DB:A9F

Stock Analysis Report

Alfa Financial Software Holdings

Executive Summary

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 the Asia Pacific.

Rewards

PE ratio (19.1x) is below the German market (20.7x)

Earnings are forecast to grow 9.75% per year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Alfa Financial Software Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A9F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

A9F

-0.4%

DE Software

0.2%

DE Market


1 Year Return

-2.6%

A9F

33.5%

DE Software

13.6%

DE Market

Return vs Industry: A9F underperformed the German Software industry which returned 33.5% over the past year.

Return vs Market: A9F underperformed the German Market which returned 13.6% over the past year.


Shareholder returns

A9FIndustryMarket
7 Day0.3%-0.4%0.2%
30 Day15.7%-1.3%-0.08%
90 Day24.5%11.6%6.0%
1 Year-2.6%-2.6%35.3%33.5%17.1%13.6%
3 Yearn/a61.5%55.1%19.6%9.0%
5 Yearn/a145.7%128.3%38.9%20.0%

Price Volatility Vs. Market

How volatile is Alfa Financial Software Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alfa Financial Software Holdings undervalued compared to its fair value and its price relative to the market?

19.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A9F (€1.21) is trading above our estimate of fair value (€0.33)

Significantly Below Fair Value: A9F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A9F is good value based on its PE Ratio (19.1x) compared to the Software industry average (39.9x).

PE vs Market: A9F is good value based on its PE Ratio (19.1x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: A9F is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: A9F is overvalued based on its PB Ratio (3.9x) compared to the DE Software industry average (2.9x).


Next Steps

Future Growth

How is Alfa Financial Software Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A9F's forecast earnings growth (9.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: A9F's earnings (9.8% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: A9F's earnings are forecast to grow, but not significantly.

Revenue vs Market: A9F's revenue (4% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: A9F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A9F's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Alfa Financial Software Holdings performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A9F has high quality earnings.

Growing Profit Margin: A9F's current net profit margins (22.4%) are lower than last year (29.7%).


Past Earnings Growth Analysis

Earnings Trend: A9F's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: A9F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A9F had negative earnings growth (-31.1%) over the past year, making it difficult to compare to the Software industry average (14.6%).


Return on Equity

High ROE: A9F's Return on Equity (20.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alfa Financial Software Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: A9F's short term assets (£69.8M) exceed its short term liabilities (£20.1M).

Long Term Liabilities: A9F's short term assets (£69.8M) exceed its long term liabilities (£19.9M).


Debt to Equity History and Analysis

Debt Level: A9F is debt free.

Reducing Debt: A9F has not had any debt for past 5 years.

Debt Coverage: A9F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: A9F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: A9F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if A9F's debt is covered by short term assets.


Next Steps

Dividend

What is Alfa Financial Software Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate A9F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate A9F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if A9F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if A9F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of A9F's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Alfa Financial Software Holdings's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Andrew Denton (47yo)

3.3yrs

Tenure

UK£338,000

Compensation

Mr. Andrew Denton has been the Chief Executive Officer of Alfa Financial Software Holdings PLC and CHP Consulting Limited since September 2016. Mr. Denton served as Chief Operating Officer at Alfa Financia ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD445.36K) is below average for companies of similar size in the German market ($USD826.58K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

45.5yo

Average Age

Experienced Management: A9F's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

0.4yrs

Average Tenure

53yo

Average Age

Experienced Board: A9F's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andrew Denton (47yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: UK£338.00k
  • Andrew Page (56yo)

    Executive Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: UK£438.00k
  • Steve Taplin

    Global Sales & Marketing Director

    • Tenure: 9.9yrs
  • Ralph Neuff (44yo)

    Chief Information Officer

    • Tenure: 3.9yrs
  • Mike Mayes (40yo)

    Chief Commercial Officer

    • Tenure: 17.9yrs
  • Matthew White

    Director & COO

    • Tenure: 0.2yrs
  • Lucy Matthews

    Chief People Officer

    • Tenure: 0yrs
  • Matthew Phillips

    Head of Australian Operations

    • Tenure: 0yrs
  • John Miller

    Interim Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Steve Breach (50yo)

    Independent Non-executive Director

    • Tenure: 0.3yrs
  • Chris Sullivan (61yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Andrew Denton (47yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: UK£338.00k
  • Andrew Page (56yo)

    Executive Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: UK£438.00k
  • Matthew White

    Director & COO

    • Tenure: 0.2yrs

Company Information

Alfa Financial Software Holdings PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alfa Financial Software Holdings PLC
  • Ticker: A9F
  • Exchange: DB
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£307.200m
  • Listing Market Cap: UK£364.829m
  • Shares outstanding: 300.00m
  • Website: https://www.alfasystems.com

Number of Employees


Location

  • Alfa Financial Software Holdings PLC
  • Moor Place
  • 1 Fore Street Avenue
  • London
  • Greater London
  • EC2Y 9DT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALFALSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2017
ALFALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2017
A9FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2017
AFLQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2017

Biography

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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 22:10
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.