Loading...

Alfa Financial Software Holdings

LSE:ALFA
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ALFA
LSE
£339M
Market Cap
  1. Home
  2. GB
  3. Software
Company description

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 the Asia Pacific. The last earnings update was 117 days ago. More info.


Add to Portfolio Compare Print
  • Alfa Financial Software Holdings has significant price volatility in the past 3 months.
ALFA Share Price and Events
7 Day Returns
-5.8%
LSE:ALFA
-0.3%
GB Software
-0.1%
GB Market
1 Year Returns
-38%
LSE:ALFA
12.8%
GB Software
-2.6%
GB Market
ALFA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alfa Financial Software Holdings (ALFA) -5.8% -15.2% -25.7% -38% - -
GB Software -0.3% 2.1% 10.8% 12.8% 41.4% 90%
GB Market -0.1% 1.3% 2.5% -2.6% 16.5% 3.8%
1 Year Return vs Industry and Market
  • ALFA underperformed the Software industry which returned 12.8% over the past year.
  • ALFA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.6% over the past year.
Price Volatility
ALFA
Industry
5yr Volatility vs Market

Value

 Is Alfa Financial Software Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alfa Financial Software Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alfa Financial Software Holdings.

LSE:ALFA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:ALFA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.138 (1 + (1- 19%) (0%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.092 * 6.65%)
8.49%

Discounted Cash Flow Calculation for LSE:ALFA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alfa Financial Software Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:ALFA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.49%)
2019 16.50 Analyst x1 15.21
2020 18.50 Analyst x1 15.72
2021 18.69 Est @ 1.01% 14.63
2022 18.89 Est @ 1.08% 13.63
2023 19.10 Est @ 1.12% 12.71
2024 19.32 Est @ 1.15% 11.85
2025 19.55 Est @ 1.18% 11.05
2026 19.78 Est @ 1.19% 10.31
2027 20.02 Est @ 1.2% 9.61
2028 20.26 Est @ 1.21% 8.97
Present value of next 10 years cash flows £123.69
LSE:ALFA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £20.26 × (1 + 1.23%) ÷ (8.49% – 1.23%)
£282.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £282.36 ÷ (1 + 8.49%)10
£124.99
LSE:ALFA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £123.69 + £124.99
£248.69
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £248.69 / 300.00
£0.83
LSE:ALFA Discount to Share Price
Calculation Result
Value per share (GBP) From above. £0.83
Current discount Discount to share price of £1.13
= -1 x (£1.13 - £0.83) / £0.83
-36.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Alfa Financial Software Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alfa Financial Software Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alfa Financial Software Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:ALFA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.06
LSE:ALFA Share Price ** LSE (2019-06-25) in GBP £1.13
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 34 Publicly-Listed Software Companies 29.72x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.32x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alfa Financial Software Holdings.

LSE:ALFA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:ALFA Share Price ÷ EPS (both in GBP)

= 1.13 ÷ 0.06

17.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alfa Financial Software Holdings is good value based on earnings compared to the GB Software industry average.
  • Alfa Financial Software Holdings is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Alfa Financial Software Holdings's expected growth come at a high price?
Raw Data
LSE:ALFA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
6%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 24 Publicly-Listed Software Companies 1.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 577 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:ALFA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.8x ÷ 6%

2.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alfa Financial Software Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Alfa Financial Software Holdings's assets?
Raw Data
LSE:ALFA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.24
LSE:ALFA Share Price * LSE (2019-06-25) in GBP £1.13
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 74 Publicly-Listed Software Companies 2.82x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,372 Publicly-Listed Companies 1.48x
LSE:ALFA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:ALFA Share Price ÷ Book Value per Share (both in GBP)

= 1.13 ÷ 0.24

4.65x

* Primary Listing of Alfa Financial Software Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alfa Financial Software Holdings is overvalued based on assets compared to the GB Software industry average.
X
Value checks
We assess Alfa Financial Software Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Alfa Financial Software Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Alfa Financial Software Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alfa Financial Software Holdings expected to grow at an attractive rate?
  • Alfa Financial Software Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Alfa Financial Software Holdings's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Alfa Financial Software Holdings's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:ALFA Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:ALFA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6%
LSE:ALFA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.5%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 19%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:ALFA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:ALFA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 82 1
2022-12-31 80 21 1
2021-12-31 82 29 23 4
2020-12-31 78 26 21 4
2019-12-31 74 23 19 4
LSE:ALFA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 71 15 18
2018-09-30 73 16 20
2018-06-30 76 17 22
2018-03-31 82 18 24
2017-12-31 88 19 26
2017-09-30 89 19 18
2017-06-30 90 19 11
2017-03-31 81 25 9
2016-12-31 73 32 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alfa Financial Software Holdings's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
  • Alfa Financial Software Holdings's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:ALFA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Alfa Financial Software Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ALFA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.08 0.08 0.07 4.00
2020-12-31 0.07 0.07 0.07 4.00
2019-12-31 0.06 0.07 0.06 4.00
LSE:ALFA Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.06
2018-09-30 0.07
2018-06-30 0.08
2018-03-31 0.09
2017-12-31 0.09
2017-09-30 0.06
2017-06-30 0.04
2017-03-31 0.03
2016-12-31 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Alfa Financial Software Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Alfa Financial Software Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alfa Financial Software Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alfa Financial Software Holdings's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alfa Financial Software Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Alfa Financial Software Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Alfa Financial Software Holdings's 1-year earnings growth is negative, it can't be compared to the GB Software industry average.
Earnings and Revenue History
Alfa Financial Software Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alfa Financial Software Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ALFA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 71.04 18.15 13.46 16.34
2018-09-30 73.28 20.30 12.55 15.77
2018-06-30 75.52 22.44 16.04 15.19
2018-03-31 81.65 24.15 17.56 14.58
2017-12-31 87.78 25.87 14.68 13.96
2017-09-30 88.74 18.24 23.81 14.62
2017-06-30 89.70 10.62 32.94 15.27
2017-03-31 81.49 9.24 29.65 14.46
2016-12-31 73.28 7.87 26.37 13.64
2015-12-31 54.04 14.66 8.09 9.80
2014-12-31 43.29 11.27 6.84 7.06

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Alfa Financial Software Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Alfa Financial Software Holdings used its assets more efficiently than the GB Software industry average last year based on Return on Assets.
  • Alfa Financial Software Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alfa Financial Software Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alfa Financial Software Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alfa Financial Software Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alfa Financial Software Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alfa Financial Software Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alfa Financial Software Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alfa Financial Software Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Alfa Financial Software Holdings has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alfa Financial Software Holdings Company Filings, last reported 5 months ago.

LSE:ALFA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 72.92 0.00 44.92
2018-09-30 72.92 0.00 44.92
2018-06-30 61.05 0.00 36.33
2018-03-31 61.05 0.00 36.33
2017-12-31 54.12 0.00 31.38
2017-09-30 54.12 0.00 31.38
2017-06-30 38.40 0.00 20.50
2017-03-31 38.40 0.00 20.50
2016-12-31 84.60 0.00 46.27
2015-12-31 62.79 0.00 34.09
2014-12-31 44.41 0.00 27.03
  • Alfa Financial Software Holdings has no debt.
  • Alfa Financial Software Holdings has not taken on any debt in the past 5 years.
  • Alfa Financial Software Holdings has no debt, it does not need to be covered by operating cash flow.
  • Alfa Financial Software Holdings has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Alfa Financial Software Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alfa Financial Software Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Alfa Financial Software Holdings dividends. Estimated to be 0% next year.
If you bought £2,000 of Alfa Financial Software Holdings shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Alfa Financial Software Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Alfa Financial Software Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:ALFA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:ALFA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Alfa Financial Software Holdings has not reported any payouts.
  • Unable to verify if Alfa Financial Software Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Alfa Financial Software Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alfa Financial Software Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Alfa Financial Software Holdings's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Alfa Financial Software Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alfa Financial Software Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alfa Financial Software Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Alfa Financial Software Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Denton
COMPENSATION £338,000
AGE 46
TENURE AS CEO 2.8 years
CEO Bio

Mr. Andrew Denton has been the Chief Executive Officer of Alfa Financial Software Holdings PLC and CHP Consulting Limited since September 2016. Mr. Denton served as Chief Operating Officer at Alfa Financial Software Ltd. Mr. Denton is responsible for the marketing of CHP Consulting's ALFA Systems worldwide and is directing the ALFA Systems campaigns across North America. He serves as the Chief Operating Officer of CHP Consulting, Inc. He served as the Chief Operating Officer of CHP Consulting Limited from 2014 to September 2016. Mr. Denton has been with CHP Consulting, Inc., for 13 years, working on and leading projects for a number of its clients including Dresdner Bank, HBOS, HSBC, ING, National Australia Bank, Royal Bank of Scotland and Société Générale. Earlier in his career, Mr. Denton worked for Schlumberger, specializing in business process improvement programs. He served as the Chief Marketing Officer of CHP Consulting, Inc. He joined Alfa in 1995 and served as its Sales and Marketing Director from January 2003 to November 2010, Chief Operating Officer from November 2010 to September 2016 and Consultant from September 1995 to January 2003. He was a Graduate of Information Technology at Schlumberger Electricity from January 1990 to January 1995. He has been a Director of Alfa Financial Software Holdings PLC and CHP Consulting Limited since 2003. He serves as a Director of CHP Software and Consulting Limited, Leasing Philanthropic and Research Foundation Limited. He co-founded the Leasing Foundation in July 2012 and served as its Chief Executive Officer from July 2013 to March 2017. He has been a Director of Leasing Foundation since July 2012. He was a Trustee of Cancer Journey from January 2009 to December 2010. He is a frequent Speaker on leasing industry matters, having presented at Alta Group, Equipment Leasing and Finance Association, Euromoney, Leasing Life, Motor Finance and UK Finance and Leasing Association conferences. He is an author of leasing process improvement and technology articles for various industry journals. He studied at Orwell high School from 1980 to 1990. He received a Degree in Computing/Business from Brunel University in England from 1990 to 1994. He studied at Orwell high School from 1980 to 1990.

CEO Compensation
  • Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andrew's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Alfa Financial Software Holdings management team in years:

3.4
Average Tenure
44.5
Average Age
  • The tenure for the Alfa Financial Software Holdings management team is about average.
Management Team

Andrew Page

TITLE
Executive Chairman of the Board
COMPENSATION
£438K
AGE
55

Andrew Denton

TITLE
CEO & Director
COMPENSATION
£338K
AGE
46
TENURE
2.8 yrs

Matthew White

TITLE
Chief Operating Officer
TENURE
3.4 yrs

Ralph Neuff

TITLE
Chief Information Officer
AGE
43
TENURE
3.4 yrs

Steve Taplin

TITLE
Global Sales & Marketing Director
TENURE
9.4 yrs

Lucy Matthews

TITLE
Chief People Officer

Mike Mayes

TITLE
Chief Commercial Officer
AGE
39
TENURE
17.4 yrs

Matthew Phillips

TITLE
Head of Australian Operations
Board of Directors Tenure

Average tenure and age of the Alfa Financial Software Holdings board of directors in years:

2.4
Average Tenure
58
Average Age
  • The average tenure for the Alfa Financial Software Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Andrew Page

TITLE
Executive Chairman of the Board
COMPENSATION
£438K
AGE
55
TENURE
2.8 yrs

Andrew Denton

TITLE
CEO & Director
COMPENSATION
£338K
AGE
46
TENURE
16.4 yrs

Karen Slatford

TITLE
Senior Independent Director
COMPENSATION
£65K
AGE
61
TENURE
0.2 yrs

Robin Taylor

TITLE
Independent Non-Executive Director
COMPENSATION
£65K
AGE
67
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Alfa Financial Software Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alfa Financial Software Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Alfa Financial Software Holdings PLC (LON:ALFA) Delivered A Better ROE Than Its Industry

See our latest analysis for Alfa Financial Software Holdings How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Alfa Financial Software Holdings: 25% = UK£18m ÷ UK£73m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Alfa Financial Software Holdings's Debt And Its 25% Return On Equity One positive for shareholders is that Alfa Financial Software Holdings does not have any net debt!

Simply Wall St -

Does Alfa Financial Software Holdings PLC (LON:ALFA) Have A Particularly Volatile Share Price?

If you own shares in Alfa Financial Software Holdings PLC (LON:ALFA) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. … If this beta value holds true in the future, Alfa Financial Software Holdings shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … Alfa Financial Software Holdings is a small cap stock with a market capitalisation of UK£400m.

Simply Wall St -

Is Alfa Financial Software Holdings PLC (LON:ALFA) Worth UK£1.28 Based On Its Intrinsic Value?

How far off is Alfa Financial Software Holdings PLC (LON:ALFA) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

Is Alfa Financial Software Holdings PLC's (LON:ALFA) P/E Ratio Really That Good?

We'll look at Alfa Financial Software Holdings PLC's (LON:ALFA) P/E ratio and reflect on what it tells us about the company's share price. … Looking at earnings over the last twelve months, Alfa Financial Software Holdings has a P/E ratio of 21.74. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Should Investors Know About Alfa Financial Software Holdings PLC's (LON:ALFA) Long Term Outlook?

In December 2018, Alfa Financial Software Holdings PLC (LON:ALFA) announced its most recent earnings update, whicha

Simply Wall St -

Alfa Financial Software Holdings PLC (LON:ALFA) Delivered A Better ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … To keep the lesson grounded in practicality, we'll use ROE to better understand Alfa Financial Software Holdings PLC (LON:ALFA). … Our data shows Alfa Financial Software Holdings has a return on equity of 25% for the last year.

Simply Wall St -

The Alfa Financial Software Holdings Share Price Is Down 75% So Some Shareholders Are Rather Upset

So spare a thought for the long term shareholders of Alfa Financial Software Holdings PLC (LON:ALFA); the share price is down a whopping 75% in the last twelve months. … Unfortunately the share price momentum is still quite negative, with prices down 14% in thirty days. … Even though the Alfa Financial Software Holdings share price is down over the year, its EPS actually improved.

Simply Wall St -

Alfa Financial Software Holdings PLC (LON:ALFA) Is Employing Capital Very Effectively

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Does Alfa Financial Software Holdings PLC (LON:ALFA) Have A Good P/E Ratio?

We'll show how you can use Alfa Financial Software Holdings PLC's (LON:ALFA) P/E ratio to inform your assessment of the investment opportunity. … Alfa Financial Software Holdings has a price to earnings ratio of 16.34, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Alfa Financial Software Holdings PLC (LON:ALFA): Commentary On Fundamentals

Today I've chosen to put the spotlight on Alfa Financial Software Holdings PLC (LON:ALFA) due to its excellent fundamentals in more than one area. … is a company with great financial health as well as a. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Company Info

Description

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 the Asia Pacific. It provides Alfa Systems, a software platform to administer retail and corporate businesses from point of sale through originations to contract management and remarketing; and Alfa Digital platform and apps suite, an omnichannel digital solution that delivers concepts, such as self-serve, customer onboarding, and mobility, as well as point of sale functionality across various devices. The company also offers professional services, such as business process consultancy, UI design, cloud hosting, project management, and training consultancy. It primarily serves equipment and automotive finance markets. The company was founded in 1990 and is headquartered in London, the United Kingdom. Alfa Financial Software Holdings PLC is a subsidiary of CHP Software and Consulting Limited.

Details
Name: Alfa Financial Software Holdings PLC
ALFA
Exchange: LSE
Founded: 1990
£339,000,000
300,000,000
Website: http://www.alfasystems.com
Address: Alfa Financial Software Holdings PLC
Moor Place,
1 Fore Street Avenue,
London,
Greater London, EC2Y 9DT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE ALFA Ordinary Shares London Stock Exchange GB GBP 26. May 2017
OTCPK AFLQ.F Ordinary Shares Pink Sheets LLC US USD 26. May 2017
DB A9F Ordinary Shares Deutsche Boerse AG DE EUR 26. May 2017
BATS-CHIXE ALFAL Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. May 2017
Number of employees
Current staff
Staff numbers
312
Alfa Financial Software Holdings employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 03:54
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.