Alfa Financial Software Holdings

ALFA.L

Software - Application · Technology

Price

168.20 GBp

+3.20 (+1.94%)

Market Cap

£500.0M

Exchange

London Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Exceptional

Growth

Strong

Cash Flow

Exceptional

Stability

Good

Valuation

Mixed

Dividends

Strong

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Share count falling — buybacks

−1.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 301.5M (2021) → 297.2M (2025)

Winston Score History

The full picture

Alfa Financial Software Holdings is a UK-based software company that makes a specialized platform for the asset finance industry. Asset finance is the business of leasing and lending money for physical things like cars, trucks, planes, and industrial equipment. Banks, car manufacturers, and large leasing companies use Alfa's software to manage millions of these contracts from start to finish.

Alfa earns money by charging customers to license its software and by providing implementation and support services. Most of its revenue comes from a relatively small number of large, long-term clients, which creates deep relationships but also concentration risk. The company operates globally, with clients across Europe, North America, and beyond, and its moat comes from how deeply embedded its platform becomes inside a customer's operations — switching to a rival is expensive and disruptive. The key risk is that its client base is narrow, meaning losing even one major customer could meaningfully hurt revenue.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+5.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

£3M/ year

↓ Declining (-10% vs prior year)

2.2% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

56.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£26M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Alfa Financial Software Holdings is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

60.4%

Premium pricing power — 60.4% gross margin

Profit after running costs

Operating Margin

29.1%

Excellent — 29.1% operating margin

Return on the money invested

ROCE

77.9%

Exceptional — 77.9% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+15.3%

Fast-growing sales (+15.3% YoY)

Profit growth

EPS YoY

+18.3%

Earnings growing fast (+18.3% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

125%

Turns 125% of profit into real cash

Spare cash per sale

FCF Margin

29.4%

Converts sales into free cash efficiently (29.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

57.57x

Comfortably covers interest (57.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

16.5x

Fair value — P/E 16.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-0.8

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

5.78%

Healthy income — 5.78% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+5.3%

Dividend growing modestly (5.3% YoY)

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