14.32 USD
+0.35 (+2.51%)
Overall AFYA gets a fundamental rating of 6 out of 10. We evaluated AFYA against 76 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 growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- AFYA had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 7.94%, AFYA is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- With a decent Return On Equity value of 15.37%, AFYA is doing good in the industry, outperforming 71.05% of the companies in the same industry.
- The Return On Invested Capital of AFYA (12.76%) is better than 86.84% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AFYA is in line with the industry average of 10.15%.
- The 3 year average ROIC (9.34%) for AFYA is below the current ROIC(12.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.37% | ||
| ROIC | 12.76% |
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
- The Profit Margin of AFYA (20.08%) is better than 90.79% of its industry peers.
- In the last couple of years the Profit Margin of AFYA has declined.
- AFYA's Operating Margin of 32.84% is amongst the best of the industry. AFYA outperforms 97.37% of its industry peers.
- In the last couple of years the Operating Margin of AFYA has grown nicely.
- Looking at the Gross Margin, with a value of 64.98%, AFYA is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- AFYA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.84% | ||
| PM (TTM) | 20.08% | ||
| GM | 64.98% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AFYA is creating some value.
- The number of shares outstanding for AFYA remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, AFYA has more shares outstanding
- Compared to 1 year ago, AFYA has a worse debt to assets ratio.
2.2 Solvency
- AFYA has an Altman-Z score of 2.19. 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 2.19. This is in the better half of the industry: AFYA outperforms 64.47% of its industry peers.
- The Debt to FCF ratio of AFYA is 2.43, which is a good value as it means it would take AFYA, 2.43 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AFYA (2.43) is better than 77.63% of its industry peers.
- A Debt/Equity ratio of 0.42 indicates that AFYA is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.42, AFYA is in line with its industry, outperforming 46.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.22
WACC10.47%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that AFYA may have some problems paying its short term obligations.
- The Current ratio of AFYA (0.98) is comparable to the rest of the industry.
- AFYA has a Quick Ratio of 0.98. This is a bad value and indicates that AFYA is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of AFYA (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.08%, which is quite good.
- The Earnings Per Share has been growing by 25.00% on average over the past years. This is a very strong growth
- AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.07%.
- The Revenue has been growing by 34.50% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)12.08%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.2%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%10.38%
3.2 Future
- The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
- Based on estimates for the next years, AFYA will show a quite strong growth in Revenue. The Revenue will grow by 9.24% on average per year.
EPS Next Y1.45%
EPS Next 2Y5.91%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue Next Year12.4%
Revenue Next 2Y10.01%
Revenue Next 3Y9.24%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.87 indicates a rather cheap valuation of AFYA.
- 88.16% of the companies in the same industry are more expensive than AFYA, based on the Price/Earnings ratio.
- AFYA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 7.61, which indicates a rather cheap valuation of AFYA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 93.42% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of AFYA to the average of the S&P500 Index (24.32), we can say AFYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
- AFYA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFYA is cheaper than 80.26% 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 97.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 5.85 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AFYA does not grow enough to justify the current Price/Earnings ratio.
- AFYA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.41
PEG (5Y)0.31
EPS Next 2Y5.91%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.61%, AFYA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.36, AFYA pays a better dividend. On top of this AFYA pays more dividend than 89.47% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AFYA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 2Y5.91%
EPS Next 3Y8.1%
AFYA LTD-CLASS A / AFYA FAQ
What is the ChartMill fundamental rating of AFYA LTD-CLASS A (AFYA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to AFYA.
Can you provide the valuation status for AFYA LTD-CLASS A?
ChartMill assigns a valuation rating of 8 / 10 to AFYA LTD-CLASS A (AFYA). This can be considered as Undervalued.
How profitable is AFYA LTD-CLASS A (AFYA) stock?
AFYA LTD-CLASS A (AFYA) has a profitability rating of 8 / 10.
Can you provide the financial health for AFYA stock?
The financial health rating of AFYA LTD-CLASS A (AFYA) is 4 / 10.