AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD
AFYA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 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. AFYA is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, AFYA could be worth investigating further for value and growth investing!.
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.
In the past 5 years AFYA has always been profitable.
Each year in the past 5 years AFYA had a positive operating cash flow.
1.2 Ratios
AFYA has a Return On Assets of 7.46%. This is in the better half of the industry: AFYA outperforms 76.39% of its industry peers.
Looking at the Return On Equity, with a value of 15.45%, AFYA is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
AFYA's Return On Invested Capital of 11.11% is amongst the best of the industry. AFYA outperforms 86.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFYA is in line with the industry average of 10.36%.
The 3 year average ROIC (9.34%) for AFYA is below the current ROIC(11.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 15.45% | ||
| ROIC | 11.11% |
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
Looking at the Profit Margin, with a value of 19.79%, AFYA belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
AFYA's Profit Margin has declined in the last couple of years.
The Operating Margin of AFYA (31.87%) is better than 98.61% of its industry peers.
AFYA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 64.24%, AFYA is doing good in the industry, outperforming 76.39% of the companies in the same industry.
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 | 31.87% | ||
| PM (TTM) | 19.79% | ||
| GM | 64.24% |
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.
AFYA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFYA has more shares outstanding
AFYA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.17 indicates that AFYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.17, AFYA is doing good in the industry, outperforming 61.11% of the companies in the same industry.
AFYA has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as AFYA would need 2.85 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.85, AFYA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that AFYA is somewhat dependend on debt financing.
AFYA's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. AFYA is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.05
WACC10.61%
2.3 Liquidity
A Current Ratio of 1.42 indicates that AFYA should not have too much problems paying its short term obligations.
The Current ratio of AFYA (1.42) is comparable to the rest of the industry.
A Quick Ratio of 1.42 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA has a better Quick ratio (1.42) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.97%, which is quite impressive.
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 15.70% 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)27.97%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.79%
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
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 11.42% on average per year.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.94% yearly.
EPS Next Y5.2%
EPS Next 2Y9.72%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue Next Year13.11%
Revenue Next 2Y10.9%
Revenue Next 3Y9.94%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
Based on the Price/Earnings ratio of 8.74, the valuation of AFYA can be described as reasonable.
Based on the Price/Earnings ratio, AFYA is valued cheaply inside the industry as 90.28% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.54. AFYA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.61 indicates a rather cheap valuation of AFYA.
Based on the Price/Forward Earnings ratio, AFYA is valued cheaper than 97.22% of the companies in the same industry.
AFYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 84.72% of the companies listed in the same industry.
94.44% of the companies in the same industry are more expensive than AFYA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.83 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AFYA may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)0.35
EPS Next 2Y9.72%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.69%.
In the last 3 months the price of AFYA has falen by -24.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.74, AFYA pays a better dividend. On top of this AFYA pays more dividend than 90.28% of the companies listed in the same industry.
AFYA's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 2Y9.72%
EPS Next 3Y11.42%
14.85
+0.15 (+1.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners17.74%
Inst Owner Change1.33%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.39B
Analysts52.31
Price Target20.33 (36.9%)
Short Float %1.36%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)17.87%
Min EPS beat(2)14.25%
Max EPS beat(2)21.5%
EPS beat(4)3
Avg EPS beat(4)10.2%
Min EPS beat(4)-10.08%
Max EPS beat(4)21.5%
EPS beat(8)5
Avg EPS beat(8)8.32%
EPS beat(12)6
Avg EPS beat(12)4.62%
EPS beat(16)8
Avg EPS beat(16)3.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)-0.92%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)4
Avg Revenue beat(12)-0.03%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)0%
PT rev (3m)5.28%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)1.99%
EPS NY rev (1m)3.69%
EPS NY rev (3m)7.85%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 7.61 | ||
| P/S | 2.23 | ||
| P/FCF | 6.83 | ||
| P/OCF | 5.18 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.68 |
EPS(TTM)1.7
EY11.45%
EPS(NY)1.95
Fwd EY13.13%
FCF(TTM)2.18
FCFY14.65%
OCF(TTM)2.87
OCFY19.3%
SpS6.66
BVpS8.53
TBVpS-2.14
PEG (NY)1.68
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.46% | ||
| ROE | 15.45% | ||
| ROCE | 14.06% | ||
| ROIC | 11.11% | ||
| ROICexc | 13.04% | ||
| ROICexgc | 76.58% | ||
| OM | 31.87% | ||
| PM (TTM) | 19.79% | ||
| GM | 64.24% | ||
| FCFM | 32.67% |
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%
ROICexcg growth 3Y23.68%
ROICexcg 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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 102.92% | ||
| Cap/Sales | 10.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.61% | ||
| Profit Quality | 165.08% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 2.17 |
F-Score7
WACC10.61%
ROIC/WACC1.05
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)27.97%
EPS 3Y30.22%
EPS 5Y25%
EPS Q2Q%16.79%
EPS Next Y5.2%
EPS Next 2Y9.72%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
Revenue Next Year13.11%
Revenue Next 2Y10.9%
Revenue Next 3Y9.94%
Revenue Next 5YN/A
EBIT growth 1Y32.47%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year57.47%
EBIT Next 3Y22.54%
EBIT Next 5YN/A
FCF growth 1Y85.33%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y64.88%
OCF growth 3Y31.44%
OCF growth 5Y36.78%