Alfa Financial Software (Alfa), a leading provider of software to the asset financing industry, is, in our view, a high-quality, well-managed business with strong returns on capital, superior products and a carefully considered long-term strategy. Alfa’s FY24 ROE was 55%, well above the software peer LTM average of 11%. We break down the drivers of ROE, using Dupont analysis, and determine that the key reasons for Alfa’s strong returns to shareholders are its operating efficiency and asset-use e ....
