Why quality investors should have a look at AFYA LTD-CLASS A (NASDAQ:AFYA).

In this article we will dive into AFYA LTD-CLASS A (NASDAQ:AFYA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed AFYA LTD-CLASS A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• Over the past 5 years, AFYA LTD-CLASS A has experienced impressive revenue growth, with 60.9% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• AFYA LTD-CLASS A demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 56.98% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• AFYA LTD-CLASS A demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.25, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 110.0%, AFYA LTD-CLASS A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• AFYA LTD-CLASS A has experienced impressive EBIT growth over the past 5 years, with 68.22% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• AFYA LTD-CLASS A has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NASDAQ:AFYA?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to AFYA. AFYA was compared to 68 industry peers in the Diversified Consumer Services industry. AFYA scores excellent on profitability, but there are 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.

Check the latest full fundamental report of AFYA for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.