What is Alfa Financial Software Holdings Net Margin %?
Alfa Financial Software HoldingsLSE:ALFA -1.05%82 Net Margin % is 22.12% as of Dec. 2025, which is 6% below its 10-year median of 23.53. GuruFocus rates LSE:ALFA with a GF Score™ of 82/100 and a GF Value™ of £2.38 (Significantly Undervalued). Among 2,827 Software companies, Alfa Financial Software Holdings ranks better than 92.71% on this metric.
The historical rank and industry rank for Alfa Financial Software Holdings's Net Margin % or its related term are showing as below:
LSE:ALFA'
s Net Margin % Range Over the Past 10 Years
Min: 10.74 Med: 23.53 Max: 29.47
Current: 23.76
LSE:ALFA's Net Margin % is ranked better than 92.71% of 2827
companies
in the Software industry
Industry Median: 2.54
vs LSE:ALFA: 23.76
Alfa Financial Software Holdings (LSE:ALFA) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Alfa Financial Software Holdings Net Margin % Related Terms
Alfa Financial Software Holdings Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alfa Financial Software Holdings Net Margin % Chart
LSE:ALFA vs CRM, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, Alfa Financial Software Holdings's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alfa Financial Software Holdings Net Margin % vs Software Industry
For the Software industry and Technology sector, Alfa Financial Software Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Alfa Financial Software Holdings's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alfa Financial Software Holdings (LSE:ALFA) has a Net Margin % of 22.12% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Alfa Financial Software Holdings and its competitors. This is near median its historical median of 23.53. Over the past decade, Alfa Financial Software Holdings' Net Margin % has ranged from 10.74 to 29.47. According to the industry distribution chart, Alfa Financial Software Holdings ranks #206 out of 2827 companies in the Software industry, placing it in the top 7.3%.
Is Alfa Financial Software Holdings' Net Margin % too high?
Alfa Financial Software Holdings' current Net Margin % of 22.12% is near median its 10-year median of 23.53. Over the past 10 years, this metric has ranged from a low of 10.74 to a high of 29.47. The Software industry median Net Margin % is 2.54. Alfa Financial Software Holdings' value of 22.12% is 770.9% above this industry median. Based on the distribution chart, Alfa Financial Software Holdings ranks #206 out of 2827 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Alfa Financial Software Holdings has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alfa Financial Software Holdings' Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Alfa Financial Software Holdings ranks #206 out of 2827 companies for Net Margin %. This places Alfa Financial Software Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Alfa Financial Software Holdings' value of 22.12% is 770.9% above this benchmark. Historically, Alfa Financial Software Holdings' own Net Margin % has ranged from 10.74 to 29.47 over the past decade. While the company's 10-year median is 23.53 vs. the industry median of 2.54, Alfa Financial Software Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alfa Financial Software Holdings's current Net Margin % of 22.12% is 770.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Alfa Financial Software Holdings and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alfa Financial Software Holdings's current Net Margin % is 22.12%, which is near median its own 10-year median of 23.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alfa Financial Software Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alfa Financial Software Holdings (LSE:ALFA) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.38, compared to a current price of £1.51 — trading 36.4% below its estimated fair value. The current Net Margin % is 22.12%, which is near median its 10-year median of 23.53 and 770.9% above the Software industry median of 2.54. Alfa Financial Software Holdings' overall GF Score™ is 82/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Alfa Financial Software Holdings (LSE:ALFA), the current Net Margin % is 22.12% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alfa Financial Software Holdings (LSE:ALFA) Overvalued in 2026?
Based on GuruFocus' analysis, Alfa Financial Software Holdings stock appears to be undervalued.
The current stock price of £1.51 is trading 36.4% below its estimated GF Value™ of £2.38.
GuruFocus considers Alfa Financial Software Holdings to be Significantly Undervalued.
Key valuation signals for LSE:ALFA:
Net Margin %: 22.12% (near median its 10-year median of 23.53)
GF Value™: £2.38 vs. price of £1.51 (36.4% below fair value)
Industry Position: 770.9% above the Software median (#206 of 2827)
No single metric tells the full story. See the LSE:ALFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alfa Financial Software Holdings Business Description
Alfa Financial Software Holdings PLC is principally engaged in the provision of software and software-related services to the auto and equipment finance industry. Alfa Systems, its technology platform, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, including leases/loans, originations, and servicing. The company has one operating and reporting segment, being the sale of software and related services. It generates the majority of its revenue from the EMEA and Americas and the rest from other regions.
82GF Score
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