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:
169.00 p
▼(-19.14% Downside)
Action:Reiterated
Date: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
Strong cash generation
Alfa's operating and free cash flow jumped materially in 2025, demonstrating the firm's ability to convert earnings into cash. Persistent positive FCF supports funding for product development, dividends, and selective M&A without relying on external financing, underpinning durable financial flexibility.
Negative Factors
Decelerating revenue growth
Revenue growth has slowed from prior mid-to-low double digit rates to roughly 5.5% in 2025, signaling waning top-line momentum. Slower organic growth makes it harder to expand operating leverage and requires stronger cross-sell/market expansion to sustain long-term earnings progression.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Alfa's operating and free cash flow jumped materially in 2025, demonstrating the firm's ability to convert earnings into cash. Persistent positive FCF supports funding for product development, dividends, and selective M&A without relying on external financing, underpinning durable financial flexibility.
Read all positive factors
Alfa Financial Software plc (ALFA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£457.19M
Dividend Yield3.58%
Average Volume (3M)314.57K
Price to Earnings (P/E)15.1
Beta (1Y)0.42
Revenue Growth15.29%
EPS Growth17.28%
CountryUK
Employees502
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding297,803,700
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
£260.00Price Target Upside24.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)£134.58M
Alfa Financial Software plc Business Overview & Revenue Model
Company Description
Alfa Financial Software Holdings PLC, through its various subsidiaries, is a global provider of specialized software platforms and professional advisory services tailored for the asset finance industry. Operating across the United Kingdom, United ...
How the Company Makes Money
ALFA primarily makes money by licensing its enterprise software and providing related services to customers in the asset and automotive finance and leasing sector. Key revenue streams include: (1) Software licensing fees for the use of its core pl...
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
153.63
Negative
164.06
Negative
190.51
Negative
Market Momentum
-0.81
Positive
44.17
Neutral
50.29
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 209 is above the 20-day moving average (MA) of 154.86, above the 50-day MA of 153.63, and above the 200-day MA of 190.51, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 50.29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £7.23B | 19.73 | 81.91% | 1.94% | 8.75% | 15.70% | |
75 Outperform | £457.19M | 15.15 | 58.56% | 3.58% | 15.29% | 17.28% | |
68 Neutral | £203.01M | 82.94 | 5.22% | 0.80% | 19.00% | -53.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | £120.48M | 28.82 | 7.38% | 1.92% | -7.27% | -15.76% | |
56 Neutral | £47.54M | -21.98 | -3.09% | 2.00% | 5.73% | -5.65% | |
55 Neutral | £439.45M | -5.94 | -14.39% | 1.73% | 0.82% | -997.08% |
* Technology Sector Average
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Alfa Financial Software plc Corporate Events
Regulatory Filings and Compliance
Alfa Financial Software Updates Share Capital and Voting Rights Total
Neutral
Apr 30, 2026
Alfa Financial Software Holdings PLC has confirmed that, as of 30 April 2026, it has 300 million issued ordinary shares, of which 2,196,283 are held in treasury without voting rights. This leaves 297,803,717 voting shares in circulation, each carr...
Stock BuybackDividendsShareholder Meetings
Alfa Financial Software Investors Back All AGM Resolutions, Flag Concern Over One Director
Neutral
Apr 30, 2026
Alfa Financial Software Holdings PLC reported that all resolutions at its 2026 annual general meeting were passed by poll, including approval of the 2025 annual report, the directors’ remuneration report and a final dividend of 1.5 pence per...
Business Operations and StrategyFinancial Disclosures
Alfa Financial Software posts solid Q1 as pipeline and TCV strengthen
Positive
Apr 30, 2026
Alfa Financial Software reported that first-quarter 2026 trading was in line with expectations, supported by a robust late-stage pipeline and rising total contract value. The company secured a new Canadian implementation for a global automotive OE...
Executive/Board ChangesRegulatory Filings and Compliance
Alfa Financial Software Grants LTIP and Deferred Bonus Share Awards to Executives
Neutral
Apr 13, 2026
Alfa Financial Software Holdings has granted a 2026 long-term incentive award to chief operating officer Matthew White over 252,186 shares under its 2017 LTIP, vesting in April 2029 subject to performance conditions and with no consideration payab...
Executive/Board ChangesRegulatory Filings and Compliance
Alfa Financial Software Executives Secure LTIP Vesting and Transfer Shares to Spouses
Neutral
Apr 9, 2026
Alfa Financial Software Holdings PLC said that awards granted under its 2017 Long Term Incentive Plan on 6 April 2023 vested at 73.6% of the maximum on 7 April 2026, with shares net settled to meet tax obligations and the balance retained by the e...
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...
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.