M95.49M117.89M
Total Debt
8.20M9.30M17.10M17.49M19.00M
Net Debt
-13.60M-9.40M-6.00M-19.53M-39.84M
Total Liabilities
33.10M34.50M40.60M35.26M35.55M
Stockholders Equity
42.00M42.00M43.40M60.23M82.34M
Cash FlowFree Cash Flow
28.80M24.90M25.40M24.64M15.69M
Operating Cash Flow
32.20M27.20M26.70M25.65M17.77M
Investing Cash Flow
-3.10M-2.30M-1.30M-1.41M-2.08M
Financing Cash Flow
-25.80M-29.70M-39.20M-45.94M-1.61M

Alfa Financial Software plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price222.00
Price Trends
50DMA
223.04
Negative
100DMA
219.80
Positive
200DMA
211.01
Positive
Market Momentum
MACD
-1.42
Negative
RSI
57.55
Neutral
STOCH
72.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALFA, the sentiment is Positive. The current price of 222 is above the 20-day moving average (MA) of 209.82, below the 50-day MA of 223.04, and above the 200-day MA of 211.01, indicating a neutral trend. The MACD of -1.42 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ALFA.

Alfa Financial Software plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£637.79M24.8858.00%0.61%7.75%8.77%
GBFDM
66
Neutral
£245.43M11.9528.48%12.83%-22.84%-49.60%
59
Neutral
$10.65B10.45-6.56%3.01%7.31%-12.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ALFA
Alfa Financial Software plc
222.00
56.70
34.30%
GB:FDM
FDM Group (Holdings)
224.50
-98.54
-30.50%
KRMCF
KRM22
0.33
0.03
10.00%

Alfa Financial Software plc Corporate Events

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.

Spark’s Take on GB:ALFA Stock

According to Spark, TipRanks’ AI Analyst, GB:ALFA is a Outperform.

Alfa Financial Software plc exhibits a strong financial foundation with consistent profit growth and robust cash flow generation. Despite mixed technical indicators, the company’s strategic shift towards a SaaS model and successful product launches bolster its market position and future growth prospects. The valuation is reasonable, supporting a positive outlook.

To see Spark’s full report on GB:ALFA stock, click here.

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.

Spark’s Take on GB:ALFA Stock

According to Spark, TipRanks’ AI Analyst, GB:ALFA is a Outperform.

Alfa Financial Software plc has a strong financial performance with consistent revenue and profit growth, supported by robust margins and healthy cash flows. The recent corporate events highlight the company’s strategic success and market positioning, which bolster its future prospects. Despite some short-term bearish technical indicators, the company’s valuation remains reasonable, making it an attractive investment in the software application sector.

To see Spark’s full report on GB:ALFA stock, click here.

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.

Spark’s Take on GB:ALFA Stock

According to Spark, TipRanks’ AI Analyst, GB:ALFA is a Outperform.

Alfa Financial Software plc has a strong financial performance with consistent revenue and profit growth, supported by robust margins and healthy cash flows. The recent corporate events highlight the company’s strategic success and market positioning, which bolster its future prospects. Despite some short-term bearish technical indicators, the company’s valuation remains reasonable, making it an attractive investment in the software application sector.

To see Spark’s full report on GB:ALFA stock, click here.

Shareholder MeetingsFinancial Disclosures
Alfa Financial Software Releases 2024 Annual Report and Announces 2025 AGM
Neutral
Apr 1, 2025

Alfa Financial Software Holdings PLC has released its 2024 Annual Report and announced the Notice of its 2025 Annual General Meeting (AGM), scheduled for 30 April 2025. The documents are available on the company’s website and have been submitted to the National Storage Mechanism. This announcement underscores Alfa’s commitment to transparency and engagement with its shareholders, reflecting its robust industry positioning and ongoing operations in 37 countries.

Regulatory Filings and Compliance
Alfa Financial Software Announces Total Voting Rights Update
Neutral
Mar 31, 2025

Alfa Financial Software Holdings PLC announced its total voting rights as of March 31, 2025, in compliance with the FCA’s Disclosure and Transparency Rule. The company has an issued ordinary share capital of 300,000,000 shares, with 4,643,299 held in Treasury, resulting in 295,356,701 voting rights. This information is crucial for shareholders to determine their interest in the company under the relevant rules.

DividendsBusiness Operations and StrategyFinancial Disclosures
Alfa Financial Software Achieves Record Growth and Strong Market Positioning in 2024
Positive
Mar 13, 2025

Alfa Financial Software Holdings PLC reported a record-breaking year with a Total Contract Value (TCV) of £221.3 million, marking a 34% increase from the previous year. The company saw significant growth in subscription revenues, which rose by 18%, and announced a 15% increase in total dividends. The successful launch of Alfa Systems 6 and a robust sales pipeline have positioned the company for continued growth, with expectations of double-digit revenue growth in 2025. Alfa’s strategic shift towards a SaaS subscription model and diversification of its customer base have strengthened its market position and operational performance.

Financial Disclosures
Alfa Financial Software to Announce Full-Year Results and Host Investor Presentation
Neutral
Mar 3, 2025

Alfa Financial Software Holdings PLC announced it will report its full-year results for the year ending December 31, 2024, on March 13, 2025. Following the results announcement, a live investor presentation will be held on March 14, 2025, featuring key company executives. This presentation is open to all existing and potential shareholders, allowing them to submit questions beforehand or during the event. The announcement underscores Alfa’s commitment to transparency and engagement with its investors, potentially impacting its market perception and stakeholder relations.

Regulatory Filings and Compliance
Alfa Financial Software Updates Total Voting Rights
Neutral
Feb 28, 2025

Alfa Financial Software Holdings PLC announced that as of 28 February 2025, its total voting rights consist of 295,354,944 shares, following the exclusion of 4,645,056 treasury shares which do not carry voting rights. This update is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure and Transparency Rules.

Regulatory Filings and Compliance
Alfa Financial Announces Total Voting Rights Update
Neutral
Jan 31, 2025

Alfa Financial Software Holdings PLC announced the total voting rights within the company as of January 31, 2025. Out of the 300,000,000 issued ordinary shares, 4,656,774 are held in treasury with no voting rights, leading to a total of 295,343,226 voting rights. This information assists shareholders in assessing their interests and obligations under the Disclosure and Transparency Rules.

Business Operations and StrategyFinancial Disclosures
Alfa Financial Software Reports Strong FY24 with Record Contract Wins
Positive
Jan 30, 2025

Alfa Financial Software Holdings PLC reported strong financial performance for the fiscal year 2024, with operating profits up by 13% and total contract value (TCV) increasing by 34% to £221m. The company saw significant growth in subscription and software revenues, driven by the successful launch of Alfa Systems 6 and a record number of contract wins. The transition to a SaaS model aligns with market trends, and the renaming of revenue streams reflects this strategic shift. The company’s robust delivery capability and diverse pipeline underscore its competitive edge and promising prospects for future growth.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.