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Alpha Financial Markets Consulting

Market Cap

UK£331.9m

Last Updated

2021/05/17 18:13 UTC

Data Sources

Company Financials +

Executive Summary

Alpha Financial Markets Consulting plc provides consulting services to the asset and wealth management industries in the United Kingdom, the United States, Europe, and Asia. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Alpha Financial Markets Consulting's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AFM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AFM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0%

AFM

-0.7%

GB Professional Services

0.2%

GB Market


1 Year Return

88.4%

AFM

7.9%

GB Professional Services

22.8%

GB Market

Return vs Industry: AFM exceeded the UK Professional Services industry which returned 8.9% over the past year.

Return vs Market: AFM exceeded the UK Market which returned 23.3% over the past year.


Shareholder returns

AFMIndustryMarket
7 Day0%-0.7%0.2%
30 Day10.9%-3.1%0.1%
90 Day27.5%1.7%5.1%
1 Year90.1%88.4%10.0%7.9%28.3%22.8%
3 Year84.9%73.8%27.6%19.6%9.4%-3.1%
5 Yearn/a84.9%65.5%47.0%19.3%

Long-Term Price Volatility Vs. Market

How volatile is Alpha Financial Markets Consulting's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

58.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFM (£3.25) is trading above our estimate of fair value (£2.76)

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


Price To Earnings Ratio

PE vs Industry: AFM is poor value based on its PE Ratio (59x) compared to the UK Professional Services industry average (37.3x).

PE vs Market: AFM is poor value based on its PE Ratio (59x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: AFM is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: AFM is overvalued based on its PB Ratio (3.5x) compared to the GB Professional Services industry average (2.9x).


Future Growth

How is Alpha Financial Markets Consulting forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFM's forecast earnings growth (27.8% per year) is above the savings rate (0.9%).

Earnings vs Market: AFM's earnings (27.8% per year) are forecast to grow faster than the UK market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFM's revenue (7.7% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: AFM's revenue (7.7% 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 (17.3%).


Past Performance

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

60.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFM has a large one-off loss of £3.8M impacting its September 30 2020 financial results.

Growing Profit Margin: AFM's current net profit margins (5.9%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: AFM's earnings have grown significantly by 60.2% 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 (-28.5%) over the past year, making it difficult to compare to the Professional Services industry average (-10.4%).


Return on Equity

High ROE: AFM's Return on Equity (5.8%) is considered low.


Financial Health

How is Alpha Financial Markets Consulting's financial position?


Financial Position Analysis

Short Term Liabilities: AFM's short term assets (£52.3M) exceed its short term liabilities (£36.2M).

Long Term Liabilities: AFM's short term assets (£52.3M) exceed its long term liabilities (£11.9M).


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?

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFM's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: AFM's dividend (1.29%) is low compared to the top 25% of dividend payers in the UK market (4.1%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.1%), AFM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFM's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Euan N. Fraser

8.33yrs

Tenure

UK£583,000

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 ($USD823.13K) is about average for companies of similar size in the UK market ($USD723.24K).

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


Leadership Team

Experienced Management: AFM's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: AFM's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Alpha Financial Markets Consulting plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alpha Financial Markets Consulting plc
  • Ticker: AFM
  • Exchange: AIM
  • Founded: 2003
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£331.852m
  • Shares outstanding: 102.11m
  • Website: https://www.alphafmc.com

Number of Employees


Location

  • Alpha Financial Markets Consulting plc
  • 60 Gresham Street
  • London
  • Greater London
  • EC2V 7BB
  • United Kingdom

Listings


Biography

Alpha Financial Markets Consulting plc provides consulting services to the asset and wealth management industries in the United Kingdom, the United States, Europe, and Asia. The company offers services in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 18:13
End of Day Share Price2021/05/17 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.