Alfa Financial Software plc (ALFA) AI Stock Analysis

• Market Cap: £645.45M
• Dividend Yield: 3.53%
• Average Volume (3M): 314.57K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.45
• Revenue Growth: 18.44%
• EPS Growth: 33.73%
• Country: UK
• Employees: 502
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 296,616,640
• 10 Day Avg. Volume: 395,293
• 30 Day Avg. Volume: 314,571
• PEG Ratio: 2.82
• Price to Book (P/B): 13.69
• Price to Sales (P/S): 5.76
• P/FCF Ratio: 27.75
• 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: £272.50
• Price Target Upside: 24.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 249.00p ▲(13.96% Upside)

Alfa Financial Software plc's strong financial performance and positive corporate events are significant strengths, contributing to a robust overall score. The technical analysis suggests caution due to bearish momentum, while the valuation remains balanced with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and reliable shareholder returns.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk, providing stability and resilience against economic fluctuations.

Negative Factors

Market Momentum

Bearish market momentum could signal investor concerns or market skepticism, potentially affecting future capital raising or stock performance.

Lack of Recent Corporate Events

The absence of recent corporate events may indicate a lack of strategic initiatives or partnerships, potentially slowing growth or innovation.

Technical Analysis

Weak technical indicators may reflect underlying market concerns, which could impact investor confidence and stock liquidity.

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 generates revenue through a combination of software licensing, implementation services, and ongoing support and maintenance contracts. The primary revenue stream comes from the licensing of its Alfa Systems platform, which allows clients to use the software for their asset finance operations. Additionally, the company earns revenues from consulting and implementation services that help clients tailor the software to their specific needs and integrate it into their existing systems. Ongoing support and maintenance contracts provide a recurring revenue stream as clients pay for software updates and technical assistance. Significant partnerships with financial institutions and technology providers further enhance ALFA's revenue potential, as they enable the company to expand its market reach and offer integrated solutions that meet evolving client demands.

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 ability to generate healthy cash flows underscores its financial health and potential for sustaining growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.10M	109.90M	102.00M	93.30M	83.20M	78.87M
Gross Profit	78.10M	70.90M	63.70M	56.90M	51.10M	60.47M
EBITDA	38.70M	37.50M	32.90M	32.50M	27.70M	27.15M
Net Income	29.60M	25.60M	23.50M	24.50M	19.20M	20.30M
Balance Sheet
Total Assets	91.70M	84.70M	75.10M	76.50M	84.00M	95.49M
Cash, Cash Equivalents and Short-Term Investments	23.90M	20.50M	21.80M	18.70M	23.10M	37.02M
Total Debt	9.50M	9.30M	8.20M	9.30M	17.10M	17.49M
Total Liabilities	40.60M	38.50M	33.10M	34.50M	40.60M	35.26M
Stockholders Equity	51.10M	46.20M	42.00M	42.00M	43.40M	60.23M
Cash Flow
Free Cash Flow	31.60M	22.80M	28.80M	24.90M	25.40M	24.64M
Operating Cash Flow	32.10M	28.40M	32.20M	27.20M	26.70M	25.65M
Investing Cash Flow	-5.70M	-5.40M	-3.10M	-2.30M	-1.30M	-1.41M
Financing Cash Flow	-24.80M	-24.10M	-25.80M	-29.70M	-39.20M	-45.94M

Alfa Financial Software plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 218.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 218.5 is below the 20-day moving average (MA) of 221.15, below the 50-day MA of 223.79, and below the 200-day MA of 222.27, indicating a bearish trend. The MACD of -1.40 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 40.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	74 Outperform	£645.45M	21.73	62.38%	3.53%	18.44%	33.73%
APTD	72 Outperform	£161.88M	37.16	7.71%	1.86%	-6.63%	-7.88%
IDOX	66 Neutral	£300.95M	48.18	8.06%	1.07%	10.93%	12.30%
CER	62 Neutral	£358.44M	21.60	30.74%	1.16%	3.67%	8.74%
CLBS	62 Neutral	£51.14M	16.37	11.22%	2.49%	-25.63%	-20.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCC	54 Neutral	£433.96M	25.42	―	2.16%	―	―

Alfa Financial Software plc Corporate Events

Alfa Financial Software Updates Total Voting Rights

Alfa Financial Software Holdings PLC announced that as of November 30, 2025, its total voting rights amounted to 296,616,644, following the exclusion of 3,383,356 shares held in Treasury, which do not carry voting rights. This update is significant for shareholders as it affects the calculations needed to determine their interests in the company under the FCA’s Disclosure and Transparency Rules.

Alfa Financial Software Raises Full-Year Profit Expectations Amid Strong Q3 Performance

Alfa Financial Software Holdings PLC reported a strong trading performance for Q3 2025, with a 12% increase in revenue compared to the same quarter last year. The company raised its full-year profit expectations due to effective cost control and a robust pipeline of projects. Alfa’s Total Contract Value (TCV) reached a record £222m, supported by increased subscription and delivery revenues. The company continues to expand its market capabilities and has successfully completed several key project deliveries, enhancing its industry position.

Alfa Financial Software Updates Shareholder Voting Rights

Alfa Financial Software Holdings PLC announced that as of 30 September 2025, the company’s total voting rights stand at 296,612,144, following the issuance of 300,000,000 ordinary shares, with 3,387,856 held in Treasury and thus non-voting. This update is in accordance with the FCA’s Disclosure and Transparency Rule, allowing shareholders to calculate their interest in the company. This announcement underscores Alfa’s transparency in shareholder communications and its adherence to regulatory requirements, which is crucial for maintaining investor confidence and market integrity.