AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - Nasdaq - KYG011251066 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AFYA. AFYA was compared to 73 industry peers in the Diversified Consumer Services industry. While AFYA has a great profitability rating, there are some minor concerns on its financial health. AFYA is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, AFYA could be worth investigating further for 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.
Each year in the past 5 years AFYA has been profitable.
AFYA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.65%, AFYA is in the better half of the industry, outperforming 78.08% of the companies in the same industry.
AFYA has a better Return On Equity (14.10%) than 78.08% of its industry peers.
AFYA has a better Return On Invested Capital (9.38%) than 84.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFYA is below the industry average of 11.99%.
The 3 year average ROIC (9.34%) for AFYA is below the current ROIC(9.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 14.1% | ||
| ROIC | 9.38% |
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 18.20%, AFYA belongs to the best of the industry, outperforming 93.15% of the companies in the same industry.
In the last couple of years the Profit Margin of AFYA has declined.
With an excellent Operating Margin value of 29.03%, AFYA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AFYA's Operating Margin has improved in the last couple of years.
AFYA has a better Gross Margin (62.38%) than 76.71% of its industry peers.
AFYA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.03% | ||
| PM (TTM) | 18.2% | ||
| GM | 62.39% |
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) below the Cost of Capital (WACC), AFYA is destroying value.
Compared to 1 year ago, AFYA has about the same amount of shares outstanding.
The number of shares outstanding for AFYA has been increased compared to 5 years ago.
AFYA has a worse debt/assets ratio than last year.
2.2 Solvency
AFYA has an Altman-Z score of 2.37. 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 (2.37) is better than 64.38% of its industry peers.
The Debt to FCF ratio of AFYA is 3.51, which is a good value as it means it would take AFYA, 3.51 years of fcf income to pay off all of its debts.
AFYA has a better Debt to FCF ratio (3.51) than 73.97% of its industry peers.
AFYA has a Debt/Equity ratio of 0.74. This is a neutral value indicating AFYA is somewhat dependend on debt financing.
AFYA's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. AFYA is outperformed by 63.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.56
WACC16.75%
2.3 Liquidity
A Current Ratio of 1.60 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA's Current ratio of 1.60 is fine compared to the rest of the industry. AFYA outperforms 61.64% of its industry peers.
AFYA has a Quick Ratio of 1.60. This is a normal value and indicates that AFYA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.60, AFYA is doing good in the industry, outperforming 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
AFYA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.59%, 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 25.01% on average per year.
AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.90%.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.50% yearly.
EPS 1Y (TTM)39.59%
EPS 3Y30.22%
EPS 5Y25.01%
EPS Q2Q%17.32%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.32%
3.2 Future
AFYA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
The Revenue is expected to grow by 11.55% on average over the next years. This is quite good.
EPS Next Y-2.46%
EPS Next 2Y7.25%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue Next Year12.6%
Revenue Next 2Y10.79%
Revenue Next 3Y11.55%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.03 indicates a correct valuation of AFYA.
Based on the Price/Earnings ratio, AFYA is valued cheaper than 84.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of AFYA to the average of the S&P500 Index (27.75), we can say AFYA is valued rather cheaply.
AFYA is valuated correctly with a Price/Forward Earnings ratio of 12.34.
82.19% of the companies in the same industry are more expensive than AFYA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, AFYA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
73.97% of the companies in the same industry are more expensive than AFYA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AFYA is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
The decent profitability rating of AFYA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y7.25%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
AFYA has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
AFYA's Dividend Yield is rather good when compared to the industry average which is at 4.79. AFYA pays more dividend than 87.67% of the companies in the same industry.
With a Dividend Yield of 1.28, AFYA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 2Y7.25%
EPS Next 3Y7.26%
19.12
-0.26 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners31.86%
Inst Owner Change-0.46%
Ins Owners11.17%
Ins Owner ChangeN/A
Market Cap1.68B
Analysts52.31
Price Target19.31 (0.99%)
Short Float %15.89%
Short Ratio15.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.53%
Min EPS beat(2)-10.08%
Max EPS beat(2)15.13%
EPS beat(4)3
Avg EPS beat(4)8.15%
Min EPS beat(4)-10.08%
Max EPS beat(4)15.13%
EPS beat(8)3
Avg EPS beat(8)2.08%
EPS beat(12)6
Avg EPS beat(12)4.89%
EPS beat(16)6
Avg EPS beat(16)-3.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)1.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)5
Avg Revenue beat(16)-0.88%
PT rev (1m)0%
PT rev (3m)-6.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.18%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-8.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 12.34 | ||
| P/S | 2.97 | ||
| P/FCF | 10.64 | ||
| P/OCF | 7.29 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.48 |
EPS(TTM)1.59
EY8.32%
EPS(NY)1.55
Fwd EY8.11%
FCF(TTM)1.8
FCFY9.4%
OCF(TTM)2.62
OCFY13.71%
SpS6.44
BVpS8.32
TBVpS-2.9
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 14.1% | ||
| ROCE | 11.87% | ||
| ROIC | 9.38% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 51.82% | ||
| OM | 29.03% | ||
| PM (TTM) | 18.2% | ||
| GM | 62.39% | ||
| FCFM | 27.9% |
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)10.2%
ROICexc(5y)9.35%
ROICexgc(3y)44.45%
ROICexgc(5y)43.22%
ROCE(3y)11.82%
ROCE(5y)10.37%
ROICexcg growth 3Y3.16%
ROICexcg growth 5Y-5.84%
ROICexc growth 3Y13.76%
ROICexc growth 5Y0.96%
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 124.69% | ||
| Cap/Sales | 12.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.55% | ||
| Profit Quality | 153.29% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 2.37 |
F-Score7
WACC16.75%
ROIC/WACC0.56
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)39.59%
EPS 3Y30.22%
EPS 5Y25.01%
EPS Q2Q%17.32%
EPS Next Y-2.46%
EPS Next 2Y7.25%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%16.32%
Revenue Next Year12.6%
Revenue Next 2Y10.79%
Revenue Next 3Y11.55%
Revenue Next 5YN/A
EBIT growth 1Y24.37%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year54.9%
EBIT Next 3Y21.46%
EBIT Next 5YN/A
FCF growth 1Y17.04%
FCF growth 3Y43.21%
FCF growth 5Y42.42%
OCF growth 1Y26.5%
OCF growth 3Y31.44%
OCF growth 5Y36.78%