AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD
Taking everything into account, AFYA scores 6 out of 10 in our fundamental rating. AFYA was compared to 71 industry peers in the Diversified Consumer Services industry. AFYA has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: AFYA is growing strongly while it also seems undervalued. With these ratings, AFYA could be worth investigating further 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.
AFYA had positive earnings in each of the past 5 years.
Each year in the past 5 years AFYA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.65%, AFYA is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
The Return On Equity of AFYA (14.10%) is better than 74.65% of its industry peers.
With an excellent Return On Invested Capital value of 9.38%, AFYA belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFYA is below the industry average of 11.67%.
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
With an excellent Profit Margin value of 18.20%, AFYA belongs to the best of the industry, outperforming 91.55% 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 29.03%. This is amongst the best in the industry. AFYA outperforms 100.00% of its industry peers.
AFYA's Operating Margin has declined in the last couple of years.
AFYA has a Gross Margin of 62.38%. This is in the better half of the industry: AFYA outperforms 76.06% of its industry peers.
In the last couple of years the Gross Margin of AFYA has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFYA is destroying value.
The number of shares outstanding for AFYA remains at a similar level compared to 1 year ago.
AFYA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AFYA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 indicates that AFYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.25, AFYA is doing good in the industry, outperforming 67.61% of the companies in the same industry.
The Debt to FCF ratio of AFYA is 3.51, which is a good value as it means it would take AFYA, 3.51 years of fcf income to pay off all of its debts.
AFYA's Debt to FCF ratio of 3.51 is fine compared to the rest of the industry. AFYA outperforms 71.83% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that AFYA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, AFYA is doing worse than 64.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.6
WACC15.63%
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.
AFYA's Current ratio of 1.60 is in line compared to the rest of the industry. AFYA outperforms 59.15% of its industry peers.
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 63.38% 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 43.98%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.06% on average over the past years.
Looking at the last year, AFYA shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
The Revenue has been growing by 53.83% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)43.98%
EPS 3Y14.65%
EPS 5Y6.06%
EPS Q2Q%29.71%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y33.78%
Revenue growth 5Y53.83%
Sales Q2Q%16.27%
3.2 Future
The Earnings Per Share is expected to grow by 28.75% on average over the next years. This is a very strong growth
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.68% yearly.
EPS Next Y32.23%
EPS Next 2Y17.44%
EPS Next 3Y16.83%
EPS Next 5Y28.75%
Revenue Next Year15.75%
Revenue Next 2Y14.24%
Revenue Next 3Y12.49%
Revenue Next 5Y12.68%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.50, which indicates a very decent valuation of AFYA.
84.51% of the companies in the same industry are more expensive than AFYA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AFYA to the average of the S&P500 Index (29.35), we can say AFYA is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.21, the valuation of AFYA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AFYA is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
AFYA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFYA is valued cheaper than 81.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AFYA is valued cheaper than 90.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.79 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
The 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.
AFYA's earnings are expected to grow with 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)1.9
EPS Next 2Y17.44%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
AFYA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.13
+0.49 (+2.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners31.86%
Inst Owner Change36.24%
Ins Owners11.17%
Ins Owner ChangeN/A
Market Cap1.51B
Analysts71.43
Price Target19.6 (14.42%)
Short Float %13.58%
Short Ratio15.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.53%
Min EPS beat(2)-10.08%
Max EPS beat(2)15.13%
EPS beat(4)3
Avg EPS beat(4)8.15%
Min EPS beat(4)-10.08%
Max EPS beat(4)15.13%
EPS beat(8)3
Avg EPS beat(8)2.08%
EPS beat(12)6
Avg EPS beat(12)4.89%
EPS beat(16)6
Avg EPS beat(16)-3.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)1.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)5
Avg Revenue beat(16)-0.88%
PT rev (1m)-3.58%
PT rev (3m)-8.86%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-5.18%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 11.21 | ||
| P/S | 2.73 | ||
| P/FCF | 9.79 | ||
| P/OCF | 6.72 | ||
| P/B | 2.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.78 |
EPS(TTM)1.49
EY8.7%
EPS(NY)1.53
Fwd EY8.92%
FCF(TTM)1.75
FCFY10.21%
OCF(TTM)2.55
OCFY14.89%
SpS6.27
BVpS8.09
TBVpS-2.82
PEG (NY)0.36
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 14.1% | ||
| ROCE | 11.87% | ||
| ROIC | 9.38% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 51.82% | ||
| OM | 29.03% | ||
| PM (TTM) | 18.2% | ||
| GM | 62.39% | ||
| FCFM | 27.9% |
ROA(3y)4.58%
ROA(5y)5.15%
ROE(3y)9.99%
ROE(5y)9.77%
ROIC(3y)7.92%
ROIC(5y)7.37%
ROICexc(3y)9.09%
ROICexc(5y)9.25%
ROICexgc(3y)43.33%
ROICexgc(5y)45.82%
ROCE(3y)10.02%
ROCE(5y)9.33%
ROICexcg growth 3Y1.32%
ROICexcg growth 5YN/A
ROICexc growth 3Y3.68%
ROICexc growth 5Y-2.18%
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%
F-Score7
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 124.69% | ||
| Cap/Sales | 12.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.55% | ||
| Profit Quality | 153.29% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.25 |
F-Score7
WACC15.63%
ROIC/WACC0.6
Cap/Depr(3y)136.1%
Cap/Depr(5y)140.23%
Cap/Sales(3y)12.46%
Cap/Sales(5y)13.01%
Profit Quality(3y)170.53%
Profit Quality(5y)138.87%
High Growth Momentum
Growth
EPS 1Y (TTM)43.98%
EPS 3Y14.65%
EPS 5Y6.06%
EPS Q2Q%29.71%
EPS Next Y32.23%
EPS Next 2Y17.44%
EPS Next 3Y16.83%
EPS Next 5Y28.75%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y33.78%
Revenue growth 5Y53.83%
Sales Q2Q%16.27%
Revenue Next Year15.75%
Revenue Next 2Y14.24%
Revenue Next 3Y12.49%
Revenue Next 5Y12.68%
EBIT growth 1Y24.37%
EBIT growth 3Y28.29%
EBIT growth 5Y51.41%
EBIT Next Year76.91%
EBIT Next 3Y28.97%
EBIT Next 5Y22.63%
FCF growth 1Y79.54%
FCF growth 3Y50.55%
FCF growth 5Y68.59%
OCF growth 1Y58.37%
OCF growth 3Y41.1%
OCF growth 5Y67.02%