LSE:ALFA

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Alfa Financial Software Holdings

Market Cap

UK£426.0m

Last Updated

2021/07/22 22:23 UTC

Data Sources

Company Financials +

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 internationally. More Details


Snowflake Analysis

Flawless balance sheet with outstanding 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: ALFA is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ALFA's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-5.0%

ALFA

1.0%

GB Software

-0.4%

GB Market


1 Year Return

76.4%

ALFA

5.7%

GB Software

16.6%

GB Market

Return vs Industry: ALFA exceeded the UK Software industry which returned 6.4% over the past year.

Return vs Market: ALFA exceeded the UK Market which returned 17% over the past year.


Shareholder returns

ALFAIndustryMarket
7 Day-5.0%1.0%-0.4%
30 Day17.4%4.5%-1.2%
90 Day2.9%1.4%0.7%
1 Year100.2%76.4%15.5%5.7%21.9%16.6%
3 Year0.3%-11.6%27.4%11.7%11.7%-1.1%
5 Yearn/a17.2%-6.6%40.1%13.1%

Long-Term 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

Valuation

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

20.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALFA (£1.42) is trading above our estimate of fair value (£0.53)

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


Price To Earnings Ratio

PE vs Industry: ALFA is good value based on its PE Ratio (20.5x) compared to the UK Software industry average (50.1x).

PE vs Market: ALFA is good value based on its PE Ratio (20.5x) compared to the UK market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: ALFA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALFA is overvalued based on its PB Ratio (7.1x) compared to the GB Software industry average (4.3x).


Future Growth

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

-26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALFA's earnings are forecast to decline over the next 3 years (-26.1% per year).

Earnings vs Market: ALFA's earnings are forecast to decline over the next 3 years (-26.1% per year).

High Growth Earnings: ALFA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALFA's revenue (0.2% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: ALFA's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALFA's Return on Equity is forecast to be low in 3 years time (13.8%).


Past Performance

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

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALFA has high quality earnings.

Growing Profit Margin: ALFA's current net profit margins (25.8%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: ALFA's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: ALFA's earnings growth over the past year (99.6%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: ALFA earnings growth over the past year (99.6%) exceeded the Software industry -7.3%.


Return on Equity

High ROE: ALFA's Return on Equity (33.8%) is considered high.


Financial Health

How is Alfa Financial Software Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ALFA's short term assets (£50.7M) exceed its short term liabilities (£18.1M).

Long Term Liabilities: ALFA's short term assets (£50.7M) exceed its long term liabilities (£17.2M).


Debt to Equity History and Analysis

Debt Level: ALFA is debt free.

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

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

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


Balance Sheet


Dividend

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

0.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALFA's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: ALFA's dividend (0.7%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

Stable Dividend: ALFA is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: ALFA is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALFA'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?

5.5yrs

Average management tenure


CEO

Andrew Denton (49 yo)

4.83yrs

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. He serves as Executive Director at Alfa Financial Software Ho...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Andrew's total compensation is reasonable compared to companies of similar size in the UK market.

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


Leadership Team

Experienced Management: ALFA's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: ALFA's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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.


Top Shareholders

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: ALFA
  • Exchange: LSE
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£426.000m
  • 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


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 Analysis2021/07/22 22:23
End of Day Share Price2021/07/22 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.