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AFM

Alpha Financial Markets Consulting AIM:AFM Stock Report

Last Price

UK£4.03

Market Cap

UK£458.7m

7D

3.2%

1Y

15.7%

Updated

23 Sep, 2022

Data

Company Financials +
AFM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends2/6

AFM Stock Overview

Alpha Financial Markets Consulting plc provides consulting and related services to the asset and wealth management, and insurance industries in the United Kingdom, North America, Europe, and Asia Pacific.

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 PriceUK£4.03
52 Week HighUK£4.96
52 Week LowUK£2.90
Beta1.2
1 Month Change-8.52%
3 Month Change9.52%
1 Year Change15.66%
3 Year Change93.51%
5 Year Changen/a
Change since IPO136.77%

Recent News & Updates

Sep 02
What Does Alpha Financial Markets Consulting plc's (LON:AFM) Share Price Indicate?

What Does Alpha Financial Markets Consulting plc's (LON:AFM) Share Price Indicate?

Alpha Financial Markets Consulting plc ( LON:AFM ), is not the largest company out there, but it saw a double-digit...

Aug 14
Alpha Financial Markets Consulting's (LON:AFM) Shareholders Will Receive A Bigger Dividend Than Last Year

Alpha Financial Markets Consulting's (LON:AFM) Shareholders Will Receive A Bigger Dividend Than Last Year

Alpha Financial Markets Consulting plc's ( LON:AFM ) dividend will be increasing from last year's payment of the same...

Jul 31
Alpha Financial Markets Consulting's (LON:AFM) Dividend Will Be Increased To £0.075

Alpha Financial Markets Consulting's (LON:AFM) Dividend Will Be Increased To £0.075

Alpha Financial Markets Consulting plc's ( LON:AFM ) dividend will be increasing from last year's payment of the same...

Shareholder Returns

AFMGB Professional ServicesGB Market
7D3.2%-1.9%-3.1%
1Y15.7%-14.0%-13.8%

Return vs Industry: AFM exceeded the UK Professional Services industry which returned -15.8% over the past year.

Return vs Market: AFM exceeded the UK Market which returned -12.9% over the past year.

Price Volatility

Is AFM's price volatile compared to industry and market?
AFM volatility
AFM Average Weekly Movement3.4%
Professional Services Industry Average Movement3.9%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: AFM is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AFM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003760Euan N. Fraserhttps://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, North America, Europe, and Asia Pacific. The company offers services in the areas of benchmarking, operations and outsourcing, mergers and acquisitions integrations, investments, regulatory compliance and risk, distribution, digital transformation, investment guidelines, fintech and innovation, ETF and indexing, pension and retail investments, ESG and responsible investments, and insurance. It serves asset and 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 CapUK£458.69m
Earnings (TTM)UK£8.51m
Revenue (TTM)UK£157.81m

53.9x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFM income statement (TTM)
RevenueUK£157.81m
Cost of RevenueUK£99.01m
Gross ProfitUK£58.80m
Other ExpensesUK£50.29m
EarningsUK£8.51m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.075
Gross Margin37.26%
Net Profit Margin5.39%
Debt/Equity Ratio0%

How did AFM perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

135%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AFM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AFM?

Other financial metrics that can be useful for relative valuation.

AFM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA16x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does AFM's PE Ratio compare to its peers?

AFM PE Ratio vs Peers
The above table shows the PE ratio for AFM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.8x
DWF DWF Group
12.9x18.6%UK£261.9m
ELIX Elixirr International
26.4x12.0%UK£309.4m
GTLY Gateley (Holdings)
17x8.4%UK£243.0m
SAG Science Group
19x7.2%UK£181.2m
AFM Alpha Financial Markets Consulting
53.9x27.3%UK£458.7m

Price-To-Earnings vs Peers: AFM is expensive based on its Price-To-Earnings Ratio (53.9x) compared to the peer average (18.8x).


Price to Earnings Ratio vs Industry

How does AFM's PE Ratio compare vs other companies in the GB Professional Services Industry?

Price-To-Earnings vs Industry: AFM is expensive based on its Price-To-Earnings Ratio (53.9x) compared to the UK Professional Services industry average (18.1x)


Price to Earnings Ratio vs Fair Ratio

What is AFM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AFM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.9x
Fair PE Ratio34.2x

Price-To-Earnings vs Fair Ratio: AFM is expensive based on its Price-To-Earnings Ratio (53.9x) compared to the estimated Fair Price-To-Earnings Ratio (34.2x).


Share Price vs Fair Value

What is the Fair Price of AFM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AFM (£4.03) is trading below our estimate of fair value (£5.57)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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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

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFM's forecast earnings growth (27.3% per year) is above the savings rate (0.9%).

Earnings vs Market: AFM's earnings (27.3% per year) are forecast to grow faster than the UK market (8.6% per year).

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

Revenue vs Market: AFM's revenue (8.6% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: AFM's revenue (8.6% 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 (20%).


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AFM has high quality earnings.

Growing Profit Margin: AFM's current net profit margins (5.4%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: AFM has become profitable over the past 5 years, growing earnings by 30.2% per year.

Accelerating Growth: AFM's earnings growth over the past year (46.1%) exceeds its 5-year average (30.2% per year).

Earnings vs Industry: AFM earnings growth over the past year (46.1%) underperformed the Professional Services industry 47%.


Return on Equity

High ROE: AFM's Return on Equity (6.4%) is considered low.


Discover strong past performing companies

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 (£93.1M) exceed its short term liabilities (£65.9M).

Long Term Liabilities: AFM's short term assets (£93.1M) exceed its long term liabilities (£30.7M).


Debt to Equity History and Analysis

Debt Level: AFM is debt free.

Reducing Debt: AFM currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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


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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

  • Cash Flow Coverage


2.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AFM's dividend (2.58%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: AFM's dividend (2.58%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


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 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (135.2%), AFM's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.1%), AFM's dividend payments are well covered by cash flows.


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Management

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

1.8yrs

Average management tenure


CEO

Euan N. Fraser

9.67yrs

Tenure

UK£868,000

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 ($USD948.96K) is about average for companies of similar size in the UK market ($USD1.07M).

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 not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AFM's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AFM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

AIM:AFM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 Jul 22SellUK£2,253,940Euan N. FraserIndividual563,485UK£4.00

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 84.18% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.91%
abrdn plc
12,427,922£50.0m2.43%0.06%
8.06%
Invesco Ltd.
9,187,745£37.0m53.15%0.01%
7.64%
Janus Henderson Group plc
8,710,539£35.1m1.16%0.02%
5.46%
Joh. Berenberg, Gossler & Co. KG, Asset Management Arm
6,218,633£25.0m2.15%0.91%
4.92%
M&G Investment Management Limited
5,604,533£22.6m-19.81%0.06%
4.2%
Gresham House Asset Management Limited
4,784,146£19.3m-17.35%2.33%
3.97%
N.F.U. Mutual Unit Managers Limited
4,523,516£18.2m0%0.51%
3.76%
Nordea Investment Management AB
4,279,488£17.2m-18.16%0.02%
3.33%
Chelverton Asset Management Limited
3,800,000£15.3m-2.99%0.89%
3.31%
Fidelity International Ltd
3,767,942£15.2m-34.73%0.01%
2.98%
River and Mercantile Asset Management LLP
3,400,000£13.7m-5.56%0.8%
2.94%
Royal London Asset Management Limited
3,350,000£13.5m-5.46%0.03%
2.88%
Schroder Investment Management Limited
3,282,934£13.2m3.05%0.01%
2.43%
Premier Fund Managers Limited
2,773,764£11.2m21.45%0.14%
2.37%
SVM Asset Management Limited
2,704,709£10.9m11.32%3.06%
2.11%
Investec Wealth & Investment Limited
2,399,450£9.7m422.24%0.09%
2.1%
Lazard Asset Management LLC
2,394,750£9.6m14.21%0.01%
2.01%
Allianz Asset Management AG
2,287,493£9.2m0%0.01%
1.99%
Danske Capital AS
2,271,622£9.1m-14.47%0.08%
1.72%
Artemis Investment Management LLP
1,956,118£7.9m-20.97%0.04%
1.37%
Jupiter Fund Management Plc
1,563,311£6.3m0%0.02%
1.22%
Unicorn Asset Management Limited
1,390,700£5.6m-4.09%0.61%
0.86%
Sarasin & Partners LLP
978,204£3.9m0%0.03%
0.85%
Handelsbanken Asset Management
965,000£3.9m-20.92%0.01%
0.8%
Close Asset Management Limited
912,876£3.7m49.17%0.05%

Company Information

Alpha Financial Markets Consulting plc's 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
  • Implied Market Cap: UK£458.692m
  • Shares outstanding: 113.96m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2017

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/23 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.