# Alfa Financial Software Holdings PLC (ALFA.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 160p, market value 476 millionp.

## Valuation
- **P/E (trailing): 17.8×** (5-yr avg 2282.2×, 3-yr avg 2132.8×). Alfa Financial Software Holdings PLC trades at 17.8× trailing earnings, well below its own five-year average of 2282.2×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 15.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.93**. A PEG of 0.93 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.0×**. Each dollar of revenue is priced at 2.0×.
- **Price / book: 9.2×**. The shares trade at 9.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 6.1×**. Enterprise value is 6.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 13.7%** (5-yr avg 0.1%). Free cash flow equals 13.7% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.6%**. The inverse of the P/E: 5.6% of the price is earned each year.

## Profitability
- **Gross margin: 63.3%**. Alfa Financial Software Holdings PLC keeps 63.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 31.5%**. 31.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 23.8%**. 23.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 58.2%**. A 58.2% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 161.9%**. Return on all capital, debt included, is 161.9%: comfortably above what that capital costs.
- **Return on assets: 61.4%**. Each dollar of assets produces 61.4% of profit.

## Growth
- **Revenue growth (1 yr): 15.3%** (3-yr 10.7%/yr, 5-yr 9.9%/yr). Revenue grew 15.3% over the last year, against 9.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 16.8%** (3-yr 7.2%/yr, 5-yr 8.1%/yr). Earnings per share rose 16.8%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 14.6%/yr**. Free cash flow has compounded at 14.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.18**. Debt is 0.18 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Alfa Financial Software Holdings PLC holds more cash than debt.
- **Interest coverage: 53.3×**. Operating profit covers interest 53.3× over, a safe margin.
- **Current ratio: 1.60** (quick 1.60). Current assets cover the next year's liabilities 1.60 times.
- **Altman Z-score: 11.23**. A Z-score of 11.23 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.93%** (0p per share, trailing). Alfa Financial Software Holdings PLC yields 0.93%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 86%** (83% of free cash flow). 86% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Dividend growth (5 yr): -10.1%/yr** (1-yr 17.3%). The dividend has not grown over five years.
- **Shareholder yield: 1.2%**. Dividends plus net buybacks return 1.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover Alfa Financial Software Holdings PLC; the consensus is strong_buy, with an average price target of 267p (+67% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -31.9%** (YTD -21.3%, 3-mo 5.4%). The shares are down 31.9% over twelve months including dividends.
- **From 52-week high: -36.4%** (14.0% above the low). Trading 36% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.39** (volatility 31%). Beta of 0.39 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ALFA.L · Page: https://foliofundamentals.com/stocks/alfa.l

Not investment advice.