AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
USA - NASDAQ:AFYA - KYG011251066 - Common Stock
14.71 USD
-0.33 (-2.19%)
14.71 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AFYA. AFYA was compared to 77 industry peers in the Diversified Consumer Services industry. AFYA scores excellent on profitability, 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.
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.
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 7.51%, AFYA is doing good in the industry, outperforming 76.62% of the companies in the same industry.
The Return On Equity of AFYA (15.10%) is better than 76.62% of its industry peers.
With an excellent Return On Invested Capital value of 12.57%, AFYA belongs to the best of the industry, outperforming 89.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFYA is in line with the industry average of 9.48%.
The 3 year average ROIC (9.34%) for AFYA is below the current ROIC(12.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.51% | ||
| ROE | 15.1% | ||
| ROIC | 12.57% |
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 (19.58%) is better than 90.91% of its industry peers.
In the last couple of years the Profit Margin of AFYA has declined.
With an excellent Operating Margin value of 32.42%, AFYA belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
In the last couple of years the Operating Margin of AFYA has grown nicely.
AFYA has a Gross Margin of 64.56%. This is in the better half of the industry: AFYA outperforms 76.62% of its industry peers.
AFYA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.42% | ||
| PM (TTM) | 19.58% | ||
| GM | 64.56% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AFYA is still creating some value.
AFYA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AFYA has been increased compared to 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 2.14. 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's Altman-Z score of 2.14 is fine compared to the rest of the industry. AFYA outperforms 64.94% of its industry peers.
AFYA has a debt to FCF ratio of 2.94. This is a good value and a sign of high solvency as AFYA would need 2.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.94, AFYA is in the better half of the industry, outperforming 74.03% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that AFYA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, AFYA perfoms like the industry average, outperforming 46.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.19
WACC10.58%
2.3 Liquidity
AFYA has a Current Ratio of 0.94. 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 Current ratio of AFYA (0.94) is comparable to the rest of the industry.
A Quick Ratio of 0.94 indicates that AFYA may have some problems paying its short term obligations.
The Quick ratio of AFYA (0.94) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.15% 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 25.00% on average per year.
AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
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)14.15%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%-0.87%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%13.52%
3.2 Future
Based on estimates for the next years, AFYA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.27% on average per year.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.42% yearly.
EPS Next Y3.36%
EPS Next 2Y8.01%
EPS Next 3Y9.27%
EPS Next 5YN/A
Revenue Next Year12.37%
Revenue Next 2Y10.38%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AFYA is valuated reasonably with a Price/Earnings ratio of 8.45.
Based on the Price/Earnings ratio, AFYA is valued cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, AFYA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.61 indicates a rather cheap valuation of AFYA.
AFYA's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFYA is cheaper than 96.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. AFYA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFYA is valued cheaper than 88.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AFYA is valued cheaper than 94.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.77 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AFYA may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)0.34
EPS Next 2Y8.01%
EPS Next 3Y9.27%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.02, AFYA pays a better dividend. On top of this AFYA pays more dividend than 90.91% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, AFYA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 2Y8.01%
EPS Next 3Y9.27%
14.71
-0.33 (-2.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners19.3%
Inst Owner Change-0.13%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.38B
Revenue(TTM)3.55B
Net Income(TTM)694.24M
Analysts77.14
Price Target19.09 (29.78%)
Short Float %1.76%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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%
Min EPS beat(2)7.76%
Max EPS beat(2)14.25%
EPS beat(4)3
Avg EPS beat(4)8.36%
Min EPS beat(4)-10.08%
Max EPS beat(4)21.5%
EPS beat(8)6
Avg EPS beat(8)9.45%
EPS beat(12)6
Avg EPS beat(12)4.28%
EPS beat(16)9
Avg EPS beat(16)5.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)-0.92%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-1.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.81%
PT rev (1m)0.38%
PT rev (3m)-6.09%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 7.61 | ||
| P/S | 2.09 | ||
| P/FCF | 6.77 | ||
| P/OCF | 4.83 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)1.74
EY11.83%
EPS(NY)1.93
Fwd EY13.14%
FCF(TTM)2.17
FCFY14.77%
OCF(TTM)3.05
OCFY20.7%
SpS7.03
BVpS9.11
TBVpS-1.96
PEG (NY)2.52
PEG (5Y)0.34
Graham Number18.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.51% | ||
| ROE | 15.1% | ||
| ROCE | 15.91% | ||
| ROIC | 12.57% | ||
| ROICexc | 14.82% | ||
| ROICexgc | 166.98% | ||
| OM | 32.42% | ||
| PM (TTM) | 19.58% | ||
| GM | 64.56% | ||
| FCFM | 30.92% |
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-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 123.59% | ||
| Cap/Sales | 12.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.05% | ||
| Profit Quality | 157.94% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 2.14 |
F-Score6
WACC10.58%
ROIC/WACC1.19
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)14.15%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%-0.87%
EPS Next Y3.36%
EPS Next 2Y8.01%
EPS Next 3Y9.27%
EPS Next 5YN/A
Revenue 1Y (TTM)15.6%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%13.52%
Revenue Next Year12.37%
Revenue Next 2Y10.38%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
EBIT growth 1Y30.49%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year60.99%
EBIT Next 3Y23.03%
EBIT Next 5YN/A
FCF growth 1Y64.44%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y61.2%
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.