AFYA LTD-CLASS A (AFYA) Stock Fundamental Analysis
NASDAQ:AFYA - KYG011251066 - Common Stock
15.18 USD
-0.09 (-0.59%)
15.18 USD
0 (0%)
Taking everything into account, AFYA scores 6 out of 10 in our fundamental rating. AFYA was compared to 72 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
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.
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
AFYA has a better Return On Assets (7.51%) than 75.00% of its industry peers.
With a decent Return On Equity value of 15.10%, AFYA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
AFYA has a better Return On Invested Capital (12.57%) than 90.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AFYA is in line with the industry average of 9.88%.
The last Return On Invested Capital (12.57%) for AFYA is above the 3 year average (9.34%), which is a sign of increasing profitability.
| 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
AFYA has a Profit Margin of 19.58%. This is amongst the best in the industry. AFYA outperforms 90.28% of its industry peers.
In the last couple of years the Profit Margin of AFYA has declined.
AFYA has a Operating Margin of 32.42%. This is amongst the best in the industry. AFYA outperforms 97.22% of its industry peers.
In the last couple of years the Operating Margin of AFYA has grown nicely.
AFYA's Gross Margin of 64.56% is fine compared to the rest of the industry. AFYA outperforms 76.39% of its industry peers.
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 | 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
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.
The number of shares outstanding for AFYA has been increased compared to 5 years ago.
Compared to 1 year ago, AFYA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 indicates that AFYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
AFYA's Altman-Z score of 2.16 is fine compared to the rest of the industry. AFYA outperforms 62.50% of its industry peers.
The Debt to FCF ratio of AFYA is 2.94, which is a good value as it means it would take AFYA, 2.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFYA (2.94) is better than 73.61% of its industry peers.
AFYA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
AFYA's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. AFYA outperforms 43.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.11
WACC11.29%
2.3 Liquidity
A Current Ratio of 0.94 indicates that AFYA may have some problems paying its short term obligations.
AFYA has a Current ratio (0.94) which is comparable to the rest of the industry.
AFYA has a Quick 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.
AFYA has a Quick ratio (0.94) which is in line with its industry peers.
| 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.
The Earnings Per Share has been growing by 25.00% on average over the past years. This is a very strong growth
AFYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
AFYA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.50% yearly.
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
AFYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.48% yearly.
AFYA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y6.76%
EPS Next 2Y8.53%
EPS Next 3Y10.48%
EPS Next 5YN/A
Revenue Next Year12.75%
Revenue Next 2Y10.54%
Revenue Next 3Y9.3%
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
With a Price/Earnings ratio of 8.77, the valuation of AFYA can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 90.28% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AFYA to the average of the S&P500 Index (27.13), we can say AFYA is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.84, the valuation of AFYA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFYA indicates a rather cheap valuation: AFYA is cheaper than 97.22% of the companies listed in the same industry.
AFYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
AFYA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFYA is cheaper than 86.11% of the companies in the same industry.
AFYA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFYA is cheaper than 93.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AFYA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)0.35
EPS Next 2Y8.53%
EPS Next 3Y10.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, AFYA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, AFYA pays a better dividend. On top of this AFYA pays more dividend than 87.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, AFYA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 2Y8.53%
EPS Next 3Y10.48%
15.18
-0.09 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners18.12%
Inst Owner Change7.48%
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap1.42B
Analysts72.86
Price Target19.38 (27.67%)
Short Float %1.86%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)-4.66%
PT rev (3m)-1.12%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)1.49%
EPS NY rev (3m)6.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 7.84 | ||
| P/S | 2.18 | ||
| P/FCF | 7.04 | ||
| P/OCF | 5.02 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.54 |
EPS(TTM)1.73
EY11.4%
EPS(NY)1.94
Fwd EY12.76%
FCF(TTM)2.16
FCFY14.21%
OCF(TTM)3.02
OCFY19.91%
SpS6.97
BVpS9.04
TBVpS-1.94
PEG (NY)1.3
PEG (5Y)0.35
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%
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-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 | 2.16 |
F-Score6
WACC11.29%
ROIC/WACC1.11
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 Y6.76%
EPS Next 2Y8.53%
EPS Next 3Y10.48%
EPS Next 5YN/A
Revenue 1Y (TTM)15.6%
Revenue growth 3Y24.33%
Revenue growth 5Y34.5%
Sales Q2Q%13.52%
Revenue Next Year12.75%
Revenue Next 2Y10.54%
Revenue Next 3Y9.3%
Revenue Next 5YN/A
EBIT growth 1Y30.49%
EBIT growth 3Y31.92%
EBIT growth 5Y37.58%
EBIT Next Year59.85%
EBIT Next 3Y22.35%
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%