AFYA LTD-CLASS A (AFYA)

KYG011251066 - Common Stock

18.59  -0.04 (-0.21%)

Fundamental Rating

6

Overall AFYA gets a fundamental rating of 6 out of 10. We evaluated AFYA against 65 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 growing strongly while it also seems undervalued. This is an interesting combination This makes AFYA very considerable for value and growth investing!



8

1. Profitability

1.1 Basic Checks

In the past year AFYA was profitable.
AFYA had a positive operating cash flow in the past year.
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's Return On Assets of 5.09% is amongst the best of the industry. AFYA outperforms 82.81% of its industry peers.
Looking at the Return On Equity, with a value of 10.73%, AFYA belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
AFYA's Return On Invested Capital of 9.28% is amongst the best of the industry. AFYA outperforms 82.81% of its industry peers.
AFYA had an Average Return On Invested Capital over the past 3 years of 7.92%. This is significantly below the industry average of 15.19%.
The 3 year average ROIC (7.92%) for AFYA is below the current ROIC(9.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.09%
ROE 10.73%
ROIC 9.28%
ROA(3y)4.58%
ROA(5y)5.15%
ROE(3y)9.99%
ROE(5y)9.77%
ROIC(3y)7.92%
ROIC(5y)7.37%

1.3 Margins

The Profit Margin of AFYA (13.43%) is better than 92.19% of its industry peers.
In the last couple of years the Profit Margin of AFYA has declined.
AFYA has a better Operating Margin (26.67%) than 95.31% of its industry peers.
In the last couple of years the Operating Margin of AFYA has declined.
AFYA has a Gross Margin of 61.41%. This is in the better half of the industry: AFYA outperforms 71.88% of its industry peers.
AFYA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 26.67%
PM (TTM) 13.43%
GM 61.41%
OM growth 3Y-4.1%
OM growth 5Y-1.57%
PM growth 3Y-17.95%
PM growth 5Y-13.88%
GM growth 3Y-1.27%
GM growth 5Y4.33%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFYA is destroying value.
Compared to 1 year ago, AFYA has about the same amount of shares outstanding.
Compared to 5 years ago, AFYA has more shares outstanding
Compared to 1 year ago, AFYA has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.33 indicates that AFYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
AFYA has a better Altman-Z score (2.33) than 65.63% of its industry peers.
The Debt to FCF ratio of AFYA is 3.35, which is a good value as it means it would take AFYA, 3.35 years of fcf income to pay off all of its debts.
AFYA's Debt to FCF ratio of 3.35 is fine compared to the rest of the industry. AFYA outperforms 79.69% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that AFYA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, AFYA is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 3.35
Altman-Z 2.33
ROIC/WACC0.74
WACC12.55%

2.3 Liquidity

AFYA has a Current Ratio of 1.14. 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 (1.14) which is comparable to the rest of the industry.
A Quick Ratio of 1.14 indicates that AFYA should not have too much problems paying its short term obligations.
AFYA has a Quick ratio of 1.14. This is comparable to the rest of the industry: AFYA outperforms 46.88% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 1.14

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.90% over the past year.
AFYA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.05% yearly.
Looking at the last year, AFYA shows a very strong growth in Revenue. The Revenue has grown by 23.48%.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.83% yearly.
EPS 1Y (TTM)13.9%
EPS 3Y14.65%
EPS 5Y5.05%
EPS growth Q2Q29.71%
Revenue 1Y (TTM)23.48%
Revenue growth 3Y33.78%
Revenue growth 5Y53.83%
Revenue growth Q2Q24.98%

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 18.39% on average per year.
The Revenue is expected to grow by 8.09% on average over the next years. This is quite good.
EPS Next Y21.91%
EPS Next 2Y18.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.29%
Revenue Next 2Y9.51%
Revenue Next 3Y8.09%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

8

4. Valuation

4.1 Price/Earnings Ratio

AFYA is valuated correctly with a Price/Earnings ratio of 14.52.
Based on the Price/Earnings ratio, AFYA is valued a bit cheaper than 78.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, AFYA is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.91, which indicates a very decent valuation of AFYA.
Based on the Price/Forward Earnings ratio, AFYA is valued cheaper than 84.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, AFYA is valued a bit cheaper.
Industry RankSector Rank
PE 14.52
Fwd PE 11.91

4.2 Price Multiples

70.31% 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 cheaper than 89.06% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.89
EV/EBITDA 10.26

4.3 Compensation for Growth

AFYA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of AFYA may justify a higher PE ratio.
AFYA's earnings are expected to grow with 18.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)2.87
EPS Next 2Y18.39%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

No dividends for AFYA!.
Industry RankSector Rank
Dividend Yield N/A

AFYA LTD-CLASS A

NASDAQ:AFYA (3/28/2024, 2:59:04 PM)

18.59

-0.04 (-0.21%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.74B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.52
Fwd PE 11.91
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.66
PEG (5Y)2.87
Profitability
Industry RankSector Rank
ROA 5.09%
ROE 10.73%
ROCE
ROIC
ROICexc
ROICexgc
OM 26.67%
PM (TTM) 13.43%
GM 61.41%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.14
Quick Ratio 1.14
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.9%
EPS 3Y14.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.48%
Revenue growth 3Y33.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y