AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AFYA. AFYA was compared to 72 industry peers in the Diversified Consumer Services industry. While AFYA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AFYA is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year AFYA was profitable.
AFYA had a positive operating cash flow in the past year.
Each year in the past 5 years AFYA has been profitable.
In the past 5 years AFYA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AFYA (7.46%) is better than 76.39% of its industry peers.
The Return On Equity of AFYA (15.45%) is better than 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.11%, AFYA belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AFYA is in line with the industry average of 10.64%.
The 3 year average ROIC (9.34%) for AFYA is below the current ROIC(11.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 15.45% | ||
| ROIC | 11.11% |
ROA(3y)5.81%
ROA(5y)5.4%
ROE(3y)12.4%
ROE(5y)11.05%
ROIC(3y)9.34%
ROIC(5y)8.2%
1.3 Margins
Looking at the Profit Margin, with a value of 19.79%, AFYA belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
AFYA's Profit Margin has declined in the last couple of years.
AFYA has a Operating Margin of 31.87%. This is amongst the best in the industry. AFYA outperforms 98.61% of its industry peers.
In the last couple of years the Operating Margin of AFYA has grown nicely.
AFYA has a Gross Margin of 64.24%. This is in the better half of the industry: AFYA outperforms 77.78% of its industry peers.
AFYA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.87% | ||
| PM (TTM) | 19.79% | ||
| GM | 64.24% |
OM growth 3Y6.1%
OM growth 5Y2.29%
PM growth 3Y13.74%
PM growth 5Y-3.65%
GM growth 3Y0.61%
GM growth 5Y1.44%
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.
AFYA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AFYA has been increased compared to 5 years ago.
Compared to 1 year ago, AFYA has a worse debt to assets ratio.
2.2 Solvency
AFYA has an Altman-Z score of 2.23. 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.
Looking at the Altman-Z score, with a value of 2.23, AFYA is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of AFYA is 2.85, which is a good value as it means it would take AFYA, 2.85 years of fcf income to pay off all of its debts.
AFYA has a better Debt to FCF ratio (2.85) than 75.00% of its industry peers.
AFYA has a Debt/Equity ratio of 0.63. This is a neutral value indicating AFYA is somewhat dependend on debt financing.
The Debt to Equity ratio of AFYA (0.63) is worse than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.99
WACC11.17%
2.3 Liquidity
A Current Ratio of 1.42 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA's Current ratio of 1.42 is in line compared to the rest of the industry. AFYA outperforms 58.33% of its industry peers.
AFYA has a Quick Ratio of 1.42. This is a normal value and indicates that AFYA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.42, AFYA is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.97%, which is quite impressive.
Measured over the past years, AFYA shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.00% on average per year.
AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.70%.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.50% yearly.
EPS 1Y (TTM)27.97%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.79%
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
3.2 Future
AFYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.42% yearly.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.98% yearly.
EPS Next Y5.2%
EPS Next 2Y9.72%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue Next Year13.23%
Revenue Next 2Y10.94%
Revenue Next 3Y9.98%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.19, the valuation of AFYA can be described as very reasonable.
Based on the Price/Earnings ratio, AFYA is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AFYA to the average of the S&P500 Index (27.19), we can say AFYA is valued rather cheaply.
AFYA is valuated reasonably with a Price/Forward Earnings ratio of 8.04.
AFYA's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFYA is cheaper than 97.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, AFYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
AFYA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFYA is cheaper than 84.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AFYA is valued cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AFYA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)0.37
EPS Next 2Y9.72%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.45%.
AFYA's Dividend Yield is rather good when compared to the industry average which is at 3.87. AFYA pays more dividend than 88.89% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, AFYA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
AFYA does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.72%
EPS Next 3Y11.42%
15.53
+0.09 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners17.74%
Inst Owner Change0%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.46B
Analysts52.31
Price Target20.33 (30.91%)
Short Float %1.49%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.87%
Min EPS beat(2)14.25%
Max EPS beat(2)21.5%
EPS beat(4)3
Avg EPS beat(4)10.2%
Min EPS beat(4)-10.08%
Max EPS beat(4)21.5%
EPS beat(8)5
Avg EPS beat(8)8.32%
EPS beat(12)6
Avg EPS beat(12)4.62%
EPS beat(16)8
Avg EPS beat(16)3.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.92%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)4
Avg Revenue beat(12)-0.03%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)2.2%
PT rev (3m)5.28%
EPS NQ rev (1m)-3.03%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)4.64%
EPS NY rev (3m)7.23%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.04 | ||
| P/S | 2.36 | ||
| P/FCF | 7.21 | ||
| P/OCF | 5.47 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7 |
EPS(TTM)1.69
EY10.88%
EPS(NY)1.93
Fwd EY12.43%
FCF(TTM)2.15
FCFY13.87%
OCF(TTM)2.84
OCFY18.27%
SpS6.59
BVpS8.44
TBVpS-2.12
PEG (NY)1.77
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 15.45% | ||
| ROCE | 14.06% | ||
| ROIC | 11.11% | ||
| ROICexc | 13.04% | ||
| ROICexgc | 76.58% | ||
| OM | 31.87% | ||
| PM (TTM) | 19.79% | ||
| GM | 64.24% | ||
| FCFM | 32.67% |
ROA(3y)5.81%
ROA(5y)5.4%
ROE(3y)12.4%
ROE(5y)11.05%
ROIC(3y)9.34%
ROIC(5y)8.2%
ROICexc(3y)10.67%
ROICexc(5y)9.63%
ROICexgc(3y)53.37%
ROICexgc(5y)48.58%
ROCE(3y)11.82%
ROCE(5y)10.37%
ROICexcg growth 3Y23.68%
ROICexcg growth 5Y4.99%
ROICexc growth 3Y18.62%
ROICexc growth 5Y3.52%
OM growth 3Y6.1%
OM growth 5Y2.29%
PM growth 3Y13.74%
PM growth 5Y-3.65%
GM growth 3Y0.61%
GM growth 5Y1.44%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 102.92% | ||
| Cap/Sales | 10.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.61% | ||
| Profit Quality | 165.08% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.23 |
F-Score7
WACC11.17%
ROIC/WACC0.99
Cap/Depr(3y)115.53%
Cap/Depr(5y)130.54%
Cap/Sales(3y)11.06%
Cap/Sales(5y)12.14%
Profit Quality(3y)172.56%
Profit Quality(5y)151.27%
High Growth Momentum
Growth
EPS 1Y (TTM)27.97%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.79%
EPS Next Y5.2%
EPS Next 2Y9.72%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
Revenue Next Year13.23%
Revenue Next 2Y10.94%
Revenue Next 3Y9.98%
Revenue Next 5YN/A
EBIT growth 1Y32.47%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year57.47%
EBIT Next 3Y22.54%
EBIT Next 5YN/A
FCF growth 1Y85.33%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y64.88%
OCF growth 3Y31.44%
OCF growth 5Y36.78%