Alpha Financial Markets Consulting (AIM:AFM) - Share price, News & Analysis

AFM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	1/6
Financial Health	6/6
Dividends	2/6

AFM Stock Overview

Rewards

Trading at 33.9% below our estimate of its fair value

Earnings are forecast to grow 15% per year

Risk Analysis

Dividend of 1.99% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (3.2%) are lower than last year (5.9%)

Alpha Financial Markets Consulting Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Alpha Financial Markets Consulting
Historical stock prices
Current Share Price	UK£3.90
52 Week High	UK£4.96
52 Week Low	UK£2.90
Beta	1.26
1 Month Change	-2.50%
3 Month Change	0.26%
1 Year Change	9.24%
3 Year Change	68.10%
5 Year Change	n/a
Change since IPO	129.41%

Recent News & Updates

May 12

Is Alpha Financial Markets Consulting plc (LON:AFM) Trading At A 38% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alpha Financial...

Apr 08

Returns At Alpha Financial Markets Consulting (LON:AFM) Are On The Way Up

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

	AFM	GB Professional Services	GB Market
7D	6.1%	-1.6%	-0.4%
1Y	9.2%	0.9%	-3.0%

Return vs Industry: AFM exceeded the UK Professional Services industry which returned 1.6% over the past year.

Return vs Market: AFM exceeded the UK Market which returned -2.7% over the past year.

Price Volatility

Is AFM's price volatile compared to industry and market?
AFM volatility
AFM Average Weekly Movement	6.8%
Professional Services Industry Average Movement	5.0%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: AFM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AFM's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2016	656	Euan N. Fraser	https://www.alphafmc.com

Alpha Financial Markets Consulting plc provides consulting and related services to the asset and wealth management, and insurance industries in the United Kingdom, the United States, Europe, and Asia. The company offers services in the areas of mergers and acquisitions integrations, benchmarking, investments, regulatory compliance and risk, operations and outsourcing, distribution, digital transformation, investment guidelines, fintech and innovation, ETF and indexing, pension and retail investments, ESG and responsible investment, and insurance. It serves asset managers, wealth managers, intermediaries, investment platforms, pension companies, and service and infrastructure providers, as well as international groups and boutique firms.

Alpha Financial Markets Consulting Fundamentals Summary

How do Alpha Financial Markets Consulting's earnings and revenue compare to its market cap?
AFM fundamental statistics
Market Cap	UK£438.71m
Earnings (TTM)	UK£3.81m
Revenue (TTM)	UK£118.83m

115.3x

P/E Ratio

3.7x

P/S Ratio

Is AFM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFM income statement (TTM)
Revenue	UK£118.83m
Cost of Revenue	UK£74.46m
Gross Profit	UK£44.37m
Other Expenses	UK£40.57m
Earnings	UK£3.81m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 23, 2022

Earnings per share (EPS)	0.034
Gross Margin	37.34%
Net Profit Margin	3.20%
Debt/Equity Ratio	0%

How did AFM perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

215%

Payout Ratio

Valuation

Is Alpha Financial Markets Consulting undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

33.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AFM (£3.9) is trading below our estimate of fair value (£5.9)

Significantly Below Fair Value: AFM is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: AFM is poor value based on its Price-To-Earnings Ratio (115.3x) compared to the UK Professional Services industry average (25.9x).

PE vs Market: AFM is poor value based on its Price-To-Earnings Ratio (115.3x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: AFM is poor value based on its PEG Ratio (7.7x)

Price to Book Ratio

PB vs Industry: AFM is overvalued based on its Price-To-Book Ratio (3.5x) compared to the GB Professional Services industry average (2.6x).

Future Growth

How is Alpha Financial Markets Consulting forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFM's forecast earnings growth (15% per year) is above the savings rate (0.9%).

Earnings vs Market: AFM's earnings (15% per year) are forecast to grow faster than the UK market (11.3% per year).

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

Revenue vs Market: AFM's revenue (8.3% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: AFM's revenue (8.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AFM's Return on Equity is forecast to be low in 3 years time (18.3%).

Past Performance

How has Alpha Financial Markets Consulting performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

34.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AFM has a large one-off loss of £5.3M impacting its September 30 2021 financial results.

Growing Profit Margin: AFM's current net profit margins (3.2%) are lower than last year (5.9%).

Past Earnings Growth Analysis

Earnings Trend: AFM's earnings have grown significantly by 34.2% per year over the past 5 years.

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

Earnings vs Industry: AFM had negative earnings growth (-31.6%) over the past year, making it difficult to compare to the Professional Services industry average (39.5%).

Return on Equity

High ROE: AFM's Return on Equity (3.1%) is considered low.

Financial Health

How is Alpha Financial Markets Consulting's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AFM's short term assets (£67.7M) exceed its short term liabilities (£50.6M).

Long Term Liabilities: AFM's short term assets (£67.7M) exceed its long term liabilities (£29.3M).

Debt to Equity History and Analysis

Debt Level: AFM is debt free.

Reducing Debt: AFM had no debt 5 years ago.

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

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

Balance Sheet

Dividend

What is Alpha Financial Markets Consulting current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AFM's dividend (1.99%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: AFM's dividend (1.99%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

Stable Dividend: AFM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AFM's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (214.6%), AFM's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (75.8%), AFM's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure

CEO

Euan N. Fraser

9.33yrs

Tenure

UK£1,110,000

Compensation

Mr. Euan N. B. Fraser serves as the Global Chief Executive Officer at Alpha Financial Markets Consulting plc since 2013. Mr. Fraser served as the Chief Executive Officer (UK) at Alpha Financial Markets Con...

CEO Compensation Analysis

Compensation vs Market: Euan N.'s total compensation ($USD1.39M) is above average for companies of similar size in the UK market ($USD998.19K).

Compensation vs Earnings: Euan N.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: AFM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: AFM's board of directors are considered experienced (4.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31