AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD
Overall AFYA gets a fundamental rating of 7 out of 10. We evaluated AFYA against 71 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 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
In the past year AFYA was profitable.
In the past year AFYA had a positive cash flow from operations.
AFYA had positive earnings in each of the past 5 years.
AFYA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFYA has a Return On Assets of 7.46%. This is in the better half of the industry: AFYA outperforms 77.46% of its industry peers.
AFYA's Return On Equity of 15.45% is fine compared to the rest of the industry. AFYA outperforms 77.46% of its industry peers.
AFYA has a Return On Invested Capital of 11.11%. This is amongst the best in the industry. AFYA outperforms 85.92% of its industry peers.
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 10.64%.
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
With an excellent Profit Margin value of 19.79%, AFYA belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
In the last couple of years the Profit Margin of AFYA has declined.
AFYA's Operating Margin of 31.87% is amongst the best of the industry. AFYA outperforms 98.59% 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 64.24%, AFYA is in the better half of the industry, outperforming 78.87% 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
AFYA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AFYA has about the same amout of shares outstanding than it did 1 year ago.
AFYA has more shares outstanding than it did 5 years ago.
AFYA has a worse debt/assets ratio than last year.
2.2 Solvency
AFYA has an Altman-Z score of 2.36. 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 2.36. This is in the better half of the industry: AFYA outperforms 60.56% of its industry peers.
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.
The Debt to FCF ratio of AFYA (2.85) is better than 74.65% of its industry peers.
AFYA has a Debt/Equity ratio of 0.63. This is a neutral value indicating AFYA is somewhat dependend on debt financing.
AFYA has a worse Debt to Equity ratio (0.63) than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.05
WACC10.6%
2.3 Liquidity
AFYA has a Current Ratio of 1.42. This is a normal value and indicates that AFYA is financially healthy and should not expect problems in meeting its short term obligations.
AFYA has a Current ratio of 1.42. This is comparable to the rest of the industry: AFYA outperforms 57.75% of its industry peers.
AFYA has a Quick Ratio of 1.42. This is a normal value and indicates that AFYA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AFYA (1.42) is better than 60.56% 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.
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 15.70%.
The Revenue has been growing by 34.50% on average over the past years. This is a very strong growth!
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
AFYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.99% yearly.
Based on estimates for the next years, AFYA will show a quite strong growth in Revenue. The Revenue will grow by 9.97% on average per year.
EPS Next Y1.46%
EPS Next 2Y10.33%
EPS Next 3Y11.99%
EPS Next 5YN/A
Revenue Next Year13.2%
Revenue Next 2Y10.94%
Revenue Next 3Y9.97%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 10.45, the valuation of AFYA can be described as reasonable.
Based on the Price/Earnings ratio, AFYA is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.92, AFYA is valued rather cheaply.
A Price/Forward Earnings ratio of 9.01 indicates a reasonable valuation of AFYA.
95.77% of the companies in the same industry are more expensive than AFYA, based on the Price/Forward Earnings ratio.
AFYA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
AFYA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AFYA is cheaper than 78.87% 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 94.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 7.72 |
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)7.17
PEG (5Y)0.42
EPS Next 2Y10.33%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.22, AFYA pays a better dividend. On top of this AFYA pays more dividend than 88.73% of the companies listed in the same industry.
With a Dividend Yield of 1.26, AFYA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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 2Y10.33%
EPS Next 3Y11.99%
17.66
+0.18 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners17.74%
Inst Owner Change-32.78%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.66B
Analysts52.31
Price Target20.33 (15.12%)
Short Float %5.93%
Short Ratio7.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)3.72%
PT rev (3m)5.28%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)5.94%
EPS NY rev (1m)0.92%
EPS NY rev (3m)2.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.01 | ||
| P/S | 2.67 | ||
| P/FCF | 8.17 | ||
| P/OCF | 6.2 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)1.69
EY9.57%
EPS(NY)1.96
Fwd EY11.09%
FCF(TTM)2.16
FCFY12.24%
OCF(TTM)2.85
OCFY16.12%
SpS6.62
BVpS8.47
TBVpS-2.12
PEG (NY)7.17
PEG (5Y)0.42
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 | 2.36 |
F-Score7
WACC10.6%
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 Y1.46%
EPS Next 2Y10.33%
EPS Next 3Y11.99%
EPS Next 5YN/A
Revenue 1Y (TTM)15.7%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.43%
Revenue Next Year13.2%
Revenue Next 2Y10.94%
Revenue Next 3Y9.97%
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%