LSE:ALFA

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Alfa Financial Software Holdings

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 and overvalued.


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 not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ALFA's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

ALFA

-0.5%

GB Software

1.3%

GB Market


1 Year Return

23.1%

ALFA

-11.9%

GB Software

-6.4%

GB Market

Return vs Industry: ALFA exceeded the UK Software industry which returned -12.4% over the past year.

Return vs Market: ALFA exceeded the UK Market which returned -6.8% over the past year.


Shareholder returns

ALFAIndustryMarket
7 Day2.1%-0.5%1.3%
30 Day-2.3%-3.3%14.1%
90 Day36.5%-12.9%9.6%
1 Year38.6%23.1%-6.6%-11.9%-2.7%-6.4%
3 Year-70.0%-73.3%-27.6%-36.4%3.9%-8.6%
5 Yearn/a15.8%-4.3%34.6%4.4%

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?

26.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALFA (£1.28) is trading above our estimate of fair value (£0.21)

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 (26.8x) compared to the GB Software industry average (39x).

PE vs Market: ALFA is poor value based on its PE Ratio (26.8x) compared to the UK market (21.3x).


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 (4.1x) compared to the GB Software industry average (3.8x).


Next Steps

Future Growth

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

-14.8%

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 (-14.8% per year).

Earnings vs Market: ALFA's earnings are forecast to decline over the next 3 years (-14.8% per year).

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

Revenue vs Market: ALFA's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: ALFA's revenue is forecast to decline over the next 3 years (-1.5% 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 (11.9%).


Next Steps

Past Performance

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

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALFA has high quality earnings.

Growing Profit Margin: ALFA's current net profit margins (19.5%) are lower than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: ALFA's earnings have declined by 0.1% per year over the past 5 years.

Accelerating Growth: ALFA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALFA had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Software industry average (-3.2%).


Return on Equity

High ROE: ALFA's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is Alfa Financial Software Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ALFA's short term assets (£88.6M) exceed its short term liabilities (£24.6M).

Long Term Liabilities: ALFA's short term assets (£88.6M) exceed its long term liabilities (£17.3M).


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


Next Steps

Dividend

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

3.35%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ALFA'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 ALFA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


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?

4.9yrs

Average management tenure


CEO

Andrew Denton (48 yo)

4.25yrs

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: Andrew's total compensation ($USD450.96K) is below average for companies of similar size in the UK market ($USD869.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Denton
CEO & Director4.25yrsUK£338.00k0.0035%
£ 13.6k
Matthew White
COO & Executive Director1.17yrsUK£223.80k0.092%
£ 359.0k
Duncan Magrath
CFO & Director0.67yrno data0.033%
£ 130.0k
Andrew Flegg
Chief Technology Officerno datano datano data
Ralph Neuff
Chief Information Officer4.92yrsno datano data
Steve Taplin
Global Sales & Marketing Director10.92yrsno datano data
Vicky Edwards
Chief People Officer0.75yrno datano data
Michael Mayes
Chief Commercial Officer18.92yrsno datano data
Matthew Phillips
Head of Australian Operationsno datano datano data
Richard Raistrick
Chief International Officerno datano datano data
James Paul
Chief Delivery Officerno datano datano data
Richard Dewire
Chief Revenue Officerno datano datano data

4.9yrs

Average Tenure

46.5yo

Average Age

Experienced Management: ALFA's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Denton
CEO & Director4.25yrsUK£338.00k0.0035%
£ 13.6k
Matthew White
COO & Executive Director1.17yrsUK£223.80k0.092%
£ 359.0k
Duncan Magrath
CFO & Director0.67yrno data0.033%
£ 130.0k
Stephen Breach
Independent Non-executive Director1.33yrsUK£45.00k0.015%
£ 57.2k
Adrian Chamberlain
Independent & Non-Executive Directors0.75yrno datano data
Christopher Sullivan
Senior Independent Non-Executive Directorno dataUK£30.00kno data
Andrew Page
Executive Chairman of the Board & Founderno dataUK£388.00kno data
Charlotte Metz
Independent & Non-Executive Directors0.75yrno datano data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Board: ALFA's board of directors are not considered experienced ( 1 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£390.000m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALFALSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2017
ALFALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2017
A9FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2017

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 Analysis2020/12/02 18:42
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
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.