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Alfa Financial Software plc
(LSE:ALFA)
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Rating:78Outperform
Price Target:
188.00 p
▲(12.17% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance—high and resilient profitability, low leverage with very high ROE, and excellent cash generation (notably stronger in 2025). Valuation is supportive with a moderate P/E and a high dividend yield. The main offset is a mixed technical picture, with improving short-term trend but the stock still below its 200-day moving average and only neutral momentum readings.
Positive Factors
Strong cash generation
A material step-up in 2025 operating and free cash flow signals durable internal funding for reinvestment, product development, and shareholder returns. Robust cash conversion from operating earnings reduces reliance on external financing and strengthens strategic optionality over the next 2–6 months.
Negative Factors
Growth deceleration
A slowing top-line trend reduces the base for future margin expansion and cash flow growth. If new customer wins or module expansion don't accelerate, revenue deceleration could constrain operating leverage and make sustaining dividend or reinvestment targets harder over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
A material step-up in 2025 operating and free cash flow signals durable internal funding for reinvestment, product development, and shareholder returns. Robust cash conversion from operating earnings reduces reliance on external financing and strengthens strategic optionality over the next 2–6 months.
Read all positive factors
Alfa Financial Software plc (ALFA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£491.78M
Dividend Yield5.82%
Average Volume (3M)642.71K
Price to Earnings (P/E)17.6
Beta (1Y)0.44
Revenue Growth7.66%
EPS Growth-6.78%
CountryUK
Employees502
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding298,589,800
10 Day Avg. Volume882,814
30 Day Avg. Volume642,714
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)12.13
Price to Sales (P/S)4.95
P/FCF Ratio16.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£235.00Price Target Upside40.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)£134.57M
Alfa Financial Software plc Business Overview & Revenue Model
Company Description
Alfa Financial Software Holdings PLC, through its various subsidiaries, is a global provider of specialized software platforms and professional advisory services tailored for the asset finance industry. Operating across the United Kingdom, United ...
How the Company Makes Money
ALFA primarily makes money by licensing its enterprise software and providing related services to customers in the asset and automotive finance and leasing sector. Key revenue streams include: (1) Software licensing fees for the use of its core pl...
Alfa Financial Software plc Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.30M | 126.70M | 109.90M | 102.00M | 93.30M | 83.20M |
| Gross Profit | 76.00M | 77.40M | 70.90M | 63.70M | 56.90M | 51.10M |
| EBITDA | 41.00M | 42.20M | 37.50M | 32.90M | 32.50M | 27.70M |
| Net Income | 27.70M | 30.10M | 25.60M | 23.50M | 24.50M | 19.20M |
Balance Sheet | ||||||
| Total Assets | 90.20M | 90.70M | 84.70M | 75.10M | 76.50M | 84.00M |
| Cash, Cash Equivalents and Short-Term Investments | 22.20M | 26.40M | 20.50M | 21.80M | 18.70M | 23.10M |
| Total Debt | 9.00M | 9.30M | 9.30M | 8.20M | 9.30M | 17.10M |
| Total Liabilities | 38.40M | 39.00M | 38.50M | 33.10M | 34.50M | 40.60M |
| Stockholders Equity | 51.80M | 51.70M | 46.20M | 42.00M | 42.00M | 43.40M |
Cash Flow | ||||||
| Free Cash Flow | 32.30M | 37.50M | 22.80M | 28.80M | 24.90M | 25.40M |
| Operating Cash Flow | 32.70M | 37.90M | 28.40M | 32.20M | 27.20M | 26.70M |
| Investing Cash Flow | -5.60M | -5.40M | -5.40M | -3.10M | -2.30M | -1.30M |
| Financing Cash Flow | -28.80M | -26.40M | -24.10M | -25.80M | -29.70M | -39.20M |
Alfa Financial Software plc Technical Analysis
Neutral
167.60
Price Trends
163.18
Positive
158.64
Positive
174.16
Negative
Market Momentum
1.11
Positive
49.94
Neutral
51.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALFA, the sentiment is Neutral. The current price of 167.6 is above the 20-day moving average (MA) of 165.27, above the 50-day MA of 163.18, and below the 200-day MA of 174.16, indicating a neutral trend. The MACD of 1.11 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 51.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ALFA.
Alfa Financial Software plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £491.78M | 17.65 | 53.53% | 5.82% | 7.66% | -6.78% | |
77 Outperform | £9.45B | 25.65 | 81.91% | 2.14% | 8.75% | 15.70% | |
68 Neutral | £197.04M | 80.77 | 5.22% | 0.81% | 19.00% | -53.85% | |
63 Neutral | £119.95M | 29.89 | 7.38% | 2.45% | -7.27% | -15.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | £57.99M | -26.88 | -3.09% | 3.80% | 5.73% | -5.65% | |
54 Neutral | £364.51M | -4.95 | -14.39% | 2.76% | 0.82% | -997.08% |
* Technology Sector Average
GB:ALFA
Alfa Financial Software plc
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Alfa Financial Software plc Corporate Events
Regulatory Filings and Compliance
Alfa Financial Non-Executive Director Sells 200,000 Shares
Neutral
Aug 4, 2026
Alfa Financial Software Holdings PLC has disclosed a share transaction involving non-executive director Christopher Sullivan, in line with EU Market Abuse Regulation requirements. Sullivan sold a total of 200,000 ordinary shares of £0.001 eac...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Alfa Financial Software grants long-term share award to incoming CFO
Positive
Aug 3, 2026
Alfa Financial Software Holdings plc has granted a new conditional share award under its 2017 Long Term Incentive Plan to Chief Financial Officer designate Andrew Dickson. The 2026 Award covers 122,007 ordinary shares, granted on 31 July 2026, wit...
Business Operations and StrategyRegulatory Filings and Compliance
Alfa Financial Software Updates Share Voting Rights and Capital Structure
Positive
Jul 31, 2026
Alfa Financial Software Holdings PLC has confirmed its total voting rights as at 31 July 2026, reporting issued ordinary share capital of 300,000,000 shares, of which 1,410,177 are held in treasury and carry no voting rights. This leaves 298,589,8...
Business Operations and StrategyFinancial Disclosures
Alfa Financial Software lifts H1 revenue and contract value on new asset finance wins
Positive
Jul 30, 2026
Alfa Financial Software Holdings reported first-half revenue of £65.1m, up 4% year-on-year, with Q2 revenue rising 6% as stronger software engineering work for new implementations offset delays in delivery projects. Subscription revenue grew ...
Regulatory Filings and Compliance
Alfa Financial Software updates total voting rights following treasury share holdings
Neutral
Jun 30, 2026
Alfa Financial Software Holdings PLC, a specialist in asset finance and leasing technology, delivers its Alfa Systems SaaS platform to major lenders worldwide, enabling complex portfolio management and operational efficiency across multiple region...
Business Operations and StrategyExecutive/Board Changes
Alfa CFO Duncan Magrath Takes Audit Chair Role at Bango
Positive
Jun 26, 2026
Alfa Financial Software Holdings PLC, a specialist in software for the global asset finance and leasing industry, provides its Alfa Systems SaaS platform to automotive, equipment, wholesale and commercial finance providers worldwide. The system de...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.