Alfa Financial Software Holdings (CHIX:ALFAL) Operating Income: £40.1 Mil (TTM As of Dec. 2025)


CHIX:ALFAL Alfa Financial Software Holdings PLC CHIX:ALFAL
82 GF Score
Price £1.58
GF Value £2.40
Valuation Significantly Undervalued
View Full Analysis

What is Alfa Financial Software Holdings Operating Income?

Alfa Financial Software Holdings CHIX:ALFAL +1.41% 82 Operating Income is £40.1 Mil as of Dec. 2025. GuruFocus rates CHIX:ALFAL with a GF Score™ of 82/100 and a GF Value™ of £2.40 (Significantly Undervalued).

Alfa Financial Software Holdings's Operating Income for the six months ended in Dec. 2025 was £18.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £40.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Alfa Financial Software Holdings's Operating Income for the six months ended in Dec. 2025 was £18.5 Mil. Alfa Financial Software Holdings's Revenue for the six months ended in Dec. 2025 was £64.2 Mil. Therefore, Alfa Financial Software Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was 28.82%.

Good Sign:

Alfa Financial Software Holdings PLC operating margin is expanding. Margin expansion is usually a good sign.

Alfa Financial Software Holdings's 5-Year average Growth Rate for Operating Margin % was 0.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Alfa Financial Software Holdings's annualized ROC % for the quarter that ended in Dec. 2025 was 45.78%. Alfa Financial Software Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 494.12%.

Alfa Financial Software Holdings  (CHIX:ALFAl) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Alfa Financial Software Holdings's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=37 * ( 1 - 23.66% )/( (63 + 60.4)/ 2 )
=28.2458/61.7
=45.78 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=91.7 - 10.9 - ( 23.9 - max(0, 29.8 - 47.6+23.9))
=63

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=90.7 - 13.2 - ( 26.4 - max(0, 28.6 - 45.7+26.4))
=60.4

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Alfa Financial Software Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=37.8/( ( (7.9 + max(-13.5, 0)) + (7.4 + max(-13.8, 0)) )/ 2 )
=37.8/( ( 7.9 + 7.4 )/ 2 )
=37.8/7.65
=494.12 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.7 + 0 + 7.1) - (10.9 + 0 + 18.4)
=-13.5

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(8.5 + 0 + 5.1) - (13.2 + 0 + 14.2)
=-13.8

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Alfa Financial Software Holdings's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=18.5/64.2
=28.82 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Alfa Financial Software Holdings Operating Income Related Terms

Alfa Financial Software Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for Alfa Financial Software Holdings's Operating Income can be seen below:

* 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 Operating Income Chart

Alfa Financial Software Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.70 29.60 30.10 34.30 40.10

Alfa Financial Software Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.20 16.20 18.10 21.60 18.50
CHIX:ALFAL
82GF Score
Alfa Financial Software Holdings PLC CHIX:ALFAL
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Alfa Financial Software Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £40.1 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of £40.1 Mil mean?
Alfa Financial Software Holdings (CHIX:ALFAL) has a Operating Income of £40.1 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Alfa Financial Software Holdings and its competitors.
Is Alfa Financial Software Holdings' Operating Income too high?
Alfa Financial Software Holdings' current Operating Income is £40.1 Mil. 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' Operating Income compare to UBER and SHOP?
Alfa Financial Software Holdings' Operating Income of £40.1 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Alfa Financial Software Holdings and its competitors. Alfa Financial Software Holdings's current Operating Income is £40.1 Mil. 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 (CHIX:ALFAL) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.40, compared to a current price of £1.58 — trading 34% below its estimated fair value. The current Operating Income is £40.1 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Alfa Financial Software Holdings (CHIX:ALFAL), the current Operating Income is £40.1 Mil 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 (CHIX:ALFAL) Overvalued in 2026?

Based on GuruFocus' analysis, Alfa Financial Software Holdings stock appears to be undervalued. The current stock price of £1.58 is trading 34% below its estimated GF Value™ of £2.40. GuruFocus considers Alfa Financial Software Holdings to be Significantly Undervalued.

Key valuation signals for CHIX:ALFAL:

  • Operating Income: £40.1 Mil
  • GF Value™: £2.40 vs. price of £1.58 (34% below fair value)
  • GF Score™: 82/100

No single metric tells the full story. See the CHIX:ALFAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Alfa Financial Software Holdings Business Description

Other Exchanges ALFA:UKA9F:Germany
Address 1 Fore Street Avenue, Moor Place, London, GBR, EC2Y 9DT
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

Get the complete analysis for CHIX:ALFAL

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.58
Price
£2.40
GF Value