Alfa Financial Software plc (ALFA) AI Stock Analysis

• Market Cap: £670.09M
• Dividend Yield: 3.43%
• Average Volume (3M): 295.48K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.48
• Revenue Growth: 7.75%
• EPS Growth: 8.77%
• Country: UK
• Employees: 502
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 296,584,630
• 10 Day Avg. Volume: 373,337
• 30 Day Avg. Volume: 295,478
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £270.00
• Price Target Upside: 19.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: 262.00p ▲(15.93%Upside)

Alfa Financial Software plc demonstrates a robust financial profile with strong revenue growth and margins, supported by a solid balance sheet. Positive corporate events and a moderate valuation further enhance its attractiveness. However, technical indicators suggest caution, tempering the overall score.

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 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 Money

Alfa 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 presents a strong financial profile with consistent revenue and profit growth, robust margins, and prudent balance sheet management. The company's healthy cash flows and low leverage support its financial stability and growth potential.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.90M	102.00M	93.30M	83.20M	78.87M
Gross Profit	70.90M	63.70M	56.90M	51.10M	60.47M
EBITDA	37.50M	32.90M	30.80M	27.50M	27.15M
Net Income	25.60M	23.50M	24.50M	19.20M	20.30M
Balance Sheet
Total Assets	84.70M	75.10M	76.50M	84.00M	95.49M
Cash, Cash Equivalents and Short-Term Investments	20.50M	21.80M	18.70M	23.10M	37.02M
Total Debt	9.30M	8.20M	9.30M	17.10M	17.49M
Total Liabilities	38.50M	33.10M	34.50M	40.60M	35.26M
Stockholders Equity	46.20M	42.00M	42.00M	43.40M	60.23M
Cash Flow
Free Cash Flow	22.80M	28.80M	24.90M	25.40M	24.64M
Operating Cash Flow	28.40M	32.20M	27.20M	26.70M	25.65M
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: Positive
• Last Price: 226.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 226 is above the 20-day moving average (MA) of 221.58, below the 50-day MA of 227.88, and above the 200-day MA of 220.50, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.54 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CER	76 Outperform	£449.89M	31.64	30.29%	0.92%	2.33%	1.11%
ALFA	72 Outperform	£670.09M	26.04	58.00%	3.43%	7.75%	8.77%
APTD	70 Outperform	£165.34M	34.13	8.42%	1.79%	-6.21%	21.39%
IDOX	69 Neutral	£282.71M	45.26	8.06%	1.11%	10.93%	12.30%
Sector *	69 Neutral	¥234.25B	15.00	7.54%	2.58%	9.28%	5.90%
CLBS	65 Neutral	£67.30M	13.39	16.09%	1.95%	26.05%	7.09%
NCC	59 Neutral	£468.71M	―	-10.60%	2.02%	―	―

Alfa Financial Software plc Corporate Events

Alfa Financial Software Announces Total Voting Rights Update

Alfa Financial Software Holdings PLC announced its total voting rights as of July 31, 2025, with an issued ordinary share capital of 300 million shares, of which 3,415,375 are held in Treasury, resulting in 296,584,625 voting rights. This information is crucial for shareholders to determine their notification requirements under the Disclosure and Transparency Rules.

The most recent analyst rating on (GB:ALFA) stock is a Buy with a £2.70 price target. To see the full list of analyst forecasts on Alfa Financial Software plc stock, see the GB:ALFA Stock Forecast page.

Alfa Financial Software Reports Strong H1 2025 Performance

Alfa Financial Software Holdings PLC reported a strong trading performance for the first half of 2025, with revenues reaching £62.5 million, marking a 20% increase from the previous year. The company has seen significant growth in subscription and software engineering revenues, driven by the demand for Alfa Systems 6 and its additional modules. Alfa’s robust pipeline and strategic investments in product development and client partnerships position it well to meet its full-year expectations, reinforcing its market leadership in the asset finance industry.

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.

Alfa Financial Software Updates Total Voting Rights

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.

Alfa Financial Software Announces Total Voting Rights Update

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.

Alfa Financial Software Grants Options to Key Executives

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.