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AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis

NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD

16.19  -0.28 (-1.7%)

Fundamental Rating

6

Overall AFYA gets a fundamental rating of 6 out of 10. We evaluated AFYA against 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. These ratings could make AFYA a good candidate for value and growth investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

AFYA had positive earnings in the past year.
In the past year AFYA had a positive cash flow from operations.
In the past 5 years AFYA has always been profitable.
Each year in the past 5 years AFYA had a positive operating cash flow.
AFYA Yearly Net Income VS EBIT VS OCF VS FCFAFYA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

1.2 Ratios

The Return On Assets of AFYA (6.65%) is better than 81.25% of its industry peers.
AFYA has a better Return On Equity (14.10%) than 73.44% 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.
Measured over the past 3 years, the Average Return On Invested Capital for AFYA is below the industry average of 11.54%.
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 RankSector 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%
AFYA Yearly ROA, ROE, ROICAFYA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 20 40 60 80 100

1.3 Margins

AFYA's Profit Margin of 18.20% is amongst the best of the industry. AFYA outperforms 90.63% of its industry peers.
In the last couple of years the Profit Margin of AFYA has declined.
AFYA has a Operating Margin of 29.03%. This is amongst the best in the industry. AFYA outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of AFYA has declined.
Looking at the Gross Margin, with a value of 62.38%, AFYA is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
AFYA's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
AFYA Yearly Profit, Operating, Gross MarginsAFYA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 20 40 60

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5

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.
Compared to 5 years ago, AFYA has more shares outstanding
Compared to 1 year ago, AFYA has an improved debt to assets ratio.
AFYA Yearly Shares OutstandingAFYA Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
AFYA Yearly Total Debt VS Total AssetsAFYA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

AFYA has an Altman-Z score of 2.22. 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.
AFYA has a Altman-Z score of 2.22. This is in the better half of the industry: AFYA outperforms 65.63% 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 67.19% 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.
With a Debt to Equity ratio value of 0.74, AFYA is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 3.51
Altman-Z 2.22
ROIC/WACC0.61
WACC15.3%
AFYA Yearly LT Debt VS Equity VS FCFAFYA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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.
With a Current ratio value of 1.60, AFYA perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
AFYA has a Quick 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 has a Quick ratio of 1.60. This is in the better half of the industry: AFYA outperforms 60.94% of its industry peers.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 1.6
AFYA Yearly Current Assets VS Current LiabilitesAFYA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 43.98% over the past year.
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.
AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.83% yearly.
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 Y31.98%
EPS Next 2Y17.95%
EPS Next 3Y17.08%
EPS Next 5Y28.75%
Revenue Next Year15.37%
Revenue Next 2Y13.56%
Revenue Next 3Y11.88%
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.
AFYA Yearly Revenue VS EstimatesAFYA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B
AFYA Yearly EPS VS EstimatesAFYA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.94, which indicates a very decent valuation of AFYA.
Based on the Price/Earnings ratio, AFYA is valued cheaper than 90.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, AFYA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.60, the valuation of AFYA can be described as reasonable.
Based on the Price/Forward Earnings ratio, AFYA is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, AFYA is valued rather cheaply.
Industry RankSector Rank
PE 10.94
Fwd PE 10.6
AFYA Price Earnings VS Forward Price EarningsAFYA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AFYA is valued a bit cheaper than 79.69% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 92.19% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.34
EV/EBITDA 8.57
AFYA Per share dataAFYA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

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.
AFYA has a very decent profitability rating, which may justify a higher PE ratio.
AFYA's earnings are expected to grow with 17.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)1.81
EPS Next 2Y17.95%
EPS Next 3Y17.08%

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0

5. Dividend

5.1 Amount

AFYA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AFYA LTD-CLASS A

NASDAQ:AFYA (2/5/2025, 12:36:23 PM)

16.19

-0.28 (-1.7%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-13 2024-11-13/amc
Earnings (Next)N/A N/A
Inst Owners24.46%
Inst Owner Change-3.88%
Ins Owners17.94%
Ins Owner ChangeN/A
Market Cap1.43B
Analysts74.29
Price Target20.33 (25.57%)
Short Float %11.83%
Short Ratio12.9
Dividend
Industry RankSector 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)-1.41%
PT rev (3m)-6.22%
EPS NQ rev (1m)-3.74%
EPS NQ rev (3m)-12.61%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 10.94
Fwd PE 10.6
P/S 2.6
P/FCF 9.34
P/OCF 6.4
P/B 2.02
P/tB N/A
EV/EBITDA 8.57
EPS(TTM)1.48
EY9.14%
EPS(NY)1.53
Fwd EY9.44%
FCF(TTM)1.73
FCFY10.71%
OCF(TTM)2.53
OCFY15.62%
SpS6.22
BVpS8.02
TBVpS-2.79
PEG (NY)0.34
PEG (5Y)1.81
Profitability
Industry RankSector 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 RankSector 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 2.22
F-Score7
WACC15.3%
ROIC/WACC0.61
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 Y31.98%
EPS Next 2Y17.95%
EPS Next 3Y17.08%
EPS Next 5Y28.75%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y33.78%
Revenue growth 5Y53.83%
Sales Q2Q%16.27%
Revenue Next Year15.37%
Revenue Next 2Y13.56%
Revenue Next 3Y11.88%
Revenue Next 5Y12.68%
EBIT growth 1Y24.37%
EBIT growth 3Y28.29%
EBIT growth 5Y51.41%
EBIT Next Year75.23%
EBIT Next 3Y27.82%
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%