AIM:AFX

Stock Analysis Report

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Executive Summary

Alpha FX Group plc provides foreign exchange services in the United Kingdom and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Alpha FX Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.6%

AFX

0.3%

GB Capital Markets

1.8%

GB Market


1 Year Return

3.9%

AFX

11.9%

GB Capital Markets

-12.2%

GB Market

Return vs Industry: AFX underperformed the UK Capital Markets industry which returned 12.1% over the past year.

Return vs Market: AFX exceeded the UK Market which returned -14.4% over the past year.


Shareholder returns

AFXIndustryMarket
7 Day2.6%0.3%1.8%
30 Day10.5%8.7%6.5%
90 Day-30.7%2.2%-9.9%
1 Year4.2%3.9%14.5%11.9%-8.0%-12.2%
3 Year86.8%82.7%60.8%49.3%-5.6%-17.2%
5 Yearn/a126.4%101.0%11.2%-13.7%

Price Volatility Vs. Market

How volatile is Alpha FX Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alpha FX Group undervalued compared to its fair value and its price relative to the market?

26.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFX (£7.9) is trading above our estimate of fair value (£4.07)

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


Price To Earnings Ratio

PE vs Industry: AFX is poor value based on its PE Ratio (26.5x) compared to the Capital Markets industry average (14.9x).

PE vs Market: AFX is poor value based on its PE Ratio (26.5x) compared to the UK market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AFX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AFX is overvalued based on its PB Ratio (5.3x) compared to the GB Capital Markets industry average (1.5x).


Next Steps

Future Growth

How is Alpha FX Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

13.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AFX's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if AFX's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: AFX's revenue (13.3% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: AFX's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AFX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alpha FX Group performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFX has high quality earnings.

Growing Profit Margin: AFX's current net profit margins (31.1%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: AFX's earnings have grown significantly by 38.5% per year over the past 5 years.

Accelerating Growth: AFX's earnings growth over the past year (40.9%) exceeds its 5-year average (38.5% per year).

Earnings vs Industry: AFX earnings growth over the past year (40.9%) exceeded the Capital Markets industry 16.4%.


Return on Equity

High ROE: AFX's Return on Equity (19.1%) is considered low.


Next Steps

Financial Health

How is Alpha FX Group's financial position?


Financial Position Analysis

Short Term Liabilities: AFX's short term assets (£123.3M) exceed its short term liabilities (£69.0M).

Long Term Liabilities: AFX's short term assets (£123.3M) exceed its long term liabilities (£7.9M).


Debt to Equity History and Analysis

Debt Level: AFX is debt free.

Reducing Debt: AFX has no debt compared to 5 years ago when its debt to equity ratio was 105.1%.

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

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


Balance Sheet


Next Steps

Dividend

What is Alpha FX Group's current dividend yield, its reliability and sustainability?

0.58%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: AFX is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.2yrs

Average board tenure


CEO

Morgan Tillbrook (36yo)

no data

Tenure

UK£402,751

Compensation

Mr. Morgan J. Tillbrook Founded Alpha FX Group PLC in 2009 serves as Chief Executive Officer and Director since May 24, 2010. Mr. Tillbrook has been instrumental in the expansion of the Alpha FX Group and  ...


CEO Compensation Analysis

Compensation vs Market: Morgan's total compensation ($USD492.21K) is below average for companies of similar size in the UK market ($USD931.33K).

Compensation vs Earnings: Morgan's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Morgan Tillbrook
Founderno dataUK£402.75k26.3% £77.1m
Timothy Kidd
CFO, Company Secretary & Director3.5yrsUK£223.24k0.28% £812.2k
Henry Lisney
COO & Director2.17yrsUK£350.40k3.05% £8.9m
Clive Kahn
Independent Non-Executive Chairman3.08yrsUK£30.00k1.11% £3.3m
Lisa Gordon
Independent Non-Executive Director3.25yrsUK£45.42kno data
Matthew Knowles
Independent Non-Executive Director1.58yrsUK£45.71kno data

3.2yrs

Average Tenure

48.5yo

Average Age

Experienced Board: AFX's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AFX 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 FX Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alpha FX Group plc
  • Ticker: AFX
  • Exchange: AIM
  • Founded: 2009
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: UK£293.279m
  • Shares outstanding: 37.12m
  • Website: https://www.alphafx.co.uk

Number of Employees


Location

  • Alpha FX Group plc
  • Brunel Building
  • 2 Canalside Walk
  • London
  • Greater London
  • W2 1DG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2017

Biography

Alpha FX Group plc provides foreign exchange services in the United Kingdom and internationally. Its activities comprise initial design and implementation of hedging strategies, as well as ongoing management and monitoring of currency risks. The company sells forward currency contracts, foreign exchange spot transactions, payments and collections, and option contracts. It serves corporates and institutions that are exposed to currency market volatility. The company was formerly known as Alpha Capital Limited. Alpha FX Group PLC was founded in 2009 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 02:37
End of Day Share Price2020/05/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.