AFYA LTD-CLASS A (AFYA)
KYG011251066 - Common Stock
AFYA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Diversified Consumer Services industry. AFYA scores excellent on profitability, but there are some minor concerns on its financial health. AFYA is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make AFYA suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year AFYA was profitable.
In the past year AFYA had a positive cash flow from operations.
In the past 5 years AFYA has always been profitable.
AFYA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFYA's Return On Assets of 6.65% is amongst the best of the industry. AFYA outperforms 81.25% of its industry peers.
The Return On Equity of AFYA (14.10%) is better than 76.56% of its industry peers.
AFYA has a Return On Invested Capital of 9.38%. This is amongst the best in the industry. AFYA outperforms 82.81% of its industry peers.
AFYA had an Average Return On Invested Capital over the past 3 years of 7.92%. This is below the industry average of 12.48%.
The last Return On Invested Capital (9.38%) for AFYA is above the 3 year average (7.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 14.1% | ||
| ROIC | 9.38% |
ROA(3y)4.58%
ROA(5y)5.15%
ROE(3y)9.99%
ROE(5y)9.77%
ROIC(3y)7.92%
ROIC(5y)7.37%
1.3 Margins
AFYA has a better Profit Margin (18.20%) than 89.06% of its industry peers.
In the last couple of years the Profit Margin of AFYA has declined.
AFYA has a better Operating Margin (29.03%) than 98.44% of its industry peers.
AFYA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.38%, AFYA is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
AFYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.03% | ||
| PM (TTM) | 18.2% | ||
| GM | 62.39% |
OM growth 3Y-4.1%
OM growth 5Y-1.57%
PM growth 3Y-17.95%
PM growth 5Y-13.88%
GM growth 3Y-1.27%
GM growth 5Y4.33%
2. Health
2.1 Basic Checks
AFYA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AFYA has about the same amount of shares outstanding.
The number of shares outstanding for AFYA has been increased compared to 5 years ago.
AFYA has a better debt/assets ratio than last year.
2.2 Solvency
AFYA has an Altman-Z score of 2.21. This is not the best score and indicates that AFYA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of AFYA (2.21) is better than 64.06% of its industry peers.
AFYA has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as AFYA would need 3.51 years to pay back of all of its debts.
The Debt to FCF ratio of AFYA (3.51) is better than 65.63% of its industry peers.
AFYA has a Debt/Equity ratio of 0.74. This is a neutral value indicating AFYA is somewhat dependend on debt financing.
AFYA has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: AFYA underperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.69
WACC13.56%
2.3 Liquidity
AFYA has a Current Ratio of 1.60. This is a normal value and indicates that AFYA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AFYA (1.60) is comparable to the rest of the industry.
A Quick Ratio of 1.60 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA has a better Quick ratio (1.60) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.07%, which is quite impressive.
Measured over the past 5 years, AFYA shows a small growth in Earnings Per Share. The EPS has been growing by 6.06% on average per year.
The Revenue has grown by 16.67% in the past year. This is quite good.
Measured over the past years, AFYA shows a very strong growth in Revenue. The Revenue has been growing by 53.83% on average per year.
EPS 1Y (TTM)45.07%
EPS 3Y14.65%
EPS 5Y6.06%
EPS Q2Q%34.43%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y33.78%
Revenue growth 5Y53.83%
Sales Q2Q%21.57%
3.2 Future
The Earnings Per Share is expected to grow by 19.93% on average over the next years. This is quite good.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.64% yearly.
EPS Next Y31.26%
EPS Next 2Y24.3%
EPS Next 3Y19.93%
EPS Next 5YN/A
Revenue Next Year17.5%
Revenue Next 2Y14.36%
Revenue Next 3Y12.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.91, which indicates a very decent valuation of AFYA.
AFYA's Price/Earnings ratio is rather cheap when compared to the industry. AFYA is cheaper than 89.06% of the companies in the same industry.
AFYA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 9.59, the valuation of AFYA can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 93.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. AFYA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFYA is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
AFYA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFYA is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
AFYA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AFYA may justify a higher PE ratio.
A more expensive valuation may be justified as AFYA's earnings are expected to grow with 19.93% in the coming years.
PEG (NY)0.35
PEG (5Y)1.8
EPS Next 2Y24.3%
EPS Next 3Y19.93%
5. Dividend
5.1 Amount
No dividends for AFYA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AFYA LTD-CLASS A
NASDAQ:AFYA (11/21/2024, 8:11:09 PM)
After market: 16.26 0 (0%)16.26
-0.1 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 9.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.35
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 14.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.03% | ||
| PM (TTM) | 18.2% | ||
| GM | 62.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)45.07%
EPS 3Y14.65%
EPS 5Y
EPS Q2Q%
EPS Next Y31.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.67%
Revenue growth 3Y33.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y