AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
USA - NASDAQ:AFYA - KYG011251066 - Common Stock
14.6 USD
-0.22 (-1.48%)
14.6 USD
0 (0%)
AFYA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 79 industry peers in the Diversified Consumer Services industry. While AFYA belongs to the best of the industry regarding profitability, 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.
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.
Each year in the past 5 years AFYA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AFYA (7.94%) is better than 73.42% of its industry peers.
With a decent Return On Equity value of 15.37%, AFYA is doing good in the industry, outperforming 73.42% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.76%, AFYA belongs to the best of the industry, outperforming 87.34% of the companies in the same industry.
AFYA had an Average Return On Invested Capital over the past 3 years of 9.34%. This is in line with the industry average of 10.08%.
The last Return On Invested Capital (12.76%) for AFYA is above the 3 year average (9.34%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 20.08%, AFYA belongs to the best of the industry, outperforming 92.41% 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 32.84%. This is amongst the best in the industry. AFYA outperforms 97.47% of its industry peers.
AFYA's Operating Margin has improved in the last couple of years.
AFYA's Gross Margin of 64.98% is fine compared to the rest of the industry. AFYA outperforms 75.95% 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 | 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
AFYA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 is higher compared to a year ago.
2.2 Solvency
AFYA has an Altman-Z score of 2.21. 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.
The Altman-Z score of AFYA (2.21) is better than 64.56% 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.
AFYA has a better Debt to FCF ratio (2.43) than 74.68% of its industry peers.
AFYA has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, AFYA is in line with its industry, outperforming 44.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.15
WACC11.1%
2.3 Liquidity
AFYA has a Current 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.
AFYA has a Current ratio of 0.98. This is in the lower half of the industry: AFYA underperforms 62.03% of its industry peers.
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.
AFYA has a Quick ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.08% over the past year.
The Earnings Per Share has been growing by 25.00% on average over the past years. This is a very strong growth
Looking at the last year, AFYA shows a quite strong growth in Revenue. The Revenue has grown by 14.07% in the last year.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.50% yearly.
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
AFYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.35% yearly.
The Revenue is expected to grow by 9.42% on average over the next years. This is quite good.
EPS Next Y0.65%
EPS Next 2Y7.19%
EPS Next 3Y8.35%
EPS Next 5YN/A
Revenue Next Year12.4%
Revenue Next 2Y10.36%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
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 decreasing.
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
The Price/Earnings ratio is 8.07, which indicates a very decent valuation of AFYA.
Based on the Price/Earnings ratio, AFYA is valued cheaper than 87.34% of the companies in the same industry.
AFYA is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
AFYA is valuated cheaply with a Price/Forward Earnings ratio of 7.59.
AFYA's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFYA is cheaper than 94.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. AFYA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.59 |
4.2 Price Multiples
81.01% of the companies in the same industry are more expensive than AFYA, based on the Enterprise Value to EBITDA ratio.
AFYA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFYA is cheaper than 96.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AFYA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)12.34
PEG (5Y)0.32
EPS Next 2Y7.19%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 2.05, AFYA pays a better dividend. On top of this AFYA pays more dividend than 91.14% of the companies listed in the same industry.
AFYA's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 2Y7.19%
EPS Next 3Y8.35%
14.6
-0.22 (-1.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners19.3%
Inst Owner Change0.35%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.37B
Revenue(TTM)3.63B
Net Income(TTM)729.50M
Analysts77.14
Price Target19.23 (31.71%)
Short Float %1.82%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.27%
Min EPS beat(2)7.76%
Max EPS beat(2)14.79%
EPS beat(4)4
Avg EPS beat(4)14.57%
Min EPS beat(4)7.76%
Max EPS beat(4)21.5%
EPS beat(8)7
Avg EPS beat(8)11.36%
EPS beat(12)7
Avg EPS beat(12)6.24%
EPS beat(16)10
Avg EPS beat(16)7.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)-1.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)-0.92%
Revenue beat(8)1
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)4
Avg Revenue beat(16)-0.95%
PT rev (1m)0.76%
PT rev (3m)-4%
EPS NQ rev (1m)-3.29%
EPS NQ rev (3m)-2.44%
EPS NY rev (1m)-2.62%
EPS NY rev (3m)-4.32%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.59 | ||
| P/S | 2.01 | ||
| P/FCF | 5.96 | ||
| P/OCF | 4.67 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.95 |
EPS(TTM)1.81
EY12.4%
EPS(NY)1.92
Fwd EY13.17%
FCF(TTM)2.45
FCFY16.77%
OCF(TTM)3.13
OCFY21.42%
SpS7.27
BVpS9.5
TBVpS-1.66
PEG (NY)12.34
PEG (5Y)0.32
Graham Number19.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 15.37% | ||
| ROCE | 16.15% | ||
| ROIC | 12.76% | ||
| ROICexc | 14.75% | ||
| ROICexgc | 115.61% | ||
| OM | 32.84% | ||
| PM (TTM) | 20.08% | ||
| GM | 64.98% | ||
| FCFM | 33.68% |
ROA(3y)5.81%
ROA(5y)5.4%
ROE(3y)12.4%
ROE(5y)11.05%
ROIC(3y)9.34%
ROIC(5y)8.2%
ROICexc(3y)10.67%
ROICexc(5y)9.63%
ROICexgc(3y)53.37%
ROICexgc(5y)48.58%
ROCE(3y)11.82%
ROCE(5y)10.37%
ROICexgc growth 3Y23.68%
ROICexgc growth 5Y4.99%
ROICexc growth 3Y18.62%
ROICexc growth 5Y3.52%
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 92.89% | ||
| Cap/Sales | 9.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.29% | ||
| Profit Quality | 167.73% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.21 |
F-Score7
WACC11.1%
ROIC/WACC1.15
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)12.08%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.2%
EPS Next Y0.65%
EPS Next 2Y7.19%
EPS Next 3Y8.35%
EPS Next 5YN/A
Revenue 1Y (TTM)14.07%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%10.38%
Revenue Next Year12.4%
Revenue Next 2Y10.36%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
EBIT growth 1Y29%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year60.99%
EBIT Next 3Y23.03%
EBIT Next 5YN/A
FCF growth 1Y61.18%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y52.58%
OCF growth 3Y31.44%
OCF growth 5Y36.78%
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.
What is the valuation status of AFYA LTD-CLASS A (AFYA) stock?
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.
What is the financial health of AFYA LTD-CLASS A (AFYA) stock?
The financial health rating of AFYA LTD-CLASS A (AFYA) is 4 / 10.