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. AFYA has an excellent profitability rating, but there are some minor concerns on its financial health. AFYA is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, AFYA could be worth investigating further for 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.
Each year in the past 5 years AFYA has been profitable.
AFYA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.65%, AFYA is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Return On Equity of AFYA (14.10%) is better than 76.39% of its industry peers.
The Return On Invested Capital of AFYA (9.38%) is better than 84.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 14.1% | ||
| ROIC | 9.38% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AFYA's Profit Margin of 18.20% is amongst the best of the industry. AFYA outperforms 91.67% 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.
AFYA's Operating Margin has improved in the last couple of years.
AFYA's Gross Margin of 62.38% is fine compared to the rest of the industry. AFYA outperforms 76.39% of its industry peers.
In the last couple of years the Gross Margin of AFYA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.03% | ||
| PM (TTM) | 18.2% | ||
| GM | 62.39% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.30 indicates that AFYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.30, AFYA is in the better half of the industry, outperforming 66.67% 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 has a better Debt to FCF ratio (3.51) than 72.22% 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: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.53
WACC17.86%
2.3 Liquidity
A Current Ratio of 1.60 indicates that AFYA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.60, AFYA is doing good in the industry, outperforming 61.11% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA's Quick ratio of 1.60 is fine compared to the rest of the industry. AFYA outperforms 65.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.59% over the past year.
Measured over the past years, AFYA shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.01% on average per year.
Looking at the last year, AFYA shows a quite strong growth in Revenue. The Revenue has grown by 14.90% in the last year.
Measured over the past years, AFYA shows a very strong growth in Revenue. The Revenue has been growing by 34.50% on average per year.
EPS 1Y (TTM)39.59%
EPS 3Y30.22%
EPS 5Y25.01%
EPS Q2Q%17.32%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.32%
3.2 Future
Based on estimates for the next years, AFYA will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
Based on estimates for the next years, AFYA will show a quite strong growth in Revenue. The Revenue will grow by 11.68% on average per year.
EPS Next Y-2.46%
EPS Next 2Y7.25%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue Next Year12.69%
Revenue Next 2Y10.88%
Revenue Next 3Y11.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 11.83 indicates a reasonable valuation of AFYA.
Based on the Price/Earnings ratio, AFYA is valued cheaper than 83.33% 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 28.79.
A Price/Forward Earnings ratio of 12.14 indicates a correct valuation of AFYA.
87.50% of the companies in the same industry are more expensive than AFYA, based on the Price/Forward Earnings ratio.
AFYA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
73.61% of the companies in the same industry are more expensive than AFYA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 90.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.47 | ||
| EV/EBITDA | 9.07 |
4.3 Compensation for Growth
The decent profitability rating of AFYA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y7.25%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
AFYA's Dividend Yield is rather good when compared to the industry average which is at 5.05. AFYA pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, AFYA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
AFYA is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y7.25%
EPS Next 3Y7.26%
18.58
+0.48 (+2.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners31.86%
Inst Owner Change-0.11%
Ins Owners11.17%
Ins Owner ChangeN/A
Market Cap1.64B
Analysts52.31
Price Target19.31 (3.93%)
Short Float %16.41%
Short Ratio16.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0%
PT rev (3m)-6.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.18%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-8.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 12.14 | ||
| P/S | 2.92 | ||
| P/FCF | 10.47 | ||
| P/OCF | 7.18 | ||
| P/B | 2.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.07 |
EPS(TTM)1.57
EY8.45%
EPS(NY)1.53
Fwd EY8.24%
FCF(TTM)1.77
FCFY9.55%
OCF(TTM)2.59
OCFY13.93%
SpS6.36
BVpS8.21
TBVpS-2.86
PEG (NY)N/A
PEG (5Y)0.47
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)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.37
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 | 2.3 |
F-Score7
WACC17.86%
ROIC/WACC0.53
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)39.59%
EPS 3Y30.22%
EPS 5Y25.01%
EPS Q2Q%17.32%
EPS Next Y-2.46%
EPS Next 2Y7.25%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.32%
Revenue Next Year12.69%
Revenue Next 2Y10.88%
Revenue Next 3Y11.68%
Revenue Next 5YN/A
EBIT growth 1Y24.37%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year54.9%
EBIT Next 3Y21.46%
EBIT Next 5YN/A
FCF growth 1Y17.04%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y26.5%
OCF growth 3Y31.44%
OCF growth 5Y36.78%